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- Gold Investors Weekly Review – October 3rd
- Chart Analysis – Gold And Silver Price Trending Lower Until Demand Returns
- $251 Million Tomahawk Missile Contract Will Require Silver
- During An Ebola Pandemic All Of Your Rights Would Essentially Be Meaningless
- Gold & Silver Finish Brutal Week Rolling Over into the Close- Will Cartel Push Them Off the Precipice on Sunday’s Globex Open?
- Keith Goode: The Struggle Between East and West For Control of the Gold Price
- New York Times: Liar Loans Proliferate in Used Car Market
- Jim Grant: We’re in an Era of ‘Central Bank Worship’
- Calpers No Better Than Bondholders in Stockton Bankruptcy
- Koos Jansen: 39 tonnes of gold left New York Fed in July and August
- Dimitri Speck: New silver fix mechanism won't change much
- Keith Goode: The Struggle between East and West for Control of the Gold Price
- Golden Secrets (II) The Nazi Gold
- Gold & Silver Finish Brutal Week Rolling Over into the Close- Will Cartel Push Them Off the Precipice on Sunday’s Globex Open?
- Why the rush to buy gold coins shows the way the gold price will go and not the futures market
- GRAND IDENTITY THEFT – VERSION H2O Irish Water Wars – Big Data – Privatization
- Oct 3.2014?GLD remains constant/SLV declines by 152,000 oz/big raid on gold and silver with the phony jobs report/Hong Kong riots continue/More updates on Ebola/.
- Silver & Gold Demand Explodes: Western Demand back with a Vengeance!
- Mining Shares go Negative on the Year
- It’s Time to Fight Back!
- SILVER CRASHES Below $17, What’s Next? |David Morgan
| Gold Investors Weekly Review – October 3rd Posted: 04 Oct 2014 12:49 PM PDT In his weekly market review, Frank Holmes of the USFunds.com summarizes this week's strengths, weaknesses, opportunities and threats in the gold market for gold investors. Gold closed the week at $1,191.76 down $26.62 per ounce (-2.18%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, fell 5.70%. The U.S. Trade-Weighted Dollar Index rose 1.19% for the week. Gold Market StrengthsGold coin sales out of the Perth Mint, Australia's largest gold refiner, rose to 68,781 ounces in September, the highest level since October of last year. The increase in buying comes primarily from Asian buyers, who account for 80 percent of Perth Mint's sales. This trend of increasing gold coin sales is playing out in the United States as well, where September sales roughly doubled to 58,000 ounces from August. Gold demand in China is still on the rise. In the past four weeks, withdrawals from the Shanghai Gold Exchange amounted to over 170 tonnes. The increasing purchases out of China and the rest of Asia underline the resilience of gold demand as prices have pulled back. Singapore Exchange Ltd. is set to start trading a kilobar gold contract this month. The exchange joins others in the region, such as the Shanghai Gold Exchange, which started bullion trading in the Shanghai free-trade zone last month. These two developments reveal the importance of the global gold market to Asia. Gold Market WeaknessesThis Wednesday, platinum prices reached a five-year low. The precious metal has been suffering along with its peers in the strong dollar environment. Back in late July and early August, platinum traded at roughly $1,500 per ounce. Currently prices are below $1,300 per ounce. Gold production by United States mines was down 10 percent year-over-year in June. The decline stems primarily from lower production from Barrick Gold's Cortez Mine and Newmont Mining's Nevada operations. In contrast, Russian gold production for eight months this year increased 19 percent year-over-year.
Gold Market OpportunitiesAlan Greenspan, former Chairman of the Federal Reserve, articulated in an article in Foreign Affairs that China would see unexpected strength in the international financial system if it were to convert some of its foreign exchange reserves into gold. Clearly, there is speculation as to the advantages China could have if it were to purchase and hold more gold. With one of China's primary goals being to increase international use of its currency, the yuan, it should accumulate more gold. This is the view taken by Song Xin, President of the China Gold Association, who believes China should accumulate 8,500 tonnes in reserves. This logic stems from the fact that, when each country's currency became internationalized, the United States and the United Kingdom held over 50 percent of their reserves in gold. If China seeks to do the same, gold demand and prices should see substantial gains.
Gold Market ThreatsThe dollar continues to climb higher and higher, weighing on all commodity prices including gold. However, according to UBS, the dollar's rally is due to deteriorating credit as opposed to strong growth in the United States. If true, this would mean more trouble for industrial metals, but gold should ultimately benefit from that outcome.
