Monday, December 5, 2016

Gold World News Flash

Gold World News Flash


Dang It Gold’s Supposed to Go Up! (Report 4 December, 2016)

Posted: 04 Dec 2016 10:22 PM PST

We've gone through a succession of events and processes that were supposed to make gold go up. The following list is by no means exhaustive:

  1. Quantitative Easing
  2. Bernanke's Helicopter Drops
  3. Janet Yellen's Keynesianism
  4. Obama's Deficits (US government debt is now a hair away from $20,000,000,000—and that's just the little part of it they put on their balance sheet)
  5. The election of Trump
  6. The Italian Referendum (current as we write this)

Each has been good for a little blip that has been forgotten in the noise. We are seeing articles now that have moved on to the next old-new story. It seems that Trump is going to spend a lot on infrastructure. This will require massive deficits. But the market will distrust that the government can pay. So we will see a twin sell off of the US dollar in terms of other currencies, and Treasury bonds in terms of dollars. This will cause the mases to Discover Gold and the gold price is going to skyrocket. Click here to buy our fine gold, we have the very best gold.

We get it. Everyone thinks that interest rates are going up because inflation because more spending. Actually not quite everyone—our view is that the drivers which have caused the interest rate to fall for 35 years are still in full, deadly effect. Nor the folks who are bidding on junk bonds, or stocks for that matter.

But most everyone. Rates have to go up, because they're lower than ever before history. Right?

And if rates are going up, then so is gold, right?

The Treasury bond is payabl only in US dollars. The US dollar, which is the liability of the Federal Reserve, is backed on by Treasurys. It's a nice little check-kiting scheme. But besides that, the two instruments have the same risks. If you don't like the bond, then you won't like the dollar either. The day will come when en masse, the market decides it doesn't like both of them, and gold will be the only acceptable money.

With due respect to our old friend Aragorn, today is not that day!

We believe interest rates are headed lower, not higher. But that said, we do not see any particular causal relationship between the interest rate and the price of gold. The former is the spread between the Fed's undefined asset and its undefined liability. It is unhinged and while it could shoot the moon from Truman through Carter, it's sailing in the other direction now. Down to Hell.

The price of gold is the exchange rate between the Fed's liability and metal. So long as people strive to get more dollars—most especially including those who bet on the price of gold, and those who write letters encouraging the bettors—there is no reason for this exchange rate to explode.

Again, to plagiarize the Ranger from the North, the day will come when gold goes into permanent backwardation. But today is not that day!

Today (Friday's close), the price of gold is down seven Federal Reserve Notes from where it was a week ago.

So where to from here? Are those dratted fundamentals moving?

We will update those fundamentals below. But first, here's the graph of the metals' prices.

       The Prices of Gold and Silver
prices

Next, this is a graph of the gold price measured in silver, otherwise known as the gold to silver ratio. It fell a bit more this week. 

The Ratio of the Gold Price to the Silver Price
ratio

For each metal, we will look at a graph of the basis and cobasis overlaid with the price of the dollar in terms of the respective metal. It will make it easier to provide brief commentary. The dollar will be represented in green, the basis in blue and cobasis in red.

Here is the gold graph.

       The Gold Basis and Cobasis and the Dollar Price
gold

The price of gold fell (i.e. the price of the dollar rose, green line), and the basis (abundance) fell and cobasis (scarcity) rose just a bit.

Our calculated fundamental price of gold fell about ten bucks, now about $1,200 even.

Now let's look at silver.

The Silver Basis and Cobasis and the Dollar Price
silver

In silver, we see a 14-cent rise in price but the cobasis is up.

The fundamentals got ever-so-slightly tighter. And our calculated fundamental price moved up to just under $15.

We note that speculators bid silver up this evening (Arizona time) in the wake of the Italian vote, some 30 cents to just under $17. But as of this publication, they couldn't hold the line and the price fell back and is now a nickel below Friday's close.

 

© 2016 Monetary Metals

GoldSeek.com Radio: John Embry and Rob Kirby, and your host Chris Waltzek

Posted: 04 Dec 2016 07:09 PM PST

John Embry, Senior Strategist of Sprott Asset Management comments on the purported 8,000 tons of paper gold dropped on the market. 8,000 metric tons (2204 lbs.), 17.6 million lbs., 282 million ounces, were unleashed on the PMs sector, equivalent to a Tsunami of selling pressure. Rob Kirby of Kirby Analytics notes that the smart money, deep pockets and institutional investors are diversifying away the dollar exposure in favor of PMs. Our guest proposes that an enormous tonnage of gold was dropped on the market following the US election - nearly the entire US reserves at Fort Knox. The move is an "act of desperation by policymakers" to contain gold and give the false illusion of weakness.

The Panic Has Begun! Global Economic Collapse Is Upon Us

Posted: 04 Dec 2016 07:00 PM PST

The second after the crash, march the 82nd Airborne to NYC and surround every FED vault. Time for the globalist banksters to go!  Their entire apparatus of support is broken the percentage of people who realise it is the central bakers that are responsible is enough so the pitch forks...

