Sunday, June 16, 2019

Keep Your Eyes On The Fundamental Ball And DO NOT Let Herd Sentiment Mislead You

from SilverDoctors:

Adam Hamilton says the keys to success with the precious metals are staying informed and being a contrarian. Here’s why… 

by Adam Hamilton of Zeal LLC

The junior gold miners’ stocks have spent months grinding sideways near lows, sapping confidence and breeding widespread bearishness.  The entire precious-metals sector has been left for dead, eclipsed by the dazzling Trumphoria stock-market rally.  But traders need to keep their eyes on the fundamental ball so herd sentiment doesn’t mislead them.  The juniors recently reported Q3 earnings, and enjoyed strong results.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports.  Companies trading in the States are required to file 10-Qs with the US Securities and Exchange Commission by 45 calendar days after quarter-ends.  Canadian companies have similar requirements.  In other countries with half-year reporting, many companies still partially report quarterly.

The definitive list of elite junior gold stocks to analyze used to come from the world’s most-popular junior-gold-stock investment vehicle.  This week the GDXJ VanEck Vectors Junior Gold Miners ETF reported $4.4b in net assets.  Among all gold-stock ETFs, that was only second to GDX’s $8.1b.  That is GDXJ’s big-brother ETF that includes larger major gold miners.  GDXJ’s popularity testifies to the great allure of juniors.

Unfortunately this fame has recently created major problems severely hobbling the usefulness of GDXJ.  This sector ETF has shifted from being beneficial for junior gold miners to outright harming them.  GDXJ is literally advertised as a “Junior Gold Miners ETF”.  Investors only buy GDXJ shares because they think this ETF gives them direct exposure to junior gold miners’ stocks.  But unfortunately that’s no longer true!

GDXJ is quite literally the victim of its own success.  This ETF grew so large in the first half of 2016 as gold stocks soared in a massive upleg that it risked running afoul of Canadian securities law.  Most of the world’s junior gold miners and explorers trade in Canada.  In that country once any investor including an ETF goes over 20% ownership in any stock, it is deemed a takeover offer that must be extended to all shareholders!

Understanding what happened in GDXJ is exceedingly important for junior-gold-stock investors, and I explained it in depth in my past essay on juniors’ Q1’17 results.  GDXJ’s managers were forced to reduce their stakes in leading Canadian juniors.  So capital that GDXJ investors intended to deploy in junior gold miners was instead diverted into much-larger gold miners.  GDXJ’s effective mission stealthily changed.

Not many are more deeply immersed in the gold-stock sector than me, as I’ve spent decades studying, trading, and writing about this contrarian realm.  These huge GDXJ changes weren’t advertised, and it took even me months to put the pieces together to understand what was happening.  GDXJ’s managers may have had little choice, but their major direction change has been devastating to true junior gold miners.

Investors naturally pour capital into GDXJ, the “Junior Gold Miners ETF”, expecting to own junior gold miners.  But instead of buying junior gold miners’ shares and bidding up their prices, GDXJ is instead shunting those critical inflows to the much-larger mid-tier and even major gold miners.  That left the junior gold miners starved of capital, as their share prices they rely heavily upon for financing languished in neglect.

GDXJ’s managers should’ve lobbied Canadian regulators and lawmakers to exempt ETFs from that 20% takeover rule.  Hundreds of thousands of investors buying an ETF obviously have no intention of taking over gold-mining companies!  And higher junior-gold-stock prices boost the Canadian economy, helping these miners create valuable high-paying jobs.  But GDXJ’s managers instead skated perilously close to fraud.

This year they rejiggered their own index underlying GDXJ, greatly demoting most of the junior gold miners!  Investors buying GDXJ today are getting very-low junior-gold-miner exposure, which makes the name of this ETF a deliberate deception.  I’ve championed GDXJ for years, it is a great idea.  But in its current sorry state, I wouldn’t touch it with a ten-foot pole.  It is no longer anything close to a junior-gold-miners ETF.

There’s no formal definition of a junior gold miner, which gives cover to GDXJ’s managers pushing the limits.  Major gold miners are generally those that produce over 1m ounces of gold annually.  For years juniors were considered to be sub-200k-ounce producers.  So 300k ounces per year is a very-generous threshold.  Anything between 300k to 1m ounces annually is in the mid-tier realm, where GDXJ now traffics.

That high 300k-ounce-per-year junior cutoff translates into 75k ounces per quarter.  Following the end of the gold miners’ Q3 earnings season in mid-November, I dug into the top 34 GDXJ components.  That’s just an arbitrary number that fits neatly into the tables below.  While GDXJ included a staggering 73 component stocks in mid-November, the top 34 accounted for a commanding 81.1% of its total weighting.

Out of these top 34 GDXJ companies, only 5 primary gold miners met that sub-75k-ounces-per-quarter qualification to be a junior gold miner!  Their quarterly production is highlighted in blue below, and they collectively accounted for just 7.1% of GDXJ’s total weighting.  But even that isn’t righteous, as these include a 126-year-old silver miner and a mid-tier gold miner suffering temporary production declines.

Read More @ SilverDoctors.com

THE DISINFORMATION WAR: The Attempt To Disregard Silver Investor Demand In The Market

by Steve St. Angelo, SRSrocco:

There is a Disinformation War taking place in the silver market as certain industry analysis is confusing individuals by purposely disregarding the tremendous impact of rising investment demand.  Not only do I find this troubling, but I am also quite surprised how much the silver industry pays attention to this faulty analysis.  So, it’s time once again to set the record straight.

Setting the record straight has now become a new mission for me at the SRSrocco Report because the amount of disinformation and faulty analysis being published in the mainstream and alternative media is quite disturbing.  I decided it was time to say enough was enough, so I started by destroying the myth about the 1 million tons of gold hidden in the Grand Canyon in my recent article, THE BLIND CONSPIRACY: The Gold Market Is Heading Towards A Big Fundamental Change.

If you haven’t read that article and are still confused on whether or not there are billions of ounces of gold hidden in the Grand Canyon, I highly recommend that you do.  Now, if you read the article and still believe the U.S. Government decided to make the Grand Canyon a national park to protect all that gold, then you have my sympathies.  However, the reason certain individuals in the U.S. Government decided to make the Grand Canyon a national park because it was probably a GOOD IDEA to keep a beautiful part of the country off-limits from those who had no problem with destroying the banks of the Colorado by trying to extract gold at a pathetically low uneconomical yield.

