Posted by Investment Rarities on July 24th 2014 in CFTC, General Economy, Gold, India, Short Sellers, Silver, Wall Street | Be the first to comment!
“An epic farce” is how Zero Hedge characterizes Scott O’Malia’s spin through the revolving door just two days after resigning as an CFTC commissioner, to become the new head of the International Swaps and Derivatives Association (ISDA), “the biggest banking group that has constantly opposed every intervention and attempt to regulate the swaps market by the CFTC since the Lehman crisis.”
It describes ISDA as “a global OTC derivative lobby group, counting the world’s largest investment banks among its members, [that] has frequently fought regulatory efforts to reform the market after the financial crisis.” And, goes on to note that “Even an otherwise impartial Reuters appears outraged by this blatant and painfully clear example of government capture of ‘public servants’ by those who have dangled carrots of money in exchange for lobby (and future employment promise) favors, and thus set the rules, courtesy of people like O’Malia.”
Coin News: Gold, silver prices change narrowly
Alhambra Partners/Gold Report: Speculating on the gold supply; Money managers – Three reasons why gold and gold stocks will rise
Got Gold Report: COMEX Producer/Merchants in gold, view from 30,000 feet an eye opener
David Morgan/Mineweb: Smoking out Indian gold, central bank relaxes loan rules; Gold & silver bears – Was last week your best shot?
Pragmatic Capitalism: Chart of the day – Inflation fears are rising
Posted by Investment Rarities on July 22nd 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, India, Janet Yellen, Monetary Policy, Russia, Short Sellers, Silver, Ukraine, Wall Street | Be the first to comment!
“You know, if someone with quite a lot of firepower were to take a good look at the Swap Dealer combined positioning in gold and silver, and exploit that by pressing the metals a bit, they sure might have a squeezing good time of it,” writes Got Gold Report‘s Gene Arensberg, in a comprehensive analysis of the current COT set-up. He goes on to predict that “Most anything can happen short term, but at some point gold and silver are going to catch a tail wind strong enough that those attempting to prevent runaway breakouts could be overwhelmed. It is in such cases that the trader community on the COMEX becomes its most cutthroat and merciless. If the other traders sense a trapped large trader or group of traders, you know, maybe one with a way-too-huge-short position in a rising price environment as an example … well, let’s just say that all traders consider it a duty to pile on and make them pay. Watch for it.”
Reuters/Coin News: Gold rises above $1,300 on heightened tensions, S&P drop; Gold rises 0.3%, silver advances 0.6%; US Mint bullion coins gain
CNBC/Zero Hedge: David Stockman – Market’s teetering on edge, beware of Black Swan; Saxobank – “Be warned” of delayed market reaction to “escalation of global turmoil”
MarketWatch: Bank of America Merrill Lynch – The worst for gold may be over; Yellen encourages ‘fully-fledged equity bubble,’ says Jeremy Grantham
Bloomberg: Fed’s junk loan bubble-busting faces trouble as sales jump; Yellen wage gauges blurred by Boomer-Millennial shift
The BRICS Post/The Telegraph: BRICS bank capital might not be held in U.S. dollars; The dollar’s 70-year dominance is coming to an end
Financial Times: U.S. dollar clearing rules make gold the new green
Posted by Investment Rarities on July 17th 2014 in China, Federal Reserve, General Economy, Gold, India, Janet Yellen, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!
Both spot gold and silver were up a fraction on what Reuters describes as “bottom-picking” following two down days, but gold’s rally was said to have “faded after data showed U.S. manufacturing output rose at its fastest pace in more than two years in the second quarter,” and following a talk by Dallas Fed President Richer Fisher in which he said that the Fed was “likely” to start raising interest rates early next year. Over at Bloomberg things were shinier for gold as it highlighted a report that Indian imports surged 65% year-over-year in June.
The Gold Report: Editor- Upward trend a silver investor’s friend
Mineweb/GATA: Bulls might take heart from latest gold smashdown failure; The more obvious they are, the closer the day of deliverance
Bullion Bulls Canada: The end of the paper-gold market?
Zero Hedge/CSM: Shocking first – Mainstream media rushes to defend dollar reserve status; Can BRICS development bank become a rival to the World Bank?