The United States employment data that was released this Friday showed the unemployment rate falling to 5.9 percent, the lowest level since the summer of 2008. While this may be viewed as a sign of a strengthening labor market, it ignores the fact that the labor participation rate has fallen much further. In September, the labor force participation rate fell to its lowest level in 36 years with more people leaving the workforce than jobs created. People not in the labor force rose to a record high of 92.6 million. Dedicated gold funds are not seeing significant new inflows of cash to add to their positions currently. Some have speculated that gold equities may fall lower if general investors choose to wait until after the Fed hikes interest rates to start purchasing gold stocks. |
| Chart Analysis – Gold And Silver Price Trending Lower Until Demand Returns Posted: 04 Oct 2014 11:49 AM PDT This is an excerpt from Michael Noonan’s latest gold and silver commentary, from which we extracted his excellent chart analysis. The author is using chart analysis (supply/demand analysis at critical price points), which is not the same as technical analysis (in which technical indicators are analyzed). The gold charts and the silver charts are analyzed on several timeframes, which makes the chart analysis more reliable. Each Quarter-ending, we review charts few ever look at, the annual and Quarterly charts. The longer the time frame, the more controlling and the greater effort it takes to effect a change. For all of 2014, so far, it can be readily seen that any rally attempts have been weak, making no upside retracement progress. How much lower could silver go, based on the annual? The low of the wide range rally of 2010, and that would be the $15 area. The breaking of support in September is a narrower range bar relative to a similar break of support in the 2nd Q, six bars from the right on the Qtrly chart. Irrespective of where price may find support, the developing market activity shows no sign of bottoming, and the trend will not change until a bottom forms. Time-wise, this does not argue for a near-term turn from down to at least sideways, before going higher. On the monthly, we give $14.65 as a Last Low Before High [LLBH], an area where price will sometimes return as a retest. That price is close enough to the $15 level from the annual, and one can see a low there on the Qtrly, as well, so it is a price to watch should silver continue lower.  The monthly chart for the silver price remains down. The crux for silver and gold is in the discussion on the weekly chart. Unless and until demand enters the picture, price will continue lower until it finds demand sufficient to effect a change. For right now, there is no demand apparent. It may develop next week, next month, next year, we do not know, but when demand does show up, it will make its presence known.  The weekly silver price chart has broken critical support and does not show signs of exhaustion. The daily says just how weak the silver market is. Whenever price goes under the lower support channel line, it is in oversold territory. Look for how long silver has remained oversold, evidencing no ability to rally, none. Here are a few signs to watch as a check on the character of this market. Resistance can now be expected at failed support, the 18.70 area, seen by the thin horizontal line. If the next reaction rally fails to reach that price, and forms a swing high under 18.70, it will leave behind another area of bearish spacing. Once again, reading the information in present tense, the market gives the most reliable indicators upon which one can rely.  The daily silver price chart shows an acceleration to the downside. As with silver, annual gold has not rallied very much in 2014. At the same time, the decline has been small, but in a down trend, supply has been proven. It is demand that must meet the burden of proof for change and demonstrate an ability to sustain rallies. The Qtrly chart could not be any clearer in begging for a lower low under the 1200 area of support. We saw that at the end of last week, after the Qtr ended, but there is no definitive level of support above 1,100. As shown on the monthly, 1,000 +/- is a logical area of support. Based on the inability of the market to show any kind of support, and knowing Anything Can Happen, that level must be viewed as a possibility, unless or until proven otherwise.  The monthly gold price chart looks like it is going to test $1,000 an ounce. What else can be said. This is like watching a car teetering on the edge of the cliff, waiting to see if/when it falls. The trend is down, and that is all ye need to know.  The weekly gold price chart is right at a critical support level which is not likely to hold. It is a known fact that we are not big on conventional TLs. Sometimes, they can be used to determine the angle of assent in an up market and descent in a down market. Whenever the angle steepens, it can be an alert for a possible end to that phase of trend. This is a daily chart, the lowest of the time frames considered here, so it is not controlling. It is just another factor to watch as the market develops. It seems all the news you read has not affected the down trend, at all, when expectations would dictate otherwise. It is the news no one sees that continues to weigh on the PMs, so a diligence in reading the charts remains the best handle, to date. Do not be long any futures is the clear message. Hold all physical purchases as price is nearer the lows than not, and it is strong hands that buy low, weak hands sell. Pick the kind of company you wish to follow.  The daily gold price chart shows an acceleration to the downside with no signs of selling exhaustion. |