If you have seen some of the episodes of the Discovery Channel’s Gold Rush show, the result of gold dredging operations isn’t pretty.  Here is a picture of the beautiful landscape outside of Dawson City in the Yukon that shows the effects of placer mining and gold dredging.  Now, how many families in the U.S. and abroad would have taken their kids on vacation to the Grand Canyon if it looked like this?  I am quite amazed at the lack of dignity and respect by individuals who only seek at the almighty Dollar.

  (aerial photo of Dawson City, Yukon – picture courtesy of Peter Mather)
(aerial photo of Dawson City, Yukon – picture courtesy of Peter Mather)

 

To tell you the truth, I am glad that Teddy Roosevelt had the foresight to dedicate the Grand Canyon as a national monument back in 1908.  At least some politicians had the wisdom to keep OFF LIMITS parts of the country, so we weren’t able to destroy it by mining it for ultra low-grade gold or bulldoze it, pour concrete and build another million suburban homes.

Okay, let’s get back to subject at hand… Silver Market Disinformation.

Precious Metals Analyst Totally Omits Silver Investment Demand From Market Fundamentals

The motivation to write this article came from several of my readers who sent me an interview by CPM Group’s Jeff Christian, at the San Franciso Gold and Silver Summit.  In the video, Jeff claims that there has been a silver market surplus for ten years and those industry analysts, who have reported deficits, “Are simply wrong.”  Jeff goes onto to say, “they have been wrong the entire time they have been on the silver market.”

Jeff continues by explaining that to analyze the silver market correctly, you must look at surplus and deficits based on total supply versus total fabrication demand.   Furthermore, he criticizes industry analysts who may be promoting metal by throwing in investment demand to arrive at a deficit.  He says this is not the proper way to do “commodities research analysis.”

Jeff concludes by making the point, “that if you keep silver investment demand as an “off-budget item,” then the price matches your supply-demand analysis almost perfectly.”  Does it?  Oh… really?

If we look at the CPM Group’s Supply & Demand Balance chart, I wonder how Jeff is calculating his silver price analysis:

This graph is a few years old, but it still provides us with enough information to show that the silver price has nearly quadrupled during the period it experienced supposed surpluses.  According to the CPM Group’s methodology of analyzing total fabrication demand versus supply, how on earth did the silver price rise from an average of $5.05 during the deficit period to an average of $19.52 during the surplus period?  I arrived at the silver prices by averaging the total for each time-period.

Again, Jeff states during the interview that their supply-demand analysis, minus investment demand, provides an almost perfect price analysis.  According to the CPM Group’s 2016 Silver Yearbook, the total surplus for the period 2008-2016 was approximately 900 million oz.  With the market enjoying a near one billion oz surplus, why would that be bullish for a $20 silver price??  It isn’t… and I will explain why.

Read More @ SRSrocco.com

What’s the Point – Keith Weiner

by Keith Weiner, Sprott Money:

A reader emailed us, to ask a few pointed questions.

Paraphrasing, they are:

1. Who cares if dollars are calculated in gold or gold is calculated in dollars? People care only if their purchasing power has grown.

2. What is the basis good for? Is it just mathematical play for gold theorists? How does knowing the basis help your readers? Is it just a theoretical explanation of what has already happened?

3. Prove that if someone has known the basis for the last four years, he has benefitted.

He also added:

“Most websites on gold I’ve seen I have no respect for. They are snake oil salesmen trying to sell gold. Yours is not. So in that sense you guys are honest.”

That number, again, is 1-800-GOT-GOLD!

Just kidding. Thank you, sir, for your kind words and now let’s address your questions.

First, we have a general response. It is good to know the truth, for its own sake, even if there is no immediate or obvious practical benefit. The world works a certain way and, speaking for ourselves, we want to know what that way is. As they say, knowledge is power. This is doubly so with gold, where there is so much misinformation, disinformation, and rubbish economics. Some of it is mainstream, such as quantity theory of money. Some of it is unique to the gold market, such as allegations of manipulation.

Perhaps this particular set of truths about the gold market is of interest only to gold theorists. We are gold theorists, so it is of interest to us. Gold theorists number among our readers, too. But we argue that this particular set of truths should be of interest to everyone.

The greatest danger of our era is the coming monetary collapse. It is the inevitable consequence of irredeemable currency, exponentially rising debt, and falling interest. Many know that gold is part of the solution, but how? Is it just something one buys, as a speculation, to sell when its price rises?

We believe that gold is much more than that. And we argue that the belief that one must speculate to increase purchasing power is an inevitable consequence of the Fed’s war on interest. Deprived of the ability to get a reasonable yield, people turn to speculation as a surrogate.

The economic effects of investing for yield are opposite to those of speculating for capital gains. In the former, you finance an increase in production and your return comes from some of that increase. In the latter, you give your capital to a previous speculator who is exiting, and your gain comes from the next speculator handing his capital to you. Speculation converts someone’s wealth into someone else’s income, to be spent. It is a process of eating the seed corn, as Keith discusses in his series on Yield Purchasing Power .

This is one reason why we insist that gold is money, and one must calculate the value of the dollar in gold terms (i.e. 24.3 milligrams) rather than the value of gold in dollars (i.e. $1,280). The lighthouse does not move higher and lower, the steel meter stick does not get longer and shorter, and gold does not go up and down. It’s the sinking boat in the storm, the rubber band, and the dollar which move.

Another is that only with this understanding can one grasp other phenomena. For example, the sputtering and slow withdrawal of the gold bid on the dollar. In all markets in all places and times, there is a principle that the bid can withdraw in times of stress or crisis. It is never the offer that withdraws, but the bid. For example, Keith often asks what if the US Geological Survey said there will soon be an earthquake in Los Angeles, 15 on the Richter Scale? There will be many offers to sell real estate in LA. But no bid, probably from Santiago, Chile to Vancouver British Columbia, and as far east as the Mississippi River.

If one thinks that the dollar is money, and gold is a commodity, how to explain backwardation? Is it the one exception, where the offer to sell something is withdrawn while the bid is robust? What is one to make of gold backwardation (when cobasis > 0)?

Only with a clear picture, i.e. that gold is money and the dollar is credit paper, can one see that gold backwardation is serious business. It is an early harbinger of the end of our monetary era. By this, we do not mean: there will be a recession, stock market correction, or inflation (rising consumer prices). When the capital of an enterprise has been siphoned off over a period of decades, and debt is racked up beyond all means or intent to repay, and finally the inevitable default on the bond occurs, the price of that bond can go to zero.

This is not a price of gold of infinity, but a price of the dollar of zero.

