Archive for the ‘Gold’ Category

Swiss Gold Vote Coverage Ramps Up

Posted by on November 26th 2014 in CFTC, China, CME Group, ECB, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Media, Monetary Policy, Quants, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!

ClockIsTicking

As the non-financial mainstream media begin focusing on Sunday’s Swiss gold referendum, USA Today reports a Bank of America prediction that “the price of gold could jump to more than $1,350 an ounce — an increase of 18%,” if the “yes” vote prevails. And a Guardian article, headlined “Fears that ‘dangerous’ Switzerland referendum could spark gold rush,” refers to a quote by the chairman of the Swiss National Bank, who said during a ‘sermon’ he delivered at a Swiss church, “The initiative is dangerous because it would weaken the SNB.”

But the lion’s share of the Guardian‘s quotes come from precious metals analyst and blogger Koos Jansen, who calls the Swiss initiative “merely part of a increasing global scramble towards gold and away from the endless printing of money,” adding that “While those behind the Swiss initiative have often been portrayed as crazy, they’re merely acting out of fear that their central bank is losing control of its monetary policy, and of the Swiss franc being sucked into this currency war and losing its value.”

SwissGoldCoverageRampsUp

Coin News/SilverSeek:  Precious metals rise as dollar dips, U.S. coin sales gain; Silver – what COT analysis tells us

Gold Silver Worlds:  Algos gone wild?  Gold price went ballistic to $1,450 in less than 20 minutes

Bloomberg/Mineweb:  China’s gold imports rise for a third month on jewelry sales; China 2014 gold demand heading for 2,100 tonnes

SafeHaven/Financial Post  Can gold extend its rally?; 6 reasons to be bullish on gold

Bloomberg:  Platinum & Pallidum – HSBC, Goldman rigged metals’ prices for years, suit says

GATA/WSOP: U.S. Senate report shows how easily banks can rig gold, copper, and other markets; Scale of Wall Street’s commodity holdings are “unprecedented in U.S. history

Metals Hold; Silver Eagles Go For Gold

Posted by on November 25th 2014 in CFTC, China, CME Group, ECB, General Economy, Gold, JPMorgan, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

SilverEaglesGoForGoldFollowing Friday’s surge, spot silver and gold ended up and down 0.2% respectively on Monday, with trading said to be quiet ahead of Thanksgiving, and with “investors awaiting news from the OPEC meeting this week and Swiss referendum on Sunday on how the country manages its gold holdings.” And even though the U.S. Mint is still limiting how many Silver Eagles are sold, Coin News reports that the “2014-dated Silver Eagle just hit 41,217,000 for the year and reclaimed a record pace. Silver Eagle sales in record year 2013 reached 40,675,000 through Nov. 24, 2013. The coins last year ended at 42,675,000 in sales.”

See also:

SRSrocco Report/Seeking Alpha: Significant drawdown of U.K. silver inventories due to record Indian demand

SilverSeek: Is COMEX silver being cornered?

Fx Empire/MarketWatch: Hedge funds increase long gold positions; Gold may see ‘decent recovery‘ to $1,400

Gold 321/SafeHaven: The stealth bull market in gold; Why gold is headed much higher

Bullion Star: Total Chinese gold reserves approaching 16,000 tonnes

Zero Hedge:  Deutsche Bank to central banks: “Purchase the gold held by private households“; Ukraine central bank admits gold outflow, calls it “Optimization of reserve structure

Metals Gain as China, Netherlands Surprise

Posted by on November 22nd 2014 in CFTC, CME Group, ECB, Euro, Federal Reserve, General Economy, Gold, Goldman Sachs, Interest Rates, JPMorgan, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!

ChinaRateCutSuprise

Spot silver gained 1.5% on Friday and gold added 0.9% “after a surprise rate cut by China fueled expectations demand could rise in the world’s biggest consumer” of gold, reports Reuters. “Any measures that accelerate the spending power of the Chinese public are bound to be positive for gold,” said a Mitsubishi analyst, suggesting that it could lead Chinese consumers to “buy more jewelry and investment products.”

DutchGoldSurpriseAlso, or perhaps primarily, boosting gold on Friday was news that the Dutch central bank has repatriated 122 tonnes of gold from the New York Fed’s vaults, with a spokesman for the bank saying that “It is no longer wise to keep half of our gold in one part of the world. Maybe it was desirable during the Cold War, but not now.”