| $251 Million Tomahawk Missile Contract Will Require Silver Posted: 04 Oct 2014 10:55 AM PDT Originally appeared at GoldSilverBitcoin Originally article here. Raytheon Co. received a $251 million contract from the US Navy to make Tomahawk Block IV tactical cruise missiles for fiscal year 2014 with an option for 2015, which, according to some, means a lot of silver will soon be needed. Although much of the discussion surrounding the true composition of the Tomahawk missile is speculative, a boisterous group claims that 480 ounces of silver (16kg) is needed per cruise missile. Raytheon will build and deliver Tomahawk Block IV cruise missiles to the US Navy and the UK Royal Navy. Raytheon is charged with conducting flight tests and providing life-cycle support. Production and delivery of the Tomahawk missiles is set to begin in 2015. The Tomahawk’s range is more than 1,000 miles and is integrated on all major US surface combatants and US and UK submarines. If silver is used in these missiles, a lot of silver will be needed to fulfill this contract. But the exact numbers are fuzzy. Military applications aggregated are for sure a considerable user of industrial silver. There are lots of electrical functions for the tomahawk, such as gps, satellite tracking, terrain mapping, powerful antennaes, etc… Tomahawk missiles have a max distance of 1,500 miles. They travel between 500-600 mph, implying a rough flight time of three hours. As one poster on Kitco’s forums puts it:
According ausairpower.net,
We’ll likely never know the true amount of silver used in military applications, but here’s to hoping one day there’s no more demand from this sector. Originally appeared at GoldSilverBitcoin Original article here |
| During An Ebola Pandemic All Of Your Rights Would Essentially Be Meaningless Posted: 04 Oct 2014 07:32 AM PDT If there is a major Ebola pandemic in America, all of the liberties and the freedoms that you currently enjoy would be gone. If government officials believe that you have the virus, federal law allows them to round you up and detain you “for such time and in such manner as may be reasonably necessary.” With gold […] The post During An Ebola Pandemic All Of Your Rights Would Essentially Be Meaningless appeared first on Silver Doctors. |
| Posted: 04 Oct 2014 06:51 AM PDT Podcast: Play in new window | Download
You won't want to miss The Doc, Eric Dubin, & Bill Murphy's breakdown of this week's PM beatdown: |
| Keith Goode: The Struggle Between East and West For Control of the Gold Price Posted: 04 Oct 2014 03:13 AM PDT "So---are JPMorgan et al done to the downside yet?" ¤ Yesterday In Gold & SilverThe gold price got sold down a few dollars as soon as trading began in the Far East on their Friday---and another five bucks or so got carved off the price shortly before the London open. From there it traded unchanged until the release of the job numbers at 8:30 a.m. EDT in New York. The HFT boyz used the opportunity to put the boots to gold once again---and the low tick came around 12:45 p.m. EDT. After that, the price didn't do a lot. The high and low ticks were reported by the CME Group as $1,215.70 and $1,190.30 in the December contract. Gold finished the Friday session at $11,90.70 spot, down $23.60 from Thursday's close. Net volume was 174,000 contracts. Here's the 10-minute gold chart going all the way back before the Comex opened at 6 p.m. EDT in New York on Thursday evening---and you can see that the two small declines before the London open didn't have much volume associated with them---and JPMorgan et al saved the heavy lumber for the Comex trading session, as volume exploded when their HFT boyz worked their magic starting at 8:30 a.m. EDT. Don't forget to add two hours to the Mountain Daylight Times shown on this chart. It was more or less the same price pattern in silver, except the low tick came at 10:30 a.m. in New York---and the subsequent rally got capped around noon, and then sold down a bit. Silver traded flat from the 1:30 p.m. close of Comex trading into the 5:15 p.m. electronic close. The high and low prices were reported as $17.155 and $16.64 in the December contract. Silver finished the trading day yesterday at $16.855 spot, down 24 cents. Net volume was 45,000 contracts. The pounding of platinum continued again yesterday, as the HFT boyz took two 20 buck slices out of the salami---once in early morning trading in the Far East---and again starting at, or just before, the London a.m. gold fix. The beating stopped around 11 a.m. EDT---and the metal traded flat into the close, finishing down another 41 bucks. Platinum has never been this oversold---ever. It was similar for palladium, as da boyz peeled another 12 bucks off the price---and it finished off its low by around five dollars. You'll note that the HFT boyz only went after gold and silver at the 8:30 a.m. EDT job numbers report. Neither platinum or palladium even twitched during that time. Of course it's almost superfluous to point out that all four precious metals set new lows for this move down. The dollar index closed late on Thursday afternoon at 85.61---and rallied quietly starting almost immediately after the 6 p.m. EDT open---and was at the 86.00 level when the jobs numbers released. The NASA space launch in the index that occurred at that point took the dollar to its 86.75 high shortly before 11 a.m. EDT---and it gave up 10 points of its gain by the close. The index finished that up 103.4 basis points---and closed at 86.65. The gold stocks got pounded---gaping down at the open---and hitting their lows around 1 p.m. EDT---and never moved off the floor from there. The HUI got smacked for a breathtaking 4.47%---closing at 189.77. And even though silver only closed down 24 cents, the shares got slammed even harder, as Nick Laird's Intraday Silver Sentiment Index closed down 5.36%. The CME Daily Delivery Report showed that zero gold and 13 silver contracts were posted for delivery within the Comex-approved depositories on Tuesday. The CME Preliminary Report for the Friday trading session showed that 327 contracts disappeared from the October delivery month, leaving 1,913 contracts still open. The silver contracts still open in October rose by 78---and the contracts open now sits at 291. There were no reported changes in GLD yesterday---and as of 6:24 p.m. EDT, there were no reported changes in SLV. There was no sales report from the U.S. Mint. Over at the Comex-approved depositories on Thursday, they reported that 16,075 troy ounces of gold were received---and 22,364 troy ounces were shipped out. The link to that activity is here. There was much more activity in silver, of course, as they received 899,995 troy ounces---and 371,102 ounces were shipped out the door. Most of the activity was at Brink's, Inc. and Canada's Scotiabank. The link to that action is here. The Commitment of Traders Report, for positions held at the close of Comex trading on Tuesday, was not quite what I was hoping to see---and I'm wondering out loud if all the data from the big down day on Tuesday made it into this report, which was something I mentioned as a possibility in my Wednesday column. Anyway, the numbers