But, to paraphrase our old friend Aragorn, today is not that day! In the meantime, the dollar is strong. And it has been getting stronger since early September (when it was 23.1mg gold).

On to the practical reasons to follow the gold basis and Monetary Metals research. As our reader noted, we often show what happened. We see two benefits to this. One, if you know that a bunch of speculators jumped on a Fed announcement with leverage, you know not to pile in after the gold price has blipped up $20. You know it’s not likely a durable move. Two, you may even fade the move.

The Monetary Metals Supply and Demand Report is not a trading letter. At the core, it shows a picture of, well, supply and demand conditions in the gold and silver markets. Occasionally, we will note that a metal seems underpriced or alternatively, we may say caveat emptor. On our site, we publish graphs of our calculated premium or discount on gold and silver.

While we do not say “buy here” and “sell there”, we provide a unique data set and view, not available anywhere else, to help inform traders. The basis provides actionable trading information, even if we don’t spell it out, and we use it to trade our Gold Exponential Fund .

Can we prove that readers have benefited over the past 4 years? No, and yes. No, because we don’t call trades. So we cannot tabulate simple results. But yes, because we preserve everything we have written going back to the launch of our website in January 2013. Between public and premium (free, but requires an email address) Supply and Demand Reports, you can go back to see what we were saying when we said it. For example, in July 2016 the price of silver seemed to be on a tear. It went from around $14 at the beginning of the year, to over $20.

What did your favorite silver analyst say at the time? We said many things along the way, but let’s bracket the move.

At the start, on January 31, 2016, we titled our Report Possible Sign of Silver Turn . We said:

“It’s far too early to call a bottom in the silver price. However, the movement on Thu and Fri is the sort of action we should expect to see more of if silver is to return to a bull market. It will take more action like this before we change our position on the white metal, but it is worth reporting on what we see when we see it.”

Read More @ SprottMoney.com

Plunder Capitalism

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by Paul Craig Roberts, Paul Craig Roberts:

I deplore the tax cut that has passed Congress. It is not an economic policy tax cut, and it has nothing whatsoever to do with supply-side economics. The entire purpose is to raise equity prices by providing equity owners with more capital gains and dividends. In other words, it is legislation that makes equity owners richer, thus further polarizing society into a vast arena of poverty and near-poverty and the One Percent, or more precisely a fraction of the One Percent wallowing in billions of dollars. Unless our rulers can continue to control the explanations, the tax cut edges us closer to revolution resulting from complete distrust of government.

The current tax legislation drops the corporate tax rate to 20%. This means that global corporations registered in the US will be taxed at a lower income tax rate than a licensed practical nurse making $50,000 per year. The nurse, if single, faces in 2017 a 25% marginal tax rate on all income over $37,950.

A single person is taxed at a rate of 33% on all income above $191,651. 33% was the top tax rate extracted from medieval serfs, and approaches the tax rate on US 19th century slaves. Such an upper middle class income as $191,651 sounds extraordinary to most Americans, but it is so far from the multi-million dollar annual incomes of the rich as to be invisible. In America, it is the shrinking middle and upper middle class incomes that bear the burden of income taxation. The rich with their capital gains from their equity holdings are taxed at 15%.

Even single individuals who earn between $1 and $9,325 are taxed at 10% on their pittance.

The neoliberal economists who are the shills for the rich, Wall Street, and the Banks-Too-Big-Too-Fail claim, erroneously, that by cutting the corporate income tax rate to 20% all sorts of offshored profits will be brought back to the US and lead to a booming economy and higher wages. This is absolute total nonsense. The money won’t come back, because it is invested abroad where labor costs are lower, if invested at all instead of buying back the corporation’s stock or buying other existing companies. After 20 years of offshoring US manufacturing and professional tradable skills and the incomes associated with the jobs, who is going to invest in America? The American population has no income with which to purchase the goods and services from new investment, and the American population’s credit cards are maxed out.

All that is going to happen is that Wall Street will calculate the lower tax rate into a higher equity price. Wall Street can do this without any of the offshored earnings coming home. Suddenly, everyone who owns equities will experience a boost in wealth, or the boost has already occurred in anticipation of the handout.

The deficit-conscious Republicans have put into the Bill for Enhancement of the Rich’s Wealth, cuts in social services in order to “save workers from higher interest rates from budget deficits.” This is more dishonesty. If the Fed lets real interest rates rise to any meaningful amount, derivatives will unwind, and the Fed will have to create trillions more in new dollars to keep its ponzi scheme in place. The deficit that results from the tax cut will be covered by the Fed purchasing the Treasuries, not by a rise in interest rates.

What we are witnessing in the US and indeed throughout the western world is the total failure of capitalism. Capitalism is now merely a looting machine. The financial sector no longer supplies capital for production. What the financial sector does is to turn discretionary consumer income into interest and fee payments to banks. Aggregate demand can only grow through debt expansion, and the consumers reach a point where they cannot expand their debt.

Capitalism, hiding behind “globalism,” which is misrepresented as a good thing when it is death itself, locates production where labor is cheapest, thus depriving First World labor of good wages and work opportunities and putting First World countries on the path to becoming Third World countries. Short-term profits and executive and board bonuses and stock options are maximized at the cost of the destruction of the domestic consumer market.

Plunder Capitalism also privatizes as much of the public sector, such as the military, as possible, thus driving up the cost of the Pentagon’s budget. Jobs that the soldiers themselves formerly did are given to politically-connected firms. What was once KP (kitchen patrol) is now provided by an outside private service. Private mercenaries hired by the Pentagon collect as much in a month as troops in the line of fire earn in a year. I don’t know that the army any longer has a supply organization other than the private business that has the contract.

Medicare and Medicaid are the next to be privatized, along with Social Security. The tax cut will result in deficit and high interest rate hype, and these lies will be used to save the workers from high interest rates on their mortgage, credit card, and student loan debt by scaling back or privatizing Medicare, Medicaid, and Social Security.