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Trouble at The Border -- Jim Fetzer

Posted: 04 Dec 2016 06:30 PM PST

Jeff Rense & Jim Fetzer - Trouble at The Border Clip from December 01, 2016 - guest Jim Fetzer on the Jeff Rense Program. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

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JILL STEIN’S BOGUS RECOUNT EFFORT ENDS IN COMPLETE FAILURE AS GREEN PARTY WITHDRAWS FROM PENNSYLVANI

Posted: 04 Dec 2016 06:00 PM PST

somebody needs to put in a lawsuit to get their money back from that petition. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

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NWO COLLAPSING - ITALY VOTES NO in REFERENDUM

Posted: 04 Dec 2016 05:30 PM PST

NWO COLLAPSING - ITALY VOTES NO in REFERENDUM Italy follows Britain in BREXIT , The EU starts collapsing The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and...

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What Will The Global Financial Economy Look Like Under President Trump

Posted: 04 Dec 2016 03:00 PM PST

In this video Luke Rudkowski interviews the dollar vigilante Jeff Berwick an entrepreneur who lost over 100 million dollars in the 2000 tech bubble and from that decided to become an expert in global finance. The two talked about free trade deals like the TPP the influence of Goldman Sachs and...

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Is Donald Trump Trolling China?

Posted: 04 Dec 2016 02:30 PM PST

Donald Trump made a phone call! Wait… That's not a big deal, right? Well, it was—since he spoke with the president of Taiwan, a country (?) that China claims is not a country, thereby inadvertently (?) creating an international incident. The Financial Armageddon Economic Collapse...

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Anonymous Update On WikiLeaks: Julian Assange May Be Dead

Posted: 04 Dec 2016 02:00 PM PST

Anonymous Message 2016 - You have to watch this! This is the latest Anonymous message to the global public.  The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers...

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STATE DEPT: HILLARY WILL BE PRESIDENT

Posted: 04 Dec 2016 01:30 PM PST

if she steals the election, the elites get the civil unrest/war they wanted to collapse us, Martial Law. ... It would only play to their end goal.... Lots of motive and things to consider. Thanks for making it easier to sit back and wait to see what straw breaks the camels back. W.W. 3 was and is...

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Anonymous - Donald Trump EXPOSES America

Posted: 04 Dec 2016 01:00 PM PST

 Anonymous - Donald Trump EXPOSES America Message Anonymous Donald Trump EXPOSES America 2016-2017We are Anonymous,We are Legion,We do not forgive,We do not forget,Expect us. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free...

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ALERT -- India is forcing its citizens into a Cashless Society

Posted: 04 Dec 2016 12:30 PM PST

GOING CASHLESS... OR GOING GOLD? India is forcing its citizens into a cashless society, Australia appears to be heading down a similar road - and more quickly than any of us thought possible. A cashless society is the banksters ultimate dream, because it gives them the total control they...

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Chris Wallace DESTROYS Jill Stein Over Disgusting Recount

Posted: 04 Dec 2016 12:00 PM PST

 Chris Wallace seems to have had enough of Jill Stein's lie that most Americans want to see this recount she and crooked Hillary Clinton are coordinating. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative...

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Recount Collapses: Jill Stein’s Failure in Pennsylvania Means Donald Trump Will Be President

Posted: 04 Dec 2016 11:00 AM PST

 Recount Collapses: Jill Stein did NOT pay the $1 million bond- HEr Failure in Pennsylvania Means Donald Trump Will Be President. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

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BREAKING: Donald Trump Targets 2nd Indiana Plant Over Plans To Shift To Mexico.

Posted: 04 Dec 2016 10:30 AM PST

 BREAKING: Donald Trump Targets Second Indiana Plant Over Plans To Shift To Mexico. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

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Gold and Silver Bullion Buying Opportunity for 2017?

Posted: 04 Dec 2016 09:19 AM PST

Gold and Silver prices have recently taken quite a battering with the price having fallen form a 2016 high of $1378 to its last close of $1178 which is not far from the low for 2016 of $1071 set early on in the year which is perking my interest on whether it could now be time to accumulate some more of the shiny precious metals that mankind has been obsessed with ever since we sought out the gold / silver shimmering signs of water on the horizon of the sun baked parched east african savanna as has been imprinted into our very DNA.

Mainstream Media Meltdown - Fury Over Mr. Trump Call W Taiwan President - Huckabee - Fox & Friends

Posted: 04 Dec 2016 08:55 AM PST

We had a big treaty for years with Taiwan and then threw them under the bus as soon as Red China told us to. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers...

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Breaking News And Best Of The Web

Posted: 04 Dec 2016 01:37 AM PST

OPEC agrees to cut output. Oil jumps, stocks rise, gold falls. The political focus shifts to upcoming Italian, French and Austrian elections, all of which could go against the establishment. India’s war on cash may turn into war on gold. Political class still searching for an explanation (see “Best of the Web”). Trump’s cabinet takes […]

The post Breaking News And Best Of The Web appeared first on DollarCollapse.com.

FIRST MAJESTIC SILVER CORP. (AG) RATING INCREASED TO BUY AT DESJARDINS

Posted: 03 Dec 2016 08:17 PM PST

First Majestic Silver Corp. (NYSE:AG) was upgraded by stock analysts at Desjardins from a “hold” rating to a “buy” rating in a research report issued on Thursday, The Fly reports.

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