are what they are. In silver, the Commercial net short position declined by only 1,306 contracts---and the new Commercial net short position now stands at 77.3 million troy ounces. Under the hood in the Disaggregated COT Report, the Managed Money category increased their short position by 3,924 contracts, which is understandable considering the price action during the reporting period. But the non-technical traders on the long side of the Managed Money category actually increased their long position by an impressive 2,458 contracts. Almost all the selling came out of the Nonreportable/small trader category. The Managed Money on the short side is now at a new record---and it's a good bet that, as a group, they don't hold a single solitary Comex long position in silver between them. So the question begs to be asked---who are the non-technical fund traders in the Managed Money category that are quietly adding to their positions on the long side---and why are they doing it and what do they know that we don't? Ted Butler said the it appears that JPMorgan decreased their short position by around 500 contracts during the reporting week---and that brings their short-side corner in the Comex silver market down to 11,000 contracts, or 55 million troy ounces. That amount represents about 70 percent of the total Commercial net short position. In gold, the Commercial net short position only declined by 3,590 Comex contracts, or 359,000 troy ounces. The Commercial net short position is now down to 6.07 million troy ounces. The shorts in the Managed Money category only added 43 contracts to their combined short positions---and the non-technical traders in that category added another 837 contracts to their huge long position. As in silver, all the selling came from the Nonreportable/small trader category---and the Commercial traders were buying everything they were selling. Ted said that JPMorgan reduced their long-side corner in the Comex gold market by 2,000 contracts during the report week, and they're now down to 23,000 contracts, or 2.3 million troy ounces. There was a big improvement in copper as well, as the Managed Money traders added another 9,324 Comex contracts to their collective short positions, while the non-technical traders in the Managed Money category added a small amount to their huge long position. Platinum and palladium improved as well, but we won't see the full effect of what happened in those two precious metals until next Friday's COT Report, as most of the engineered price decline this week didn't start until Tuesday---and has continued for the last four trading days---and it's a good bet [looking at yesterday's COT Report] that not all the trading data from Tuesday for platinum and palladium made it into Friday's report, either. The big revelation for me from this COT Report was the fact that monster long positions in all four precious metals, plus copper, are being held by these unblinking non-technical funds in the Managed Money category that have been increasing their long position regardless of whether prices are rising or falling. Opposite them in the Manged Money category are short positions held by the technical funds, who will run for cover like scared rabbits on the next rally. If the Managed Money non-technical funds longs---and the traders that are massively long in the Commercial category decide to put their hands in their pockets on the next rally, how high will the Managed Money shorts have to bid the price in order to get the long holders to sell so they can cover their short positions? The last two times this year, the Commercial long holder have let the short-side holders in the Managed Money category off easily. Will they do so this time??? The answer to that question is all that matters---and how high we go in price and how fast we get there will be 100 percent determined by how the long holders react when the short holders rush to cover. That applies to copper and crude oil as well---plus the opposite in the dollar index, where the technical funds are massively long. And, without doubt, the positions held by all parties, short or long, has become even more extreme since the cut-off on Tuesday. So we wait. Here's a chart Nick Laird sent our way yesterday. It's the live spot gold price going back five years---and with the spot price close of $1,191.30 on Friday, JPMorgan et al have set a triple bottom. But since they're capable of printing any chart pattern they want, you have to ask yourself if this really means anything. I have a fair number of stories for you today---and I hope you can find enough time during what's left of your weekend to read the ones you like. ¤ Critical Reads September Jobs: Some Numbers Bubblevision Didn't MentionThe September establishment survey showed a 248k job gain, but that was the seasonally maladjusted, preliminarily guesstimated version which will be revised in October and November, and then re-benchmarked several more times in the coming years. So let’s take a pass on the enthusiasm with respect to this fleeting monthly delta and consider a couple of trend points evident in this morning’s release—-data points which aren’t going to get revised away and which actually provide some fundamental insight about the actual “employment situation” and the true condition of the US economy. My favorite number is right at the top of the BLS table and it’s 155.9 million. That is the civilian labor force number for September and it compares to 154.9 million reported for October 2008 way back when the financial crisis was just erupting. The reason that rather tepid gain of 1 million labor force participants over the course of six years is important is that during the same period the working age civilian population (over 16 years) rose from 234.6 million to 248.4 million—-or by 14 million in round terms. That’s right, the labor force grew by only 7% of the gain in adult population. That explains, of course, why the labor force participation rate of 66.0% back at the time of the crisis has plunged to a 36-year low of 62.7% in September. Or to put it another way, the employment-to-population ratio of 59.0% last month compared to just under 62% six years ago and 64.2% in the year 2000. This commentary by David Stockman appeared on his website yesterday---and I thank Roy Stephens for today's first story.  