Read More @ PaulCraigRoberts.org

GOLD DOWN $4.50 BUT SILVER HOLDS, DOWN ONLY 1 CENT/HUGE NUMBER OF GOLD EFP TRANSFERS: 15,773 CONTRACTS OR 1,577,300 OZ (49 TONNES)

by Harvey Organ, Harvey Organ Blog:

SILVER SEES AN EFP TRANSFER OF 2881 CONTRACTS OR 14.4 MILLION OZ/HUGE DEPOSIT OF 8.56 TONNES INTO THE GLD/BITCOIN RISES TO ALMOST $11,500 PER COIN/LARGEST EVER MILITARY DRILL OVER THE KOREAN PENINSULA/FRIDAY NIGHT ISRAEL STRIKES JUST OUTSIDE OF DAMASCUS/USA SENATE PASSES ITS VERSION OF THE TAX REFORM BILL/NOW THE TWO HOUSES MUST MERGE INTO ONE BILL/

December 4, 2017 · by harveyorgan · in Uncategorized · Leave a comment 

GOLD: $1275.00  DOWN $4.50

Silver: $16.34 DOWN 1 cents

Closing access prices:

Gold $1276.20

silver: $16.33

SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)

SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1279.84 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1274.30

PREMIUM FIRST FIX: $5.54

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SECOND SHANGHAI GOLD FIX: $1279.84

NY GOLD PRICE AT THE EXACT SAME TIME: $1274.30

Premium of Shanghai 2nd fix/NY:$7.69

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LONDON FIRST GOLD FIX: 5:30 am est $1279.10

NY PRICING AT THE EXACT SAME TIME: $1274.85????

LONDON SECOND GOLD FIX 10 AM: $1273.45

NY PRICING AT THE EXACT SAME TIME. 1275.20???

For comex gold:

DECEMBER/

 NUMBER OF NOTICES FILED TODAY FOR DECBER CONTRACT:  76 NOTICE(S) FOR 7600 OZ.

TOTAL NOTICES SO FAR: 3012 FOR 301,200 OZ (9.368 TONNES)

For silver:

DECEMBER

213 NOTICE(S) FILED TODAY FOR

1,065,000 OZ/

Total number of notices filed so far this month: 4605 for 23,025,000 oz

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Bitcoin: BID $11,238/OFFER $11,289, up $483 (morning) 

BITCOIN : BID $11,501 OFFER: $11,558 // UP $747 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest SURPRISINGLY ROSE BY A HUGE 3174 contracts from 187,033 RISING TO 191,302 DESPITE FRIDAY’S CONTINUAL DRUBBING OF SILVER  WHICH SAW OUR METAL FALL ANOTHER 8 CENTS AND NOW WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD SURPRISINGLY NO REAL COMEX LIQUIDATION AS WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER LARGE NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE :  2881 EFP’S FOR MARCH (AND ZERO FOR DEC AND OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 2881 CONTRACTS.   I GUESS WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. FRIDAY WITNESSED 5387 EFP’S FOR SILVER ISSUED.

ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF DECEMBER:  8268 CONTRACTS

RESULT: A HUGE SIZED RISE IN OI COMEX DESPITE THE CONTINUAL DRUBBING IN SILVER PRICE: FRIDAY IT FELL BY ANOTHER  8 CENTS. HOWEVER  WE HAD ALL OF OUR COMEX LONGS WHICH EXITED OUT OF THE SILVER COMEX  TRANSFERRED THEIR OI TO LONDON THROUGH THE EFP ROUTE:  FROM THE CME DATA 2881 EFP’S  WERE ISSUED TODAY  FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. IN ESSENCE THE  DEMAND FOR SILVER PHYSICAL INTENSIFIES GREATLY. WE REALLY GAINED 6055 OI CONTRACTS i.e.  2881 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 3,174 OI COMEX CONTRACTS. AND ALL OF THIS INCREASED DEMAND (INCREASE IN OPEN INTEREST) HAPPENED WITH THE FALL IN PRICE OF SILVER BY ANOTHER 8 CENTS ON FRIDAY CLOSING AT  A LOW  PRICE OF $16.35

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.956 BILLION TO BE EXACT or 137% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DECEMBER MONTH/ THEY FILED: 213 NOTICE(S) FOR 1,065,000 OZ OF SILVER

In gold, the open interest FELL BY A LARGE 10,652 CONTRACTS DOWN TO 474,857  DESPITE THE RISE  IN PRICE OF GOLD ON FRIDAY ($5.65).  HOWEVER,  THE TOTAL NUMBER OF GOLD EFP’S ISSUED FOR MONDAY  TOTALED ANOTHER 15,773 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 0 CONTRACTS AND FEB SAW THE ISSUANCE OF 15,773 CONTRACTS. The new OI for the gold complex rests at 476,099. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE WITNESS THE HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE AMOUNT OF GOLD OUNCES STANDING FOR DECEMBER. EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK  TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD.  THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX  HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER AND ON TOP OF THAT IT IS TAKING A FURTHER 13 WEEKS TO OBTAIN PHYSICAL FROM THE POINT WHEN FORWARDS BECOME DUE. IN ESSENCE WE HAVE A NET GAIN OF 5121 OI CONTRACTS: 10,652 OI CONTRACTS LOST AT THE  COMEX  BUT  15,773 OI CONTRACTS NAVIGATED OVER TO LONDON. THE CME HAS BEEN VERY TARDY IN THEIR REPORTING OF EFP ISSUANCE.  THEY ARE IMMEDIATELY REMOVING COMEX OPEN INTEREST NUMBERS BUT DELAYING RELEASE OF EFP’S FOR 24 HOURS OR GREATER AS NO DOUBT THEY ARE NEGOTIATING WITH THE LONGS FOR A FIAT BONUS.

FRIDAY, WE HAD 15,472 EFP’S ISSUED.

 

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DECEMBER STARTING WITH FIRST DAY NOTICE:  31,245 CONTRACTS

 

Result: A HUGE SIZED DECREASE IN OI  WITH THE FAIR SIZED RISE IN PRICE IN GOLD YESTERDAY ($5.65). WE  HAD AN LARGE  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 15,773. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE REACHED THE HUGE DELIVERY MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES.  IF YOU TAKE INTO ACCOUNT THE 15,773 EFP CONTRACTS ISSUED, WE HAD A NET GAIN OPEN INTEREST OF 5121  contracts:

15,773 CONTRACTS MOVE TO LONDON AND 10,652 CONTRACTS REMOVED FROM THE COMEX.

we had:  627  notice(s) filed upon for 62,700 oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:

Today, A HUGE CHANGE in gold inventory at the GLD/ A MASSIVE DEPOSIT OF 8.56 TONNES. SEEMS OUR CROOKS HAVE RUN OUT OF GOLD TO SEND DOWN TO CHINA.

Inventory rests tonight: 848.11 tonnes.

