Archive for the ‘Ted Butler’ Category

Ted Butler: How Silver Could Bubble Up

Posted by on August 27th 2014 in China, Federal Reserve, General Economy, Gold, JPMorgan, Short Sellers, Silver, Ted Butler, Ukraine, Wall Street | Be the first to comment!

SilverBubbleIn making the case for a “coming silver bubble,” Ted Butler explains that “an asset bubble develops when an undervalued asset which has a compelling investment story and there exists an overall financial environment of sufficient buying power, catches the collective interest of the crowd. For example, by the mid-2000’s and after years of steady appreciation, residential real estate developed into an asset bubble amid the self-fulfilling cycle of continued gains and the availability of easy credit.

As far as great stories go, silver has the best potential story to develop into a bubble. First, there is little argument BubblingUpthat it is among the most, if not the most undervalued asset of all by objective relative historical price comparison. In addition, it is at or below its primary cost of production, as evidenced in recent quarterly earnings reports. Remember, most bubbles start out with an asset that is undervalued – on this score silver more than qualifies as being undervalued. Aside from extreme undervaluation, the silver story is multi-faceted.”… Read More >>>

See also:

Coin News/SRSrocco ReportGold, silver rise; Silver Eagle bullion coins top 28M;  Shanghai silver warehouse stocks fall 24% in one week

Bloomberg/LA Times: Gold advances most in two weeks on Ukraine tension

GoldCore/GoldSeek:  Russia coordinating gold reserve accumulation with ex-Soviet states?; Will the U.S. succeed in breaking Russia to maintain dollar hegemony?

Mineweb/SafeHaven:  Is Asian gold demand really slipping so much?; Road sign says – Pot of gold ahead

Daily Reckoning/Zero Hedge:  As the Fed prints money, buy gold and brace for impact; Council on Foreign Relations – “Central Banks should hand consumers cash directly

Gold Up and Down on Crises Fluctuations

Posted by on August 9th 2014 in ECB, Federal Reserve, General Economy, Gold, Iraq, Middle East, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, Ukraine, Wall Street | Be the first to comment!

Gold&Crises

Reuters reports that before ending off 0.3% on Friday, “gold rallied to a three-week high on news U.S. aircraft bombed Islamic fighters marching on Iraq’s Kurdish capital of Arbil.  But safe-haven buying dried up after Russia’s Defense Ministry said it had finished military exercises near its border with Ukraine.” And after also losing a fraction on Friday, silver was down 1.8% for the week, while gold logged a 1.4% gain. But when it comes to 2014 bullion coin sales, silver’s thumping gold.

See also:

BullionVault/Yahoo Finance:  The dollar, gold & Middle East oil; Why this is the moment of truth for the gold trade

Dan Norcini:  Ukraine events supporting gold, but for how long?

Bloomberg/Time: World war on Russia’s mind when U.S. duels over Ukraine; Putin’s popularity soars to 87% in the face of adversity

Bloomberg/Telegraph:  Draghi says geopolitical risks to economy increasing; Germany close to recession as ECB admits recovery is weak

GATA/Zero Hedge:  Alasdair Macleod:  No market crashes anymore, just currency risk; Marc Faber – By printing money, the Fed has delayed the inevitable ‘cleaning’ process

King One Eye/Ted Butler:  Two precious metal must-sees; Oh, Oh – The dangers inherent in gold and silver pool accounts

Coin News/Numismaster:  U.S. Mint suspends in-person sales of Kennedy gold coin; JFKa Ching – First four gold Kennedys go for $20,000

Metals Retreat; West Bank Palestinians Advance

Posted by on July 25th 2014 in CFTC, China, CME Group, General Economy, Gold, IMF, Middle East, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

MetalsRetreatPalestiniansAdvance

Gold and silver ended down about 1% and 2.5% respectively on Thursday, representing a buying opportunity for one scribe, as global strife took a back seat to what was seen as positive economic news from the eurozone and China, and on U.S. jobless claims hitting an eight-year low.  But citing earlier “negative surprises” from the U.S. and Chinese economies, and ongoing geopolitical risks, the IMF lowered its global growth forecast for 2014.