“What’s particularly interesting about this surprise,” according to USA Gold, “is that little-ol’ Holland somehow managed to jump in front of Germany in extracting their gold from the Fed. You may recall that Germany requested back in 2013 that 300 tonnes of gold be repatriated. After nearly two-years, a disturbingly small percentage has actually been returned.”

See also:

Bloomberg/WSJ: Gold, silver rise to three-week highs on China interest-rate cut; Bring on the currency wars

Dan Norcini/Telegraph: China news, ECB roil commodity markets; Mario Draghi – ECB must now raise inflation ‘as fast as possible’

GoldMoney/CNBC: Market report – Better tone for volatile gold; Central banks – The new gold bugs?

Bullion Star:  Switzerland net exports 100 tonnes of gold in October

Zero Hedge/GoldCore: Everything you need to know about the Swiss gold referendum; Swiss gold vote likely tighter than polls suggest

Bloomberg/Jesse’s Café Américain: Fed may limit Wall Street role in commodities; Sen. Carl Levin – Fed enabled banks to elbow way into commodities, manipulate prices

Metals Seen Riding ‘Wave’ Higher

Posted by on November 21st 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Quants, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

AnalystsSeeMetalsRidingWaveHigher

In a Mineweb article published earlier this week, by Lawrence Williams and headlined “Elliott Wave analyst sees big gold and silver price surge ahead,” Williams reference’s Wikipedia’s definition of Elliott Wave as “a form of technical analysis that some traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.”

In addition to the analyst cited by Mineweb, Peter Goodburn, another prominent Elliott Wave adherent is Avi Gilburt, whose articles are regularly published on Seeking Alpha.

Gilburt, who is more an analyst of, than advocate for precious metals, takes up their cause in his latest missive. “I do not often write about the metals on MarketWatch,” he begins, “but have seen too many bearish articles calling for the death to the metals, so I felt compelled to speak up. While many are now saying it is time to sell metals, I will have to disagree. The time to sell your metals was several years ago. Now is the time to start looking to buy them back.”

See also:

Reuters/Coin News: Spot gold rises as price drop tempts physical buyers; Gold futures dip for second day, U.S. Mint sales rise

Bloomberg: Gold heading for longest stretch of weekly increases since July

Sharelynx/Contra Corner: : Chart – Russia adds another 600,000 ozs of gold to its reserves in October; As “sanctions war” heats up, will Putin play his ‘gold card’?

Reuters: Unusual gold moves in Asian hours puzzle jittery traders

Barron’s/MarketWatch: Jeremy Grantham – S&P 500 could gain another 10% before “crashing as it always does“; Man who called last stock crash — Peter Schiff — is already blaming the Fed for the next

The Real News/Time: The power to create money in the hands of the banks; Study suggests banking industry breeds dishonesty

Metals ‘Creep Back’ After ‘Leaky’ Poll

Posted by on November 20th 2014 in CFTC, China, General Economy, Gold, Goldman Sachs, India, JPMorgan, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

SwissGoldPollDoubt

A poll indicating a drop in support for the “yes” vote in the Swiss gold initiative was initially cited for gold futures falling 1.5% Wednesday morning. But as the above chart shows, investors bought the news and futures ended off only 0.3%, as it was observed that “The clearly leaked results sparked considerable weakness in gold and silver, but once the data was released, markets began to creep back – perhaps questioning the plausibility of such a big swing in such a short amount of time.” And while gold ended slightly down, silver futures added 0.7%.

See also:

SRSrocco Report: U.S. Mint reports on Silver Eagles: Huge demand & weekly rationing

Bullion Star/Peak Prosperity: India precious metals import explodes in October; Eric Sprott – Global gold demand is overwhelming supply

Zero Hedge: How central banks use “gold swaps” to boost their holdings

GoldCore/Sprout Money: Unusual Russian central bank gold buying announcement fuels gold’s rise; Gold Wars – Putin’s mining buddies are stepping up to the plate

NY Times:  U.S. Senate report criticizes Goldman and JPMorgan over their influence in commodities market

ProPublica/NY Sun: Secret tapes hint at turmoil in New York Fed team monitoring JPMorgan; “Too-big” banks – Finally time to break ‘em up?