Jesse’s Café Américain/Nanex: The stock market is rigged, with details
Wall Street on Parade: Sen. Warren lets Yellen know she’s had it with Fed’s charade about too big to fail
Posted by Investment Rarities on July 16th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, IMF, India, Janet Yellen, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!
As Jim Sinclair weighs in on Monday’s market shenanigans, spot gold and silver ended off 0.6% and 0.3% respectively on Tuesday. Gold “was weakened, opined analysts, by strength in the U.S. dollar,” reports Coin News. “The greenback saw gains after Fed chairwoman Janet Yellen testified before Congress and said the U.S. economy is improving but still needed support.” This as other analysts, and some traders, also saw her testimony as “largely neutral for the gold market,” and “tended to blame the price decline on factors such as another large sell order that reportedly hit the market, sell stops, long liquidation by funds and a reaction to outside markets.”
Echoing that notion, while also downplaying the role of Yellen’s testimony, the proprietor of Jesse’s Café Américain opines that “Most would think that the slam on the metals, and that is clearly what it was, is coincident with Bubbles Yellen and her appearance before the Congress. I was thinking it was more related to the BRIC meeting in Brazil,” where, reports Newsweek, the countries “announced the long-awaited bank and contingency fund, a clear move away from the dominance of the West in global economics and the dire consequences of an unstable dollar.”
Posted by Investment Rarities on July 8th 2014 in CFTC, China, ECB, Federal Reserve, General Economy, Gold, India, Janet Yellen, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!
With gold and silver futures ending down a fraction of a percent on Monday, a Bloomberg report attributes gold’s drop to predictions by some banks that the Fed will raise interests earlier than previously assumed, from the first quarter of 2015 to the fourth quarter of this year. But dismissing the notion that an early rate increase would hurt gold, Bloomberg Industries’ Kenneth Hoffman said that “I think the U.S. is out of the game right now,” pointing to Asia as the epicenter of the market. Citing the Singapore Exchange’s introduction of gold trading in September, he says that he recently returned from Asia and with so many “traders moving into Singapore and Hong Kong and Shanghai, there’s a lot of excitement about gold in Asia.” In late May, Mineweb wrote about a presentation by Hoffman, who offered up statistics showing that China and India are consuming more gold than the world is mining.
Los Angeles Times/GoldSeek: Why interest rates may stay very low for a lot longer
GoldCore/Peak Prosperity: Europe seeks alternative to dollar dominance – 70-year shift; Mike Maloney – The dollar as we know it will be gone within 6 years
Confounded Interest/Reuters: Has the Federal Reserve destroyed market discipline for housing and the stock market?; House Republicans propose Fed reforms, set hearing
Zero Hedge: Life on planet Yellen; The stunner from today’s round table debate to “fix” the London Gold Fix
Arabian Money: Traders see gold & silver as best bets for H2 like coffee in H1; Gold and silver entering a win-win scenario for the hedge funds?
Got Gold Report: COMEX heavy commercial gold shorts not always a sign of a top; John Hathaway – Financial leverage now $100 trillion, nine ‘compelling’ gold charts
Posted by Investment Rarities on July 1st 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Iraq, Janet Yellen, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, Timothy Massad, Wall Street | Be the first to comment!
After spot gold and silver added a fraction of a percent on Monday, silver ended up 7% for the quarter, its highest gain in three quarters, reports Reuters, and gold gained about 3.5 percent on the quarter after a nearly 7 percent gain in the first quarter, making gold the best-performing asset in the first half of 2014.
Reuters attributes gold’s gains to tensions over Ukraine and Iraq, and going forward, geopolitical tensions are also seen as the “wild card” for gold and silver, according to one analyst quoted by MarketWatch. He adds North Korea as a potential third hot spot, and says that “Any flare up in these areas could quickly lead to another round of ‘safe haven’ buying in the precious metals.”
BullionVault/Mining.com: Gold & silver beat stocks, best first-half since 2011 after “surge in bullish hedge fund bets”
Mineweb: Silver the star performer in recent precious metals rally; Silver – The irresistible force
Jesse’s Café Américain/Ted Butler: Comex silver stockpiles at the end of 2Q 2014; Comex – Why it’s corrupt
Financial Times/GATA: Singapore seizes on soaring Asia gold demand; Koos Jansen – Chinese gold demand remains robust and in an uptrend
Telegraph/Peak Prosperity: BIS – Ultra low interest rates could make global economy permanently unstable; Axel Merk – The Fed’s next move
MarketWatch: Taper Time? Janet Yellen’s Georgetown neighbors complain about ‘doughnut bellies’ of security detail
Posted by Investment Rarities on June 18th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Iraq, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!