SLV

TODAY WE HAD NO CHANGES IN SILVER INVENTORY AT THE SLV:

INVENTORY RESTS AT 319.206 MILLION OZ

end

 

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver SURPRISINGLY ROSE BY A HUGE 3174 contracts from 187,033 UP  TO 190,207 (AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE LOSS IN PRICE OF SILVER PRICE AND CONTINUAL BOMBARDMENT (A FALL OF 8 CENTS ). ON TOP OF THE RISE IN OI AT THE COMEX, OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER HUGE  2881  PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM).  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  WE HAD ZERO COMEX SILVER COMEX LIQUIDATION. IF WE ADD THE OI GAIN AT THE COMEX (3174 CONTRACTS)   TO THE 2881 OI TRANSFERRED TO LONDON THROUGH EFP’S  WE OBTAIN A NET GAIN OF A MASSIVE  6055  OPEN INTEREST CONTRACTS, ON TOP OF THE HUGE AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN DECEMBER (SEE BELOW)

RESULT: A HUGE SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 8 CENT FALL IN PRICE (WITH RESPECT TO FRIDAY’S TRADING).  BUT WE ALSO  HAD ANOTHER 2881 EFP’S ISSUED TRANSFERRING  COMEX LONGS OVER TO LONDON . TOGETHER WITH THE HUGE AMOUNT OF SILVER OUNCES STANDING FOR DECEMBER, DEMAND FOR PHYSICAL SILVER INTENSIFIES.

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)Late SUNDAY night/MONDAY morning: Shanghai closed DOWN 7.99 points or .24% /Hang Sang CLOSED UP 64.04 pts or 0.22% / The Nikkei closed DOWN 111.87 POINTS OR 0.49%/Australia’s all ordinaires CLOSED DOWN 0.08%/Chinese yuan (ONSHORE) closed DOWN at 6.6190/Oil DOWN to 57.71 dollars per barrel for WTI and 63.16 for Brent. Stocks in Europe OPENED ALL GREEN .    ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6190. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.6196 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS SLIGHTLY STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS NOT  HAPPY TODAY.(MARKETS GENERALLY  WEAK)

Read More @ HarveyOrganBlog.com

Silver’s Positive Fundamentals Due To Strong Demand In Key Growth Industries

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by Jan Skoyles, Goldcore:

Silver’s Positive Fundamentals Due To Strong Demand In Key Growth Industries

– Increased efforts in green energy and advanced technology set to boosts silver’s demand
– Four-year supply deficit set to increase due to fewer mine openings and discoveries
– Bank manipulation may be why silver under performing
– TD Securities and the Bank of Montreal expect silver to be best performing precious metal in 2018
– Growing industrial demand combined with monetary safe haven makes silver an excellent diversifier

The beauty of silver is its dual role. It is both a monetary metal and an industrial metal. Because of this investors can look to a positive few years as the metal’s fundamentals will thrive due to strong demand in major growth areas.

Over 50% of silver’s annual demand comes from industry. This is set to continue to grow as high-growth industries such as self-driving cars, green energy and health care drive demand for the precious metal.

The majority of industries are looking at improving products with technology and boosting energy efficiency. Many solutions call for silver, a tricky solution given the ongoing supply deficit.

Along with silver’s growing importance in the world of manufacturing we should also remember its importance when it comes to its role as a monetary metal. Government and central bank policies will continue to increase budget deficits and drive inflation which is positive for both gold and silver.

The tables look set to turn for a precious metal that is able to serve us both in our portfolios and our day-to-day lives.

Go silver to go green

“To go green, to do all the things we want to do as the human race gets off oil and gas, we need a ton of silver,” Keith Neumeyer, CEO of First Majestic Silver Corp

 

Silver has enormous potential in the field of technology. It is the most electrically conductive known material other than gold. Unsurprisingly gold is far too expensive to use in the majority of areas where silver makes for a viable alternative. As we find more solutions to solve energy and technology issues we will inevitably require more and more silver. Right now there is no obvious substitute for it.

Consider the drive for technological solutions in increasing populous and economically developing areas. For example, even the poorest cities have high smart-phone concentrations. So much of a smart-phone’s workings are thanks to silver. This demand is not set to go anywhere but up. Silver is a very limited commodity, mined as a by-product more often than not. As the world goes crazy to stay online, demand for silver will also go crazy.

Read More @ Goldcore.com

Venezuela Announces “the Petro” Currency Backed by Gold, Oil and Diamonds

by Rory Hall, Goldseek:

Apparently, Venezuelan President Madura is following China’s lead but instead of a subtle rollout over time as to not cause some kind of market shake up, he has decided that now is as good a time as any to announce the creation of a new digital currency, the Petro, backed by Venezuela’s gold, oil and diamond reserves.

“Venezuela is creating a digital currency to combat a financial blockade by the United States, President Nicolas Maduro announced Sunday.

The Petro will be backed by Venezuela’s oil and gas reserves and its gold and diamond holdings, the president said in his weekly television program.

“This is going to allow us to move toward new forms of international financing for the country’s economic and social development,” the president said.

The government also announced the creation of a “blockchain observatory” — a software platform for buying and selling virtual currency.

Although the president did not offer many details, analysts such as Henkel Garcia see the possibility of success as limited.

“You can build it, but trust, acceptance and use is what will determine the cryptocurrency’s success. For me, it will be quite limited. The bolivar is also backed by reserves and has no strength,” Garcia, director of consultancy Econometrica.

“Confidence in a country is going to depend on the levels of production and the wealth it generates. For example, people trust the dollar for the levels of wealth associated with it,” he said.

The announcement comes as Venezuela faces acute financing problems after creditors and ratings agencies declared the government and state-run oil firm PDVSA to be in partial default for missing interest and principle payments on bonds.” Source

The unintended consequences of U.S. sanctions are beginning to come home to roost. We have been reporting Putin’s frustration and elation regarding the sanctions against Russia, but now we see what can happen when dealing with someone without the diplomatic skills of a statesman.

“Maduro blames sanctions imposed by the United States in August barring American citizens and companies from buying any new Venezuelan government or PDVSA bonds.

Venezuela is mired in a deep economic crisis triggered mainly by a fall in crude oil prices and a drop in oil production. Petroleum is its main source of hard currency.

Over the past year, the Venezuelan bolivar has plummeted 95.5 percent against the dollar on the black market.

Virtual currency is not new for Venezuela — considered by specialists a haven for bitcoin production with minimal costs.” Source

The next question is the play against bitcoin and cryptocurrencies. Will TriEvil use this situation to launch more sophisticated sanctions, taxes and regulations against cryptocurrencies and bitcoin in particular?

“It is estimated that tens of thousands of people mine bitcoin to protect themselves from inflation — set to surpass 2,300 percent in 2018 — by exchanging earnings for dollars or more bitcoin.