Wall Street on Parade: Book claims stark parallels between JPMorgan & Gambino crime family

Russia/Ukraine Gold — All In vs. All Gone

Posted by on November 19th 2014 in China, Federal Reserve, General Economy, Gold, India, Interest Rates, Monetary Policy, Russia, Short Sellers, Silver, U.S. Congress, Ukraine, USD, Wall Street, Warren Buffett | Be the first to comment!

Russia:UkraineGold

While Reuters pegs Tuesday’s gains in gold and silver to a falling dollar, a Bloomberg article headlines Russia adding to its gold reserves as a major factor in gold topping $1,200 an ounce on its way to a two-week high. “The fact that Russia is buying more gold instead of diversifying into another currency or buying more dollars is a big positive,” said one trader, in response to a report that Russia has purchased about 150 tonnes of gold so far this year, almost twice its 2013 buy, including 35 tonnes since the end of September.

But in Ukraine, according to a Zero Hedge post, the head of the country’s central bank said during a TV interview that “in the vaults of the central bank there is almost no gold left,” adding that there’s “a small amount of gold bullion left, but it’s just 1% of reserves.” Earlier this year the IMF put Ukraine’s gold holdings at 42.3 tonnes, or 8% of total reserves. Zero Hedge concludes: “now that the disappearance of Ukraine’s gold has been confirmed, perhaps it is time to refresh the “unconfirmed” story that a little after the current Ukraine regime took power the bulk of Ukraine’s gold was taken to the United States.”

See also:

Mineweb/SilverSeek: Gold bounces back above $1,200 – will it jump higher?; Gold and silver supply is very tight

Dan Norcini/Sprout Money: Gold taking cues from forex market movements; When will gold’s fundamentals rise to the surface?

Bloomberg: Gold lending rate most negative since 2001 on longer refining

Acting Man/TradePlacer: Wrinkles of the Swiss gold referendum; Impressions of the latest TV debate

Mauldin Economics/Peak Prosperity/Wolf Street: Correction? What correction?; John Hussman – The stock market is overvalued by 100%; Warren Buffet is dumping stocks out the backdoor

Confounded Interest: Fed’s FOMC speeches become more complex over time as Middle Class feels more abandoned

Rutherford Institute/LA Times: Are ‘We the People’ useful idiots in the digital age?; NSA surveillance bill defeated in Senate

Silver’s Million Ounce Monday

Posted by on November 18th 2014 in CFTC, China, ECB, Euro, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, USD, Warren Buffett | Be the first to comment!

MillionOunceMonday

Although spot gold and silver ended off 0.1% and 0.7% respectively on Monday, as the dollar rose on news overnight, that Japan fell into a recession, more than a million Silver Eagles were sold on the first day the coins were available since going dark almost two weeks ago. “At 40,393,000 coins sold in 2014 so far,” reports Coin News, “there is now just one stronger year in the Silver Eagle’s 29-year history — 2013 at 42,675,000 coins.”

And an argument that silver is showing “Signs of Life,” suggests that despite the “demoralizing” price action since July, recent technical and fundamental activity “could be screaming at us that this is about to change. Increasing physical demand highlighted by a lack of availability of and rising premiums for silver coins and bars coupled with an extension and overbought condition in the gold-silver ratio is significant. Add to that a pair of bullish key-reversal days on consecutive Fridays validated by the same action in gold.”

See also:

Mineweb:: Elliott Wave analyst sees big gold and silver price surge ahead

Mining.com/Bullion Star: India back to being world’s top gold consumer; Who’s feeding China’s gold hunger?

Jesse’s Café Américain/GATA: How many potential owners per ounce of registered Comex gold?; Four key observations from Deutsche Bank’s report on the Swiss gold initiative

BullionVault: Eurozone’s QE “could include gold bullion” to boost inflation

Zero Hedge: Here is your “global recovery” in 24 charts; Mission accomplished – Stocks and homeless kids hit all-time highs

Reuters/PBS NewsHour: The COLA crunch: Why Social Security isn’t keeping up with seniors’ costs; Laurence Kotlikoff’s Social Security advice archive

Down, Up, Up: Metals Spike; Myriad Reasons Cited

Posted by on November 15th 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, Middle East, Monetary Policy, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

MetalsSpike11:14:14

After falling Friday morning on an upbeat U.S. retail sales report for October, spot gold and silver roared back to gain 2.5% and 4.4% respectively,” reports Reuters, quoting one metals’ trader as observing that “The early morning pressure was met with significant bargain-hunting, and when the market was unable to continue its move lower, short-covering ensued.”