Metals split the difference on Tuesday, with silver inching up and gold off a hair on what was perceived as a combination of profit taking, Wednesday’s FOMC finale — which is said to have ‘spooked’ gold, on fears that Fed Chair Yellen “will strike a more hawkish tone,” — and a perception that things are not getting worse in Iraq, where Islamist militants are now waging a two-front war. Reuters quotes one analyst as saying that “When gold is driven by geopolitical news, there’s a tendency that this has to keep getting worse for gold to improve. If news stabilizes, gold tends to fall back.”
Silver Seek/IRD: Silver is 7 for 7. Are we seeing #8?; Comex silver futures open interest equals all silver produced in 2013
Steve St. Angelo/Frank Holmes: Why gold’s base price should be north of $2,000; Gold investors- Let this cycle be your guide
Mineweb: Amid high inflation, gold gains in India
Acting Man/EconMatters: The inflation era has arrived; Easy money, no strings attached
Ciovacco Capital: The Fed scenario that could catch investors off guard
Posted by Investment Rarities on June 10th 2014 in CFTC, China, ECB, Federal Reserve, General Economy, Gold, India, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!
With gold and silver inching up on Monday, Bloomberg quotes one trader as saying that while “Worries about Europe are bringing in some safe-haven buying” of gold, prices will “remain range-bound as the rally in the equity market will continue to overshadow everything else.” But negative interest rates in Europe “should play out as a gold positive,” argues USA Gold, and “the prospect of deflation in Europe goes beyond simply declining price. Deflation usually spells trouble for financial institutions, as the bankruptcy rate rises and business in general slides into the tank. That trouble could generate a cross-border contagion effect….All of this is likely to fuel global gold demand and perhaps generate a summer surprise as paper gold speculators defensively cover their positions or migrate to the long side of the market.”
Arabian Money/Street Talk Live: US stocks are the most expensive in the world; More signs of bullish excess
BullionVault/SilverSeek: Gold ticks up as speculative betting against silver hits record high; U.S. bank’s silver short positions send buy signal
Acting Man/Mineweb: Gold outlook improves; Gold premium slides as Indian banks boost imports
Silver Bear Cafe/Financial Times: “China’s 2008″ — Why the Chinese must buy gold to survive; Russian companies prepare to pay for trade in renminbi
SafeHaven: Gold and silver – Let ‘dollar’ collapse or choose war. Elites will opt for war
Casey Research/Fiscal Times: Good reason for gloom and doom; Retirement savings fears grip Americans
Posted by Investment Rarities on June 3rd 2014 in China, Federal Reserve, General Economy, Gold, Goldman Sachs, India, Short Sellers, Silver, Wall Street | Be the first to comment!
In an interview last December, Bloomberg‘ precious metals analyst Kenneth Hoffman spoke of London’s gold vaults being “virtually empty,” with the gold having been sent to Switzerland, “where it has been recast to higher grade formats and shipped off to Hong Kong and then to China never to return.” Reporting on a recent Bloomberg-sponsored precious metals forum in London, Mineweb summarizes a presentation by Hoffman as showing that “China and India between them are consuming more gold than the world is actually mining.” In response, USA Gold’s Michael Kosares writes that “I cannot emphasize enough how important it is that the physical production is being drained from the market this year, and year after year, by buyers in India and China…. Whenever the West presents easy prices posted in the (arbitrary) paper markets, the East takes advantage in the form of hard physical metal.” He reasons that “At some point, the market system breaks in favor of strong hands.”