With gold dropping below $1,300 and stalling at its 200-day moving average, Reuters quotes one observer as saying, “To be fair, I think some people have a right to be disappointed that the stresses around the world haven’t led to a continued rise in the price of gold. We’re probably in oversold territory right now where gold is concerned, but we also seem to be pulling into an area between $1,290 and $1,280 that should offer some support to the market.”

See also:

Dan Norcini/Reuters:  China gold demand slumps 19.4 pct on yr, but output rises

Ted Butler:  Silver tightness

Hard Assets Investor:  Gold’s fair value – bear says $800, bull says $5,000

Investing.com/SafeHavenHappy markets in an unhappy world; Clear and present danger zone

Bloomberg/Business Insider:  Don’t tell anybody about this story on HFT power Jump Trading, one of 10 being eyed by the SEC

Wall Street On Parade:  Lawsuit stunner – Half of futures trades in Chicago are illegal wash trades

Metals Nixed, but News is Mixed

Posted by on July 15th 2014 in CFTC, CME Group, Federal Reserve, General Economy, Gold, Janet Yellen, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

MetalsSlammedLower

Spot gold and silver dropped more than 2% on Monday, with one stated reason being an easing of problems in Portugal’s banking sector, which may still be far from solved. But arguably having little to do with Portugal, there was “massive selling in the futures market. Reportedly, 2300 futures contracts, with a notional value of $1.4 billion, were sold at the New York open,” according to USA Gold:  “We’ve seen such raids in the paper market in the past. Throwing this kind of volume at the market all at once is reflective of someone not interested in getting the best price, but rather someone looking to generate shock and awe.” But while gold was being shocked and awed to its worst day in 2014, U.S. Mint bullion coin sales jumped, and GLD, the major gold ETF, was said to have seen its largest inflow since August 2011.

See also:  

Ted Butler:  The silver conspiracy

Bloomberg:  Goldman stays gold bear as bullish wagers increase; Individuals pile into stocks as pros say bull is spent

Reuters:  Yellen says Fed easy money needed even after recovery – New Yorker

Business Insider/Zero HedgeNew Yorker article seen igniting CNBC shouter; Rick Santelli goes beserk

BullionStar.com:  Koos Jansen – For how long will people trust fiat money?

Metals Rangebound: Any Breakout In Sight?

Posted by on July 9th 2014 in CFTC, China, CME Group, ECB, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

GoldBreakout?

Spot gold and silver saw the slightest of gains on Tuesday while futures were slightly off in what Gold Forecaster‘s Julian Phillips brands a “strange” market, where gold demand is “steady and solid in a relatively thin market, but not swayed by speculators,” who, along with and dealers, “are trying to move gold around with the euro, which keeps going stronger as the dollar weakens.”  But, he added that gold “keeps drifting higher as U.S. investors are now net buyers of the SPDR gold ETF in the last three weeks.”

As for the prospect of gold drifting even higher, CNBC, under the headline “These 3 charts tell you to buy gold,” highlights a note from Sterne Agee.  The author contends that the investment advisory “remain new buyers and would be new buyers right here, in anticipation of the current ‘bearish-to-bullish’ reversal continuing and gaining urgency as new participants are drawn in.”  It goes on to predict that gold will rise to $1,500/oz, but with no timeline, before running into resistance….Read More >>>

See also:

Barron’s/Bloomberg:  Gold, silver – The speculators are back; Gold shines again as hedge funds boost wagers on advance

Expected ReturnsI’m back!; Do you remember? Why gold?

Eric Sprott:  The physical buyers will overwhelm the paper sellers

Mining.com/SilverSeek:  Reports- CME/Thomson Reuters to run the silver fix; Ted Butler – CME’s Comex- Why it’s corrupt

Zero Hedge:  Stock buyback shocker; Debt – Eight reasons why this time is different; Is the Fed going to attempt a controlled collapse?

Reuters/New York Sun:  Fed’s Yellen to deliver monetary policy report to Congress next week; Congress eyes rules for the Fed

Silver Takes Quarter; Gold Wins Half

Posted by 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!

SilverQuarterAfter 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 alsoGoldHalf 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.”

See also:

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

Ted Butler: Current Silver Setup the ‘Best in History’

Posted by on June 28th 2014 in CFTC, Gold, JPMorgan, Quants, Short Sellers, Silver, Ted Butler, Timothy Massad, Wall Street | Be the first to comment!