In Venezuela, a the law does not expressly prohibit mining bitcoin — experts say officials are involved — but the authorities persecute those who do it for power theft.” Source

Read More @ Goldseek.com

The Fed Might “Surprise” Markets with its Hawkishness in 2018

by Wolf Richter, Wolf Street:

The tax cuts and “elevated asset prices.”

Another rate hike is baked in for the Fed’s meeting next week, which will lift the target for the federal funds rate to a range between 1.25% and 1.50%. “A majority” of economists now expect three rate hikes in 2018, up from two rate hikes just a few weeks ago, Reuters said this morning, based on its poll conducted just before the Senate passed the tax cuts.

The tax cuts are making economists rethink what the Fed will do next year. According to Reuters, “the forecast risks have shifted toward higher rates, and faster.”

But are expectations still too low? Could an increasingly hawkish Fed surprise the markets with more rate hikes?

The three rate hikes next year that economists are now expecting just put them in line with the Fed’s own projections, published well before the tax cuts had become a nearly sure thing.

“This is about just getting back to a neutral level where monetary policy is neither encouraging growth nor pushing against growth,” Brett Ryan, senior US economist at Deutsche Bank, told Reuters. The bank now is expecting four rate hikes in 2018.

“The Fed is still accommodative at the moment and we are still some ways away from the neutral fed funds rate which would in the Fed’s view be closer to 2.75%,” he said. “The Fed can hike without slowing the economy.”

What has been seeping through the Fed’s communications all year is a concern over “elevated asset prices” and that, despite the Fed’s effort to “remove accommodation,” financial conditions in the markets have not tightened.

The dollar has fallen since the rate hike a year ago, stock prices have soared, bond prices have risen, and therefore yields have fallen, including junk bond yields — signs that investors are more and more chasing after higher and higher risks. This is the definition of loosening financial conditions, the opposite of what the Fed has set out to accomplish over the past year.

Where rate hikes have become effective is with yields at the shorter end of the curve – debt with maturities of up to two years. Those yields have risen sharply, and prices have come down. But these moves have not filtered into the rest of the markets.

Inflated asset prices – and what they could do to the economy when they suffer “a sharp reversal” – made their way once again into the Fed’s communications, this time into the minutes of the last FOMC meeting:

In light of elevated asset valuations and low financial market volatility, several participants expressed concerns about a potential buildup of financial imbalances. They worried that a sharp reversal in asset prices could have damaging effects on the economy.

National Bank of Canada’s Economics and Strategy came out with a note this morning, warning that economists and the markets might be underestimating the hawkishness of the Fed next year:

Even considering the low rate of U.S. inflation, monetary policy in the world’s largest economy is arguably too loose. It’s the first time since the 1970s that real interest rates are in negative territory despite a positive output gap. Some Fed members are now even expressing concerns about financial imbalances fearing “a sharp reversal in asset prices” according to the latest minutes. Recently approved tax cuts by Congress also warrant normalizing monetary policy. As such, we believe the Federal Reserve will raise interest rates more than what markets are currently expecting in 2018.

“Markets just don’t believe the Fed can significantly tighten monetary policy,” the team, led by Stéfane Marion, Chief Economist and Strategist, wrote in the note:

The fed funds rate is expected to be below 2% by the end of 2020, in sharp contrast to the Fed’s own view that rates will be closer to 3% by then. This market view has no doubt been shaped by years of disappointing readings on both wage growth and the overall inflation rate which have seemingly eroded trust in the Fed’s ability to hit its 2% inflation target.

Both, Janet Yellen and Jerome Powell, who will succeed her in February, have been on the same page, emphasizing over and over again that the Fed should continue the “gradual” process of normalizing monetary policy.

Read More @ WolfStreet.com

It’s Not Really About Bitcoin Price Surging, It’s Fiat Currencies In Free Fall

by Joseph Young, CoinTelegraph:

According to Stefan Molyneux, a highly regarded Canadian podcast host, it is more important to recognize the free fall of fiat currencies, more so than to acknowledge the exponential growth rate of Bitcoin.

Molyneux says:

“It’s not so much that Bitcoin is going through the roof – it’s that fiat currencies are in free fall, but only Bitcoin is noticing.”

The decline of fiat currencies

For many decades, governments have had absolute control over the global finance sector and monetary policy through the fiat currency system. Through it, central banks such as the US Federal Reserve have obtained the ability to inflate the supply of reserve currencies and to manipulate the world’s most widely utilized form of money.

In an interview with Fox Business, major electronics retailer Overstock CEO Patrick Byrne stated that fiat currencies will continue to fall over the next few years, as investors and the market move onto separate money and state.

As fiat currencies decline, the only form of decentralized currency that is Bitcoin and other cryptocurrencies in the market, will eventually overtake reserve currencies.

“You think that’s a bubble? What do you think that fiat currency you carry around in your purse is? This dollar stuff, it’s just some fiat currency based on … the surplus taxing authority of the US Treasury of which I assert there is zero … It’s about time the world switches to real money. Either gold or Bitcoin,” said Byrne.

Currently, the two forms of money or assets that are not subjected to the control and manipulation of governments are Bitcoin and gold. But, as demonstrated by the Indian government in late 2016, because of its physical attributes, gold can be confiscated and repossessed by the authorities at their will.

With Bitcoin, confiscation of user funds and assets is not possible, if users store their Bitcoin on a non-custodial platform in which they have full control over their private keys and funds.

One major advantage Bitcoin has over gold is its transportability. Gold is a viable store of value given that investors can store large amounts of money in the asset. But, it is difficult to transfer gold, especially through borders.

Bitcoin will continue to prosper as fiat currencies decline

Considering that Bitcoin remains as the only viable alternative to fiat currencies, the decline of government-issued money will continue to lead more investors and general consumers into the Bitcoin market.

Read More @ CoinTelegraph.com

Transparency on Wall Street: SEC Chair Raises Weak Defenses

by Pam Martens and Russ Martens, Wall St On Parade:

On November 8, the Securities and Exchange Commission (SEC) Chairman, Jay Clayton, delivered a speech at the Practising Law Institute’s 49thAnnual Institute on Securities Regulation. His focus was transparency on Wall Street and he had this nugget of wisdom to share with the audience:

“Looking back at enforcement actions, a common theme emerges – where opacity exists, bad behavior tends to follow. As Joseph Pulitzer said: ‘There is not a crime, there is not a dodge, there is not a trick, there is not a swindle, there is not a vice which does not live by secrecy.’ The remainder of my remarks will concentrate on topics that have proven over time to be fertile ground for fraud on investors. The SEC may not yet have policy or rulemaking answers in these areas, but we are on the lookout for ways to fight the type of opacity that can create an environment conducive to misconduct.”