More Bad News From The Jobs Front — Paul Craig RobertsThe Bureau of Labor Statistics headline this morning reads: “Payroll employment increases by 248,000 in September; unemployment rate declines to 5.9%.” How can this be? As I reported yesterday, U.S. corporations are investing in buying back their own stocks, not in new business ventures that produce new jobs. According to the Census Bureau’s Poverty Report, U.S. real median family income has declined to the level of twenty years ago. Consumer credit and real retail sales are not growing. Construction is limited to rental units. Construction shows 16,000 new jobs, half of which are “specialty trade contractors” or home remodelers. This commentary on the jobs numbers was posted on Paul's website yesterday as well---and it's the second offering in a row from Roy Stephens.  New York Times: Liar Loans Proliferate in Used Car MarketLiar loans — ones in which borrowers lie about the strength of their finances — played a major role in the collapse of the subprime mortgage market that began in 2007. Now they're back in the subprime loan market for used cars, The New York Times reports. Federal and state authorities, including prosecutors in New York, Alabama and Texas, are looking into the problem in the used car market, knowledgeable sources tell The Times. The investigators have so far discovered hundreds of bogus loans totaling millions of dollars. The sources said the queries center on whether dealerships lied about borrowers' income and/or employment status on their loan applications so that the dealers could sell cars to anyone, regardless of their credit rating. Hmmmm---where have we seen this problem before, dear reader? This news item was posted on the moneynews.com Internet site at 7:45 a.m. EDT on Friday---and it's courtesy of West Virginia reader Elliot Simon.  Jim Grant: We're in an Era of 'Central Bank Worship'Jim Grant is the publisher and editor of Grant’s Interest Rate Observer, a bi-monthly newsletter that he founded in 1983, around the time when bonds were considered some of the worst investments – when they yielded 13 to 15 percent. Rick Rule, Chairman of Sprott US Holdings Inc., often quotes Jim Grant’s description of government bonds as ‘return-free risk.’ (Rick sees U.S. Treasuries as the ‘anti-gold’). Mr. Grant took my questions on interest rates and the bond market – including Bill Gross’ recent departure from PIMCO – via phone from his Manhattan office. Mr. Grant, you argue that companies whose share prices are rising should be becoming more efficient – hence driving down the costs of consumer goods and services. The Fed is succeeding in keeping both stock market prices and consumer goods prices moving higher – which look like contradictory goals. Do you think this situation is sustainable going forward? This interview with Jim Grant appeared as part of the Sprott's Thoughts series---and it was posted on the sprottglobal.com Internet site yesterday.  Secret Goldman Sachs Tapes Put Pressure on New York FedWall Street’s top regulator is coming under new criticism for failing to adequately police the banks under its supervision, years after the financial crisis. Lawmakers are scrutinizing allegations that the Federal Reserve Bank of New York went easy on one of the most prominent banks under its watch, Goldman Sachs, despite concerns voiced by those inside the Fed that a deal Goldman was pursuing was “legal, but shady.” Now committees in the Senate and House of Representatives are looking at whether to hold hearings or conduct more extensive investigations into the Fed’s oversight of Goldman and other banks. The renewed interest in the Fed’s role came after the release of secret recordings detailing interactions between employees of the New York Fed and Goldman, which were made public by the investigative news organization ProPublica and the radio program “This American Life.” This updated commentary on this story appeared on The New York Times website at 9:48 p.m. EDT Thursday evening---and it's courtesy of Elliot Simon.  Goldman has a long, cozy history with New York FedSo, Sen. Elizabeth Warren (D- Mass.) wants Congress to investigate Goldman Sachs’ relationship with the Federal Reserve Bank of New York. This comes after a whistleblower tape-recorded conversations in which Fed officials seem to be treating Goldman with too much deference. It’s all words. Since Sen. Warren likes Wall Street’s campaign contributions as much as the next politician, I doubt she’ll follow through. But if some miracle descended upon Washington and there actually is an investigation, I suggest Congress look at two columns I wrote. The first, on Sept. 29, 2009, shows numerous calls between Goldman Chairman Lloyd Blankfein and Treasury Secretary (and ex-Goldman co-chair) Hank Paulson during the 2008 financial crisis. This commentary by John Crudele appeared on The New York Post's website back on Tuesday---and it's something I found in yesterday's edition of the King Report.  N.Y. Fed Lawyer Says AIG Got Billions Without PaperworkThe Federal Reserve Bank of New York poured billions of dollars into rescuing American International Group Inc. in September 2008 without drawing up documents that would cement the government’s control of the giant insurer, the bank’s lawyer testified. AIG’s dire condition required an immediate infusion of cash, and paperwork memorializing the terms of the loan wasn’t complete, Thomas Baxter, the New York Fed’s general counsel, told a judge in Washington yesterday in a trial over a shareholder challenge to the terms of the rescue. The Fed wanted to quickly get control of AIG because of concern that Rodgin Cohen, an attorney for the company, might try to re-negotiate the rescue terms, Baxter said. Cohen ha |
| New York Times: Liar Loans Proliferate in Used Car Market Posted: 04 Oct 2014 03:13 AM PDT New York Times: Liar Loans Proliferate in Used Car Market Liar loans — ones in which borrowers lie about the strength of their finances — played a major role in the collapse of the subprime mortgage market that began in 2007. Now they're back in the subprime loan market for used cars, The New York Times reports. Federal and state authorities, including prosecutors in New York, Alabama and Texas, are looking into the problem in the used car market, knowledgeable sources tell The Times. The investigators have so far discovered hundreds of bogus loans totaling millions of dollars. The sources said the queries center on whether dealerships lied about borrowers' income and/or employment status on their loan applications so that the dealers could sell cars to anyone, regardless of their credit rating. Hmmmm---where have we seen this problem before, dear reader? This news item was posted on the moneynews.com Internet site at 7:45 a.m. EDT on Friday---and it's courtesy of West Virginia reader Elliot Simon. |