SilverSetup

With gold and silver futures posting their longest run of weekly gains since January, MarketWatch‘s “Commodities Corner” column looks at “Why silver’s outperforming gold and isn’t done yet,” and Ted Butler declares that “there has rarely been a better time to buy and hold silver because the sharp price decline has created an undervaluation that I never expected.”

Describing the two categories of traders known as “raptors” and “technical funds,” Butler explains that “The raptors who are long have the technical funds who are short over a barrel. It’s only a matter of time until the raptors decide to ring the cash register by orchestrating higher silver prices. This will cause the technical funds to buy back their silver short position. Because the technical funds hold a record silver short position, this makes the current setup the best in history. Make no mistake, the technical funds must buy back, rather than deliver metal to close out their short position. As a result, there is now the largest amount of potential buying power in history. Silver should surprise to the upside at some point soon.”… Read More >>>

Silver’s Fortunes Tied to Copper

Posted by on May 14th 2014 in Bart Chilton, CFTC, China, Federal Reserve, General Economy, Gold, JPMorgan, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

SilverCopperBFFs

With gold and silver ending basically flat on Tuesday, and copper falling after factory production in China was up slightly less in April than analysts had predicted, Dan Norcini writes of “keeping a close eye on the chart of this key metal to gauge how investors/traders are sizing up the overall global economy,” and advises that “silver bulls should be hoping that copper remains firm…. If they want silver higher, then they need to cheer for improving economic news, especially any sort of news that would indicate the Velocity of Money might be starting to pick up. In other words, they should be cheering for growth and inflation that tends to accompany it. Silver needs inflation and solid economic growth to move higher – Period! It will not thrive if the equity markets crater and traders begin to fear deflation and or slowing growth.”

See also:

WSJ:  China slows down – economists react; Investors begin to question rate of global growth

In Gold We Trust:  China’s tentacles reaching all over the globe

GoldSeek:  The big picture in precious metals; An open letter to the good people of Switzerland

SafeHaven/SilverSeek: David Morgan – Dissecting silver lies and liars; Who should GAO believe – Ted Butler or Bart Chilton?

Wall Street on Parade: The HFT lawsuit that has Wall Street running scared

Frontline:  “United States of Secrets“; A review, and an interview with the producer & whistleblowers

Gold Hit by Dollar Bounce; Bears Still in Control?

Posted by on May 9th 2014 in CFTC, Federal Reserve, General Economy, Gold, Janet Yellen, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

DollarBearsAfter ECB head Mario Draghi hinted at fresh stimulus measures that caused the euro to fall from more than two-year highs against the U.S. dollar, gold “saw some increased selling pressure surface,” according to one analyst cited by Coin News.  But he added that the dollar “continues in a near-term price downtrend on the daily chart. The dollar bears are still in technical control, which is a bullish underlying factor for most of the raw commodities, including precious metals.”

But with spot gold and silver ending at $1,290 and $19.15 respectively on Thursday, Jesse’s Café Américain finds that “The capping of gold and silver at 1300 and 20 is hard to miss. Someone with deep pockets and a lot of power and regulatory clout seems interested in discouraging any precious metals rally and breakout.”

See also:

Ted Butler:  A real surprise – GAO responds to allegations of silver manipulation

Zero Hedge: Spot the “unrigged” difference; The Fed (and friends) $10 trillion visible hand

Reuters:  Yellen – Could take 5-8 years to shrink Fed portfolio

Steve St. Angelo:  The one silver factor the fiat monetary authorities are worried about; Canadian silver production down significantly

Got Gold Report/Mineweb:  Gold trade nearly net long Comex gold futures; World top 10 gold producers – countries and companies

NY Times/Bloomberg:  Separatists defy Kiev and Putin on referendum; Putin to showcase military as Russia drill fuels Ukraine tension

As New Sanctions Drop, So Do Metals

Posted by on April 29th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

MetalsDropWithNewSanctions

Silver and gold were off about a half a percent on Monday, reports Reuters, “despite heightened geopolitical tensions over the situation in Ukraine.” The article attributes Monday’s drop to data showing that pending home sales rose in March for the the first time in nine months, but they’re still off significantly from a year ago.