Reuters also attributes gold’s gains to a “sudden weakening of the dollar,” which is emphasized by Zero Hedge, along with a report that the “yes” vote is leading in polling on the Swiss gold referendum.  Add to that, a money manager tells MarketWatch that “Gold reversed after oil got bid on speculation that OPEC will cut oil output,” while a trader quoted by Bloomberg concurs: “The spike in oil prices acted as a catalyst. There was a lot of fund buying.”

See also:

GoldMoney/Arabian Money:  Alasdair Macleod – Market Report – Is gold turning the corner?; Swiss gold referendum and Russian buying gives gold and silver a rally

GoldCore:  Swiss gold shenanigans intensify prior to November 30 vote

Hard Assets Investor/BullionVault:  Commodity ETF flows: Traders bet on oil & silver, dump GLD; Gold/silver ratio 2015: Can silver rise when gold falls?

USA Gold/Wealth Daily:  Gold capitulation? Not likely; Central banks buying record amounts of gold

Short Side of Long/SilverSeek:  Portfolio update: Bought silver & China; Primary silver miners losing nearly $3.00 for every ounce of production

Marketplace/The Guardian: It won’t be easy for ISIS to create its own currency

Marc Faber: Physical Gold Trumps Mining Shares

Posted by on November 14th 2014 in CFTC, CME Group, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, USD, Wall Street | 1 comment

BuyGoldYouCanHold

In a subscriber-only ETF.com interview, excerpted by Hard Assets Investor, Marc Faber weighs in on where gold’s headed and why he prefers the end product over the companies that mine it:

Q:  Gold plunged immediately after the [Oct. 31] BoJ announcement [that it would expand its asset purchases], which came only days after the Federal Reserve announced the end of QE. Where do you see gold headed in 2015?

Faber: I think it will go up. But can it go down first? Yes. In general, I would say the game that central bankers are playing is very clear: They start out with QE1 in the U.S., and then that forced essentially other central banks to do the same, to also go QE. They’re kind of passing each other the ball. One stops, the other one starts. It’s basically a game designed to kill the purchasing power of paper money. I’m not sure they’re aware of it, but in my view, this is the beginning of the end of paper money in this century.

And asked about physical gold vs. mining shares, Faber says: In general, my advice to investors is to own physical gold and not gold mining shares. Because in a disaster scenario, you don’t know what financial assets will be worth, whereas physical gold is in your possession.”…Read more>>>

See also:

Bloomberg/24/7 Wall St.:  Gold inches up, silver flat, as jobless claims rise more than forecast

Dan Norcini/WGC:  World Gold Council issues its latest report

Acting Man:  Gold market sentiment – A contrarian’s dream?

Forbes/TradePlacer:  Are small investors right about silver?; Ted Butler to silver miners – COMEX is responsible for low silver prices

Telegraph/RBTH:  Putin stockpiles gold as Russia prepares for economic war

Gold Market Macro: Eastern physical demand versus Western financial supply – who will win out?

Silver Bears Melting Away? Swap Gold for Silver?

Posted by on November 13th 2014 in CFTC, CME Group, General Economy, Gold, India, JPMorgan, Quants, Short Sellers, Silver, Wall Street | 1 comment

SilverBearsMeltingAwayAs it’s argued that the silver bears are running out of steam, or already have, but with the gold/silver ratio still above 74 as of Wednesday, Numismaster‘s Patrick Heller raises the prospect of swapping your gold for silver. He points out that the ratio “has been in the 50s much of the time over the past few years,” and he expects “a long-term equilibrium to hit somewhere around 35:1 to 40:1 between the two metals.” That said, Heller presents a number of well thought-out factors to consider, and comes down on the side of “a definite maybe,” depending on the circumstances of the trade and your current holdings. And he concludes by emphasizing that the swapping question “is different than asking if one should own any precious metals at all. A decision to own physical gold or silver is what I think of as buying insurance against the risk of calamities with paper assets such as stocks, bonds and currencies.”