The SEC was created to police Wall Street under the Securities Exchange Act of 1934. The legislation came on the heels of the U.S. Senate holding three years of hearings that showed Wall Street to be a cesspool of opaque self dealing and collusion that had led to the 1929 stock market collapse and ensuing Great Depression. The SEC has now had 83 years to hone its investigative skills and techniques. And yet, it wore blinders in the runup to the epic Wall Street crash of 2007-2009, which was caused by the same type of corruption that was ferreted out by the U.S. Senate after the 1929 crash. Its blinders remain securely in place.

Wall Street Journal reporter, Scott Patterson, released a 354-page book in 2012 that took a hard look at U.S. market structure. It was titled: Dark Pools: High Speed Traders, A.I. Bandits, and the Threat to the Global Financial System. On page 339 of his book, Patterson writes in the notes section: “The title of this book doesn’t entirely refer to what is technically known in the financial industry as a ‘dark pool.’ Narrowly defined, dark pool refers to a trading venue that masks buy and sell orders from the public market. Rather, I argue in this book that the entire United States stock market has become one vast dark pool. Orders are hidden in every part of the market. And the complex algorithm AI-based trading systems that control the ebb and flow of the market are cloaked in secrecy. Investors – and our esteemed regulators – are entirely in the dark because the market is dark.” (The italics in this excerpt are as they appear in the hardcover book.)

The actual dark pools operated by some of the biggest banks on Wall Street are one of the most opaque parts of Wall Street. They are, effectively, unregulated stock exchanges run internally by the same serially charged banks that have engaged in collusion in other markets. And yet, the SEC has taken no action to outlaw them, even looking the other way as they trade the shares of their own bank. (See Wall Street Banks Are Trading in Their Own Company’s Stock: How Is This Legal?)

Further enshrining opacity and corruption on Wall Street is that the SEC has failed miserably in using its bully pulpit to end Wall Street’s private justice system. This journey into judicial darkness began in the 1980s. After tens of millions of dollars were spent by Wall Street and its lobbyists, the U.S. Supreme Court gave a green light to the practice in its 1987 decision, Shearson/American Express v. McMahon.

Since then, cases filed against Wall Street firms by both customers and workers, which could serve as an early warning system to patterns of fraud if aired in a courtroom open to the public and press, have been moved into the dark shadows of a private justice system that claimants believe is rigged against them.

Read More @ WalStOnParade.com

The War on Gold Intensifies: It Betrays The Elitists’ Panic And Coming Defeat – Part 1

They are attempting to prevent a run on their banks.

by Stewart Dougherty, Investment Research Dynamics:

Dictatorship (noun):  Definition #3:   absolute power or authority (Websters);
Def. #2:   absolute, imperious or overbearing power or control (Random House);
Def. #3:   Absolute or despotic control or power (American Heritage);
Def. #3:  Absolute or supreme power or authority (Collins English Dictionary);
Def. #1:  A type of government where absolute sovereignty is allotted
to an individual or small clique (Wikipedia).

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained, you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” Sun Tzu, The Art of War

In recent weeks, the War on Gold, which is a subset of the broader War on Human Freedom, has sharply intensified, with massive, multi-billion dollar naked short price raids now being launched on a weekly and even daily basis by the criminal, state-sponsored price manipulators. This escalation proves the supreme importance to the Deep State financial elite of the maintenance of their gold price dictatorship, which is a vital component of their long term, systemic campaign of financial plunder.

 

The elitists have no problems whatsoever with stratospheric stock and bond prices; 5,000 year low interest rates; $450 million Da Vinci’s; $250 million private homes; $50,000,000 annual salaries for circus masters, whose role in keeping the masses distracted and dumb is vital; $1.9 million Aston Martins; $100,000 Air Jordan sneakers, or any of the other prices that have now gone into outer space.

But there is one thing they will not accept: an honest, free market price for gold. Because while all debauchery under the sun is permitted and encouraged in the Castle of Fraud and Corruption they have constructed and in which they revel, one thing is strictly prohibited: the utterance of truth. Being monetary truth when free to speak, gold is their deadliest enemy. Therefore, it is silenced, in the same way truth tellers are silenced in all dictatorships.

The vast majority of people, aside from a small, enlightened minority who refuse to poison their minds by ingesting mainstream media (MSM) fake news, propaganda and brainwashing, do not yet realize what they are up against in the wars that have been declared against them, and are therefore at serious risk. For those who wish to survive the wars, there has never been a greater need to know the enemy and know yourself.

As the gold price war becomes manic, so has the MSM’s anti-gold propaganda campaign, with their attempts to smear gold now a clinical obsession.

In a prime example of their over-the-top anti-gold propaganda, on 10 November 2017, the Financial Times, a long-time Deep State bullhorn and puppet, ran an article entitled, “Gold is the new cocaine for money launderers.” In this screed, the author beat the dead horse of the NTR Metals gold import scheme. This operation, whose total dollar yield was an infinitesimal fraction of the massive sums stolen by the financial Deep Statists in their forty year gold price manipulation crime, was already the subject of an over-dramatized Bloomberg Businessweek propaganda piece published on 9 March 2017, entitled “How to Become an International Gold Smuggler.” Apparently, the MSM is running so short of new material with which to try to demonize gold, that it is now forced to recycle old, stale non-stories to keep the smear machine going.

In the article, the MSM propagandist states such things as: 2017 has seen, according to his one time Goldman Sachs source, a “dramatic crash in [physical gold coin] demand,” that interest in gold coins is linked to “political conservatism, or anarcho-libertarianism” and “end of the world right wing sentiments,” that gold has been implicated in a “conspiracy to commit money laundering,” that gold is “financed by people in the narcotics trade,” that it comes from “illegal mines and drug dealers in Peru, Bolivia and Ecuador,” that “the federal authorities assume the NTR Metals [case] represented only a fraction of illegally sourced and financed gold,” that therefore the US attorney is broadly investigating the gold industry, that gold is “produced by exploited workers,” that “crude [gold] extraction techniques create serious and lasting environmental damage,” that gold plays an important part in “tax evasion,” that it is related to American gun sales, which the author abhors; that “drug dealers [use] gold imports as a way of laundering their proceeds,” and that “they came to realize that illegal gold [is] an intrinsically better business” than drug dealing; to name but a few of the aspersions cast against gold in the short article. As we can see, when it comes to their smear jobs, the MSM flings at the wall all the mud it can fit in its hands, hoping that some of it might stick.