And while newly-imposed sanctions on Russia by the U.S. and the European Union failed to boost gold, GoldCore cites an RBC analyst, who has been “quite bearish on gold in recent years,” as predicting that sanctions and a deepening of the Ukrainian crisis could have a “massively bullish impact on gold prices.” And Bloomberg quotes asset manager Adrian Day as saying, “You’re going to get a lot of backwards and forwards in gold. The gold situation has been compounded by Ukraine. I’m very bullish on gold, but it’s going to be a trade for the patient.”

See also:

USA Today/Time:  Russia sanctions not tough enough — yet, analysts say; U.S. sanctions push Putin toward his dream of a new financial system

Jesse’s Café Américain:  Gold and silver may be running quite a gauntlet this week

Ted Butler:  The world’s most undervalued asset

Mineweb/Frank Holmes:  Chinese gold imports from Hong Kong jump 27% in Q1; China holds the keys to the gold market

Bullion Bulls CanadaThe secret silver stockpile

GoldSwitzerland:  Matterhorn Interview – Gold price rigging allows continuation of flawed policies

MarketWatch: ‘How Gold has Stomped the Competition’

Posted by on March 22nd 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, India, Janet Yellen, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

MarketWatchGold

“After a 28% price plunge in 2013, the worst since at least 1984, analysts weren’t expecting much from gold this year,” begins MarketWatch’s annotated slideshow on how “Gold is beating nearly every investment this year…. Many big banks were forecasting average 2014 prices below $1,300 an ounce, down from last year’s average of $1,413. But the precious metal has already managed to outperform U.S. stocks, bonds, emerging markets and the dollar.

Gold benefitted as two important sources of demand bought at the same time: Western speculators and Eastern savers, said Brien Lundin, editor of Gold Newsletter…. The metal’s performance has been impressive against a bevy of assets. But its path is far from set. Developments between Ukraine, Russia and the West are still fluid, and hints from Federal Reserve Chairwoman Janet Yellen that a U.S. interest-rate hike could take place sooner rather than later could make bond yields more attractive. Still, if you were one of those contrarians who were quietly bullish in January, we’ll forgive some back-patting. In seven charts, here’s a look at how gold has stomped the competition and what could come next.” ….Read More >>>  

See also:

Zero Hedge/Mineweb:  Goldman doubles down its hate on the best performing asset of 2014; Goldman’s blinkered view on gold could be so wrong

Dan Norcini:  Carnage in biotech sector provides support for gold

SilverSeek/Jesse’s Café Américain: Ted Butler – Suing JPMorgan & the COMEX; “My primary concern is a lack of transparency.”

CNBC:  Peter Schiff and Mark Dow do battle on gold

Zero Hedge/Asia TimesPetrodollar alert:  Putin prepares to announce “holy grail” gas deal with China; How Crimea plays in Beijing

The Hankyoreh/Bloomberg:  Official gold market to open in South Korea; Smuggled gold in flower pots defying India import limits

FOMC Meets Spell Weak Weeks for Gold

Posted by on March 21st 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Janet Yellen, JPMorgan, Monetary Policy, Quants, Russia, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

FOMCweeksGold

Zero Hedge:  “What is more confidence-inspiring in the Fed’s ability to manage the world and the continued dominance of the U.S. dollar as global reserve currency than a falling gold price… and when better to show that than FOMC meeting weeks… welcome to the centrally-planned world where the announcement of ongoing trillions in fiat dilution constantly crushes the price of undilutable money.”

The above chart comes courtesy of Meridian Macro. Click on the “Gold & Silver Report (weekly)” button on the charts page for a free pdf sample of their March 14 offering.

See also:

Jim Rickards: Fed does not want ‘disorderly’ rise in gold prices

Reuters/MarketWatch:  Gold flat on Fed plans, easing Ukraine tensions; Gold, silver settle at lowest levels month to date

Dan Norcini:  Easing Ukranian tensions, hawkish Fed, undercut gold

STA Wealth Management:  What history says about Fed rate hikes

Mineweb:  Yellen knocks gold. Will Putin drive it back up again?; Silver imports soar 180% in India

Reuters/Ted Butler:  CME Group to launch gold, silver copper weekly options in April; The COMEX has developed into a ‘bucket shop‘ comprised of speculators

GoldSwitzerland:  Koos Jansen – China’s gold policy is one of the world’s most important developments