| Jim Grant: We’re in an Era of ‘Central Bank Worship’ Posted: 04 Oct 2014 03:13 AM PDT Jim Grant: We're in an Era of 'Central Bank Worship' Jim Grant is the publisher and editor of Grant’s Interest Rate Observer, a bi-monthly newsletter that he founded in 1983, around the time when bonds were considered some of the worst investments – when they yielded 13 to 15 percent. Rick Rule, Chairman of Sprott US Holdings Inc., often quotes Jim Grant’s description of government bonds as ‘return-free risk.’ (Rick sees U.S. Treasuries as the ‘anti-gold’). Mr. Grant took my questions on interest rates and the bond market – including Bill Gross’ recent departure from PIMCO – via phone from his Manhattan office. Mr. Grant, you argue that companies whose share prices are rising should be becoming more efficient – hence driving down the costs of consumer goods and services. The Fed is succeeding in keeping both stock market prices and consumer goods prices moving higher – which look like contradictory goals. Do you think this situation is sustainable going forward? This interview with Jim Grant appeared as part of the Sprott's Thoughts series---and it was posted on the sprottglobal.com Internet site yesterday. |
| Calpers No Better Than Bondholders in Stockton Bankruptcy Posted: 04 Oct 2014 03:13 AM PDT Calpers No Better Than Bondholders in Stockton Bankruptcy California cities may turn to bankruptcy courts to ease pension obligations after a judge ruled the California Public Employees’ Retirement System doesn’t deserve special protection, a decision that may reverberate across the country as municipalities struggle with their finances. Bankrupt cities can cancel contracts with Calpers because federal law overrules state protections given the pension giant, U.S.Bankruptcy Judge Christopher Klein said yesterday in a hearing over the municipal bankruptcy of the city of Stockton. The judge will decide later this month how to apply his ruling to the city's reorganization plan, which protects Calpers. Stockton’s bankruptcy pits public-pension advocates against Wall Street creditors, who stand to get pennies on the dollar for their bonds. The ruling would make it more attractive for California cities with unmanageable pensions to use bankruptcy law to cut debt, just as private companies do. “It means a city can get control of its retiree liabilities and pension liabilities,” said Dale Ginter, a lawyer who represented retirees in the bankruptcy of Vallejo, California. “That’s huge.” This is another interesting Bloomberg story from late on Wednesday evening Denver time. This California story was filed from Detroit of all places---and I thank Casey Research's own Bud Conrad for sharing it with us. |
| Koos Jansen: 39 tonnes of gold left New York Fed in July and August Posted: 04 Oct 2014 03:13 AM PDT  Koos Jansen: 39 tonnes of gold left New York Fed in July and August Gold researcher and GATA consultant Koos Jansen reports that 24 tonnes of gold have been listed as withdrawn from the Federal Reserve Bank of New York in July, along with another 15 tonnes in August, presumably part of the German Bundesbank's repatriation program. Jansen's commentary was posted on the bullionstar.com Internet site at 6:05 p.m. Singapore time on their Thursday evening---and I found it embedded in a GATA release and I thank Chris Powell for the wordsmithing the above paragraph of introduction. |
| Dimitri Speck: New silver fix mechanism won't change much Posted: 04 Oct 2014 03:13 AM PDT  Dimitri Speck: New silver fix mechanism won't change much In an interview this week with Daniela Cambone of Kitco News, market researcher, author, and GATA consultant Dimitri Speck says the new price-setting mechanism for silver won't change much because the big manipulation of price is in the Comex futures markets. Speck also describes the manipulation of platinum prices. Dimitri is 100 percent correct. The interview is 5 1/2 minutes long and was posted on the kitco.com Internet site on Wednesday---and it's worth watching. It's another item I found on the gata.org Internet site yesterday. |
| Keith Goode: The Struggle between East and West for Control of the Gold Price Posted: 04 Oct 2014 03:13 AM PDT  Keith Goode: The Struggle between East and West for Control of the Gold Price This market commentary comes from Australia---and we don't hear much from the land "down under"---and this 12-page [PDF] report is certainly worth your time. So top up your coffee, or blow the froth off a cold one---and have at it. It was posted on the eagleres.com.au Internet site yesterday---and my thanks go out to Australian reader Wesley Legrand for bringing it to my attention---and now to yours. |
| Golden Secrets (II) The Nazi Gold Posted: 03 Oct 2014 11:00 PM PDT Bix Weir |
| Posted: 03 Oct 2014 09:02 PM PDT After a brutal trading week which saw silver close at 4 year lows and gold only $10 from summer 2013 lows, GATA Chairman Bill Murphy joins the show discussing: Silver closes under $17 & gold rolls over into the close- is a waterfall capitulation collapse coming on Sunday night’s Globex open? Murphy explains why this is […] The post Gold & Silver Finish Brutal Week Rolling Over into the Close- Will Cartel Push Them Off the Precipice on Sunday’s Globex Open? appeared first on Silver Doctors. This posting includes an audio/video/photo media file: Download Now |