See also:

SilverSeek: Gold and silver end slightly lower; Gold loses luster as retail investors look to silver

Bloomberg/GATA/Jesse’s Café Américain:  Six banks to pay $4.3 billion in first wave of currency-rigging penalties

Reuters/Arabian Money:  Swiss regulator flags attempt to manipulate bullion benchmarks; UBS fined for silver price manipulation, so this is now a matter of fact not speculation

BullionVault/Bullion DeskGood news for gold bulls from the LBMA’s near bears; Fragmentation of precious metal markets could lead to some headaches

Bloomberg/WSJ:  Swiss franc cap tested as gold bugs push referendum; Swissie close to crunch point in runup to gold referendum

Resource Investor/Mineweb:  India’s gold import bill triples to $3.5 billion in October; Scottia-Mocatta – India gold imports to rise into 2015

Gold Rebound? GOFO It!

Posted by on November 12th 2014 in CFTC, China, General Economy, Gold, Iraq, JPMorgan, Russia, Short Sellers, Silver, Syria, USD, Wall Street | Be the first to comment!

GofoGold

With gold said to be “surprisingly volatile, with sweeps up and down this week,” Tuesday was an up day, as spot gold and silver added more than 1.5%, with the gains attributed to a falling dollar and increased physical demand. “Retail demand is very strong since prices came off,” according to one trader quoted by Reuters, who added that “Asia is also showing steady buying interest.”

This as Bloomberg reports that gold “should find solace after rates at which bullion is lent for dollars turned negative, signaling tighter supply.” It’s Chart of the Day, above, “shows the three-month gold forward offered rate has turned negative on a weekly basis. Prices rose in three of the past four times this occurred since last year.”  Last week it was reported that the gold forward, or GOFO rate, was the most negative since 2001.

See also:

Coin News:  U.S. Mint to resume Silver Eagle sales on November 17

Reuters/AJA:  Russian central bank buys up domestic gold output as sanctions bite; Putin goes for the gold

AP/GoldCore:  Obama, Putin circle each other warily in China; New currency wars cometh – Gold to be “last man standing”

The Gold Report/Daily MailGold vs. fiat currency – A conversation with Alan Greenspan; ISIS wants to introduce its own currency – Plans to bring back solid gold and silver dinar coins

MarketWatch/Gold Silver Worlds:  Gold will signal when stocks have peaked; The Dow to gold ratio: Will 2015 be the turning point?

Bullion Bulls Canada/Zero Hedge:  The next crash in 2016; Former Goldman banker reveals the path to next depression & stock market collapse

Salon/Wall Street on Parade:  JPMorgan’s $9 billion witness puts government testimony by her boss into question

Physical Buyers Seize Paper-Selling Opportunity

Posted by on November 11th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Interest Rates, Media, Monetary Policy, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

PaperSelling=Opportunity

Silver and gold ended off 1.1% and 2.2% respectively on Monday, giving back a portion of Friday’s gains as the U.S. dollar rebounded. “From a technical perspective,” according to USA Gold’s daily market report, “Friday’s key-reversal on the daily chart and the hook-reversal on the weekly chart favor further short-term positive price action” in gold.  “However, persistent firmness in the dollar and buoyant stocks continue to prompt outflows from ETPs indexed to gold. Another eight tonnes came out of the paper market last week.”  But, citing numerous examples that demand for physical gold and silver “remains robust,” it notes that “We’ve seen this time and time again: Lower prices spurred by selling in the paper market are viewed as a buying opportunity by those who prefer to hold real physical metal.”

See also:

Coin News/Mineweb::  U.S. Mint gold coins gain; Silver Eagle sales remain suspended; Gold demand still running high, so where’s the turning point?

Bullion Star/USA Today:  Chinese gold demand strong, mainstream media twisting; China hoarding gold to challenge U.S. dollar?

GoldMoney/Reuters:  Deflation comes knocking at the door; Fed’s Rosengren says fight for higher inflation should be vigorous

MarketWatch/Mineweb:  Silver and gold say global growth (still) stinks; Permanent gold backwardation = global meltdown ahead

Zero Hedge:  The Council on Foreign Relations apologizes for the “Greenspan glitch