As is always the case with the MSM’s consistently negative, biased and dishonest reporting on gold, no mention was made in the article of the Deep State financial elite’s criminal gold price manipulation fraud that has been perpetrated non-stop for nearly forty years and that has resulted in a massive, $1,000,000,000,000.00+ theft from its victims. This is because the MSM is the Deep State’s in-house public relations agency, whose job is to whitewash the elitists’ crimes, no matter how egregious they are.

But buried in the article was an important clue that the Deep Statists are concerned they are losing the War on Gold, which we will further explore later in the article. It turns out that the Deep Statists’ paranoia about and rage toward gold might be entirely justified, because more than ever in the past 37 years, gold is poised to tell the world what it knows, and this will absolutely annihilate them.

Many people are completely baffled as to why, with so many serious fiscal, financial, monetary, economic, social, and geopolitical problems in the world, the Deep Statists remain so mono-maniacally fixated on demagogically denigrating gold and controlling its price.

The answer is that the Deep Statists cannot, under any circumstances, allow the price of gold to replicate the surging price of Bitcoin and other cryptocurrencies. If the gold price genie were to get out of the bottle, becoming international news in the process no matter how much the MSM might try to suppress it, it would spur a gold buying stampede that would cause a flood of money to pour out of bank accounts and into physical precious metals. $325+ billion worldwide now resides in cryptocurrencies, a highly specialized and complex product class. In the right set of circumstances, many multiples of that amount could incrementally flow into gold, a simple product that has been innately understood for millennia by human beings all over the globe.

Already fragile, the banking system cannot withstand a large scale withdrawal of funds. Being finite and in short supply, incremental demand for physical gold would result in immediate and sustained price gains, creating a positive feedback loop in the market place. As people watched the price go up, more and more of them would want to jump on the band wagon and participate in the gains, which is exactly what has happened in the cryptocurrency market.

If interest in gold goes mainstream, then basic supply fundamentals indicate the price would have to rise by thousands of dollars per ounce to even approach what might be considered overbought and/or bubble territory. Which is exactly what has happened to Bitcoin, whose price has exploded to over $10,500 as of today, 29 November 2017.

In the United States, the latest Federal Reserve Board tally of Household and Non-profit Organization (much of which is private) wealth totals $96.2 trillion. If a miniature, 1% sliver of this amount, $962 billion, attempted to find its way into the physical gold market, it would represent incremental demand, at $1,300 per ounce, of 740 million ounces. Not even a small fraction of this incremental demand would be available in the physical gold market at this time, given that it already operates at a supply / demand equilibrium. The gold price would have to surge in order to flush out supplies from current gold owners, whose hands have proven to be, and are likely to remain strong. We believe it would take years for incremental demand of this magnitude to be filled, even at much higher prices. Please keep in mind that this example relates to the United States, alone; there are additional, vast stores of private wealth all over the world, all of which would almost certainly be activated in unison by a run to gold.

With the right spark, the same viral, Social Media-enhanced demand that has come to cryptocurrencies could come to gold. The Deep Statists know it, and the ghostly whites of their eyes now glow eerily and blinkingly across the dark battlefield of Liberty, in the senseless war they provoked and are going to lose.

While there are now hundreds of cryptocurrencies, physical gold is physical gold, and cannot be replicated or conjured out of nothing. There will be no endless stream of new ICOs for genuine, physical gold, because gold is what it is and always
will be. This means that funds flowing into gold will be forced into the one and only physical gold market that already exhibits tight, inflexible supply. This further means that the upward price pressure on gold could become volcanic if a run starts.

A steadily increasing number of people will want to get in on the “new Bitcoin,” a bizarre paradox given that gold is as old as time, and will soon realize that gold possesses virtues Bitcoin does not, given that it is real, not digital and abstract; that owners can personally possess and store it in physical form; that it will survive any kind of electric grid or Internet disruption that might occur; that it cannot ever be hacked; that it is the epitome of private, quiet wealth; that it is actually quite beautiful to behold; and that it was not and cannot be made by man, only by God, who does not appear to have any interest in making any more of it.

To date, in order to prevent a surge in physical gold demand from happening, the Deep Statists have created various forms of transparently fake gold, such as electronic gold futures, options and non-auditable ETFs and EFPs. These fake gold products have siphoned funds away from real, physical gold, which cannot be created out of the nothing the way the imposter electronic gold products can be. Increasingly, people are learning that there are no substitutes for physical gold.

More, we find it interesting that while there have been certain highly publicized condemnations of cryptocurrencies, such as J. P. Morgan Chase CEO Jamie Dimon’s comment that Bitcoin is a “fraud,” the financial authorities in the west have done little to nothing to shut down the crypto market. They seem to be just fine with $10,500 Bitcoin, but will stop at nothing to prevent $1,300 gold. Today’s (29 November) market action is a case in point.

The reason is that monetary elitists fully approve of cryptocurrencies, because this the new form of fiat currency the western banks intend to issue. Mass adoption of cryptocurrencies is the necessary forerunner to the elimination of cash, a well-known and important agenda for the financial elite. By issuing their own cryptocurrencies, and/or co-opting Bitcoin and other private cryptos via regulation and edict, central bankers can continue their tradition of controlling the money supply. A population that has learned the value of owning and become adept at trading physical gold would prevent central banks from continuing to use fiat currencies as economic, political and societal control mechanisms. It should be no surprise that they loathe gold so much; in its honesty and integrity, it is the exact antithesis of everything they stand for, are, and do.

Some people argue, “Even if people run to gold, their funds will still remain within the banking system, so the bankers aren’t worried about this happening.” In our opinion, this is wrong.

Fiat currency used to buy precious metals will move from personal and business bank accounts, to gold dealer accounts, to gold wholesaler accounts; and then to a variety of sovereign mint, gold precious metals refiner, gold miner and other gold supplier accounts, a large percentage of which are international.

A bank that hosts a deposit account used to purchase physical gold has no assurance whatsoever that the buyer’s funds will transfer into another personal or business account managed by it. In all likelihood, the funds will disappear from the host bank and not return. Ultimately, the likelihood is also high that a portion of the funds, potentially significant, will disappear from the country’s banking system altogether, given the global nature of gold mining, refining, minting and fabrication. Therefore, bankers regard a run to gold as a severe, direct threat to them, which is why they do everything in their power to discredit it and crush its price. They are attempting to prevent a run on their banks.

Read More @ InvestmentResearchDynamics.com