| Why the rush to buy gold coins shows the way the gold price will go and not the futures market Posted: 03 Oct 2014 08:27 PM PDT There’s a rush to buy gold coins and bars all over the world this autumn. Last week coin sales at the US Mint were running at the highest this year with September sales double the August tally. There was a similar surge in sales of coins and minted bars at the Perth Mint to 68,781 ounces last month with Chinese buyers accounting for 80 per cent of business. The super-rich are stocking up on gold. In Perth the biggest seller is the one-kilogram bars, which are worth about $45,000 each at current prices. Buyers tell dealers they are buying gold as an insurance against a market collapse. But the other reason that they are buying gold now is the drop in the price to around $1,200 an ounce. Investment logic Is this logical? In investment markets most investors are only comfortable about investing after a long uptrend when they can feel really sure about future performance. Sadly that is the madness of crowds speaking and being among the last to invest in an asset class going up is a fatal error. Could those investing in gold now also be a mad crowd? Well to be fair the amounts of money going into gold coins and bars in Perth and the US Mint are absolutely tiny in comparison to the amount tied up in global stock markets or bonds. It is the rising trend that is interesting, not the amount being invested. If gold coin and bar sales are up why are prices falling? That’s a good question. It’s because the price of gold is set in a paper market known as the futures exchange or rather exchanges as they are multiplying particularly in China. At the moment the US dollar is on an upward tear and that is bad for precious metal prices and all other commodities priced in dollars. How long will this last? Usually not for very long because unless the US economy has acquired supernatural powers this will make it uncompetitive and deflate the profits of its many multinationals who earn their income in other currencies and have to report it in US dollars. The strong dollar is also a symptom of a weaking global economy outside of the US mainland. Troubled markets For holders of gold and silver these can be worrying times. Weaker hands are cashing out in the futures market. That actually leaves the market poised for a spectacular rebound when conditions change direction. Will you be sure to be there if you actually cash out now? It’s much more than that at risk. If the global financial system goes into a major crisis again then bonds are in peril and the only thing to own in that circumstance is gold and silver as the ultimate money and protector of value. The rush to buy gold coins shows where the gold price is heading very shortly, not the futures market. |
| GRAND IDENTITY THEFT – VERSION H2O Irish Water Wars – Big Data – Privatization Posted: 03 Oct 2014 05:54 PM PDT The leveraging possible against the added value linked to the Data Collection by Irish Water is phenomenal and the knock on effect for derivatives staggering. Hence Irish Water is worth so much more with PPS numbers attached than without. I wonder which of the politician’s friends are waiting to reap the rewards of such a lucrative asset as the entire social security data of a whole nation . This grand identity theft far outweighs the paltry couple of billion to be made from providing a water utility.
Recent history shows how easily ministers are swayed and how laws can be changed by a government that favours axing debate and silencing the state run media outlet, RTE. Added to this is the controversy over their collecting of PPS Social Security numbers and their RESERVING THE RIGHT TO PASS ON ALL INFORMATION TO THIRD PARTIES, INCLUDING MARKETING AND CREDIT CHECKING COMPANIES. It has emerged that hidden in the fine detail is an option for the government to change the law to make it possible for a private company to own our personal data should they choose to sell.
Irish water’s PR spin in relation to this is as impressive as previous efforts were in persuading the Irish people they held moral responsibility for paying private banker debts in 2008.  Data Protection Commissioners Office above Centra in Portarlington 50 miles from Dublin. YOUR PPS NUMBER = BIG DATA= BIG MONEY Big Data, according to the McKinsey Global Institute report of 2011, (Big data: The next frontier for innovation, competition and productivity), is a major growth industry worth up to $250bn p.a., the equivalent of the GDP of a small western nation, to Public Administrations, Insurers, Health Care providers etc., and is worth up to a 60% increase in profit margins for retailers etc. The whole area of data protection is hazy and ripe for abuse. They state
As Una Mullaley writes in the Irish Times about the Dragnet Question:
The leveraging possible against the added value linked to the Data Collection by Irish Water is phenomenal and the knock on effect for derivatives staggering. Hence Irish Water is worth so much more with PPS numbers attached than without. I wonder which of the politician’s friends are waiting to reap the rewards of such a lucrative asset as the entire social security data of a whole nation . This grand identity theft far outweighs the paltry couple of billion to be made from providing a water utility. Never mind the small print – trust us Irish Water's spokeswoman was on Prime Time tonight. Here's what she said: Big data: The next frontier for innovation, competition, and productivity Minister uses director at Irish Water as his personal driver Anger at Irish water charges reaches boiling point Gardaí deployed in force so Irish Water can face down meter protests by residents |
| Posted: 03 Oct 2014 02:08 PM PDT |
| Silver & Gold Demand Explodes: Western Demand back with a Vengeance! Posted: 03 Oct 2014 02:00 PM PDT It's Back! For the first time in months, Western investment demand in gold and particularly SILVER is raging like a lion that's just escaped captivity! Yesterday, while many were wringing their hands, and beside themselves about the massacre in the paper silver market, the big players, the smartest guys in the room were busy buying nearly […] The post Silver & Gold Demand Explodes: Western Demand back with a Vengeance! appeared first on Silver Doctors. |
| Mining Shares go Negative on the Year Posted: 03 Oct 2014 01:54 PM PDT It comes as no surprise that the mining shares, as evidenced by the HUI and the junior-laden GDXJ have now gone negative on the year. The theme remains the same as it has for some time now - Western-origin investment demand in the gold sector is non-existent. In an environment in which the US Dollar is King of the Mountain once more, commodities are being jettisoned and inflation pressures are collapsing, gold has few friends except for the perma gold bulls. For starters, let's first look at the Goldman Sachs Commodity Index to show the impact from a strong Dollar.  