SilverSeek/Investing.com: Gold and silver end modestly lower; Gold falls on U.S. data, multiple ISM data corrections
Times of India/Want China Times: Indian government cuts import tariff value on gold, silver; Wall Street concerned over China’s gold hoarding
Telegraph/SafeHaven: China explores bond buying in first hint of QE; U.S. Treasury bonds, gold and the stock market
Wall Street on Parade: Is the market crazy? Treasurys are screaming crisis while stocks yawn
Seeking Alpha: June is historically the worst month of the year for silver; Why we are now selling our gold positions for silver positions
Bloomberg/Liberty Blitzkrieg: Ecuador sends gold bricks to Goldman Sachs in liquidity hunt
Posted by Investment Rarities on May 31st 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!
With gold and silver ending a bad week on a low note, during what is seen as an “historically weak period for precious metals,” one trader tells MarketWatch that gold’s “current price weakness seems technically driven, as it is counterintuitive to the broader and longer-term macro fundamentals.” He cites “central banks diversifying out of U.S. dollars and into gold (China and Russia), India relaxing import restrictions, geopolitical tension all around the world,” adding that the “cure for low prices is, low prices. Bulls will argue that the lack of bullish sentiment may serve as a contrarian signal and therefore prices could soon attract fresh buying interest.”
Hard Assets Investor/Zero Hedge: Jim Rogers buying gold dips but not U.S. stocks; The global death cross just got deathier
SafeHaven/The Daily Gold: Precious metals market report; Updated gold and silver COTs
Reuters/Coin News: US gold coin sales rebound, platinum sales slide; U.S. Mint ends American Silver Eagle rationing
Mineweb: China and India consuming more gold than the world mines
MoscowTimes/Eurasia Review: China to resume investment talks on $10 billion port in Crimea; A Chinese Silk Road now runs through Crimea
CNN/Washington Post: Ukraine’s President-elect vows vengeance over helicopter attack; Russian troop withdrawal brings no relief in eastern Ukraine
Posted by Investment Rarities on May 23rd 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Short Sellers, Silver, Wall Street | Be the first to comment!
Silver and gold futures rose 0.9% and 0.5% respectively on Thursday, with gold’s gain attributed to India’s central bank easing some gold import curbs in what was seen as “a major breather to the bullion industry.” And in anticipating the end of what it describes as “the most draconian gold capital control measures in history,” Zero Hedge asks: “how will the price of gold react when the formerly largest buyer of gold is back on the bid and scrambl[ing] to make up for one year of lost activity? We should know shortly, but one thing is certain: in the absence of private sector manipulation now that even the Gold Fixing cartel is imploding, the central bank manipulators, especially those at the BIS will have to work overtime in selling paper gold to compensate for what may well be a tsunami of pent up physical purchases out of the country with the 1.2 billion population.”
GoldSeek: Will central banks need to buy gold back from the market?
Financial Sense/WSJ: NY Fed’s Dudley revisits exit strategy; Alan Blinder – Fed hawks vs. doves: The sequel
Sharelynx: Are London’s precious metals fixes fixable?
Bloomberg/Motley Fool: Hedge funds cut gold bull bets most in month; This hedge fund manager is still bullish on gold
Gold & Silver Blog: Strong demand and dwindling deposits make gold a compelling investment
Of Two Minds/Bill Bonner: I’m a fiat slave, and so are you; Are you really “middle class”?
Posted by Investment Rarities on May 22nd 2014 in China, Federal Reserve, General Economy, Gold, India, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!
Gold and silver ended off a fraction of a percent in the regular trading session Wednesday, and initially fell further when the minutes from the Fed’s FOMC meeting at the end of April were released. But then rebounded, according to a portfolio manager quoted by MarketWatch, “after the minutes showed that the Reserve’s ‘intention’ is to tighten their balance sheet—but that they don’t have any plans on how they’re going to do it.” He added that “This news, combined with the news earlier this week—that rates will rise, but not for a long time—is good for gold in the short term” even though tapering “will continue to add downside pressure to gold.”
Reuters/Bloomberg: Sources – India officials ready plan to ease gold import curbs; India gold demand seen rising as government to ease curbs
Silver Investing News: The silver fix is dead, long live — what exactly?
GoldCore/MarketWatch: Russia bought 900,000 ounces of gold worth $1.17 billion in April, as it was dumping U.S. Treasuries
Alt-Market: Who’s the new secret buyer of U.S. debt?
Fortune/WSJ: Russia strikes natural gas gold in China
NBC News: From corporate giants to Main Street, fraud is on the rise; Fraud examiners report