This broad-based index just narrowly missed notching a 4 Year Low today! Let me note for the record that I fully expect it to break the support line on the chart. I just do not know the timing. The reason is based on the chart pattern of the US Dollar - the greenback may have moved strongly higher on the weekly chart ( and indeed it's rally is most impressive ) but on the long term monthly chart, it could move much higher. If it does, the same macro trade that has investors buying US stocks, selling commodities, and moving money into the Dollar in general, should continue. I already posted a weekly chart of the US Dollar this morning, so please reference that. Here however is a monthly or long term chart of the currency. A push through 90, which would be a big deal, unlocks the potential for first a move to 92.50. That would actually open a possibility of a run to 100!  Needless to say, such a run would devastate gold, and silver. Let's move on to once again note the TIPS spread which continues to plummet. As it does, so too does the gold price. Again, no surprise there.  A surging Dollar working to undercut inflation fears has sent this spread down to lows last seen back in June 2013! Given that backdrop, one could easily understand why Western-based investors are getting out of gold while they can. Take a look at the reported holdings of the big gold ETF, GLD. Remember how popular that once was? Not any more! Holdings are down over 30 tons since the beginning of this year alone and that does not yet account for what was sold in there today. I will get an update on that for the reader when it becomes available. Here is the chart. Note that the last time reported holdings were at this level, it was the second week of December 2008.  So, put two and two together, surging US Dollar, falling commodity prices, + falling TIPS spread, and falling GLD holdings and is it any wonder why gold mining shares are being discarded? First is the HUI. It has sunk below its 2013 ending level and is now negative on the year.  Next, is the darling of the gold perma bulls, the GDXJ. I find it hard not to be obnoxious at this point but I well remember, and I am sure most of the regular readers/poster here do as well, how we had to suffer through the crowing and cackling of those extolling the praises of the junior miners for 2014 as if somehow they were investing geniuses because at one point its gains were actually greater than those of the S&P 500 for the year. No matter that the index had collapsed from over 160 and was now trading with a paltry "3" handle in front of it. Nope, none of that mattered you see for they and they alone were the truly wise and savvy traders/investors who had recognized the "bargains" in the sector and were now gloating in their new found gains. One can only hope that some of them were actually a lot smarter than what can be deduced from their posts and that they actually managed to sell some of the useless things while they still had some meager gains left in them for the year.  I will have to beg the forbearance of my regular readers if have crossed the line and seem a bit too severe on them. After having to suffer through their annoying and arrogant boasting it is rather amusing to see them get their proper comeuppance in the markets. As said here many times, having learned my lessons severely in the school of hard knocks, there is nothing so fitting for a successful trader than humility. Boasters come and go. I have seen and known many of them over my career. Anyone can have an occasional good trade. Doing it year in and year out, over and over again, takes great skill and hard work with many long hours. The successful trade is a sort of reward in itself because you are in effect pitting yourself against others in the markets. Only one side is going to be right. The losing side ends up donating their money to the winners. That is just a hard, cold fact about a zero sum business. When you lose money you either learn from it, become more humble, less reckless, less prone to boasting or you are soon a FORMER trader or FORMER investor. One last chart for now ( I will get some stuff up later as I have a busy afternoon right now ). Gold Look at the weekly chart and tell me if you can see the Triple Bottom. There is an old trader's adage that double bottoms and double tops tend to hold but triple bottoms and triple tops do not. We are going to see very soon if this is validated this time around. I suspect gold will not hold but could be wrong.  There are a huge number of LOSING LONG POSITIONs among the hedge funds and other large specs in the gold market at this time. I noted that several weeks ago in my analysis of the COT reports that those were underwater near $1220 ( some were under at $1240). Below $1200 it gets even worse. If $1180 goes, they ARE ALL UNDERWATER. In order for them not to liquidate in wholesale fashion, it is going to take a tremendous demand surge based on a fundamental reason for owning gold. That does not exist at this time. In other words, this time around, a plunge below $1180, if it occurs, is more than likely not going to see a sharp spike higher with an immediate rebound mainly because Western-origin investors see no reason to own gold right now. With hedge funds having an ability to play a market from either the long side or the short side, with gold breaking support, a large number of fresh shorts can be put on below that level with traders then looking for a resistance level to sell aggressively against. If the triple bottom does not hold, I do not see much in the way of downside support until 1150 with a fall to $1100 then not out of the question. We will just have to watch and see what we get. As a side note, I have just glanced at the COT reports and they indicate what has been obvious for some time, traders are selling the metals. more on that later.... |
| Posted: 03 Oct 2014 01:15 PM PDT With silver prices going down, down down, now might finally be the time for the "movers and shakers" in the mining and precious metals communities to call a major press conference to make their case and actually defend themselves from the years-long assault on their businesses. Submitted by Bill Rice Jr: As the saying goes, […] The post It’s Time to Fight Back! appeared first on Silver Doctors. |
| SILVER CRASHES Below $17, What’s Next? |David Morgan Posted: 03 Oct 2014 09:00 AM PDT With silver breaking below $17/oz to new 4 year lows this week, silver expert David Morgan breaks down what’s next for the white metal- is an epic short squeeze imminent, or is the pain just beginning? Morgan’s full interview is below: The post SILVER CRASHES Below $17, What’s Next? |David Morgan appeared first on Silver Doctors. |
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