Tuesday, June 22, 2021

VALENTINE’S DAY/GOLD ROCKETS NORTHBOUND BY $27.40 TO $1355

by Harvey Organ, Harvey Organ Blog:

SILVER UP BY 35 CENTS TO $16.92/USA 10 YR YIELD UP TO 2.915%/THE 30 YR BOND YIELD: 3.17%/USA/YEN CRASHES TO 106.98/DOW RISES BY OVER 200 POINTS SAVED BY HUGE DOWNDRAFT OF VIX/CORE INFLATION RISES/RETAIL SALES PLUMMET

GOLD: $1355.40 UP $27.40

Silver: $16.92 UP 35 cents

Closing access prices:

Gold $1350.60

silver: $16.86

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: $1338.48 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1334.60

PREMIUM FIRST FIX: $3.78

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SECOND SHANGHAI GOLD FIX: $1332.29

NY GOLD PRICE AT THE EXACT SAME TIME: $1333.50

discount of Shanghai 2nd fix/NY:$1.20

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LONDON FIRST GOLD FIX: 5:30 am est $1330.75

NY PRICING AT THE EXACT SAME TIME: $1331.00

LONDON SECOND GOLD FIX 10 AM: $1336.25

NY PRICING AT THE EXACT SAME TIME. $1333.80 ???

For comex gold:

FEBRUARY/

NUMBER OF NOTICES FILED TODAY FOR FEBRUARY CONTRACT: 0 NOTICE(S) FOR NIL OZ.

TOTAL NOTICES SO FAR:1783 FOR 178300 OZ (5.458 TONNES),

For silver:

FEBRUARY

3 NOTICE(S) FILED TODAY FOR

15,000 OZ/

Total number of notices filed so far this month: 307 for 1,535,000 oz

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Bitcoin: BID $9168/OFFER $9240: DOWN $682(morning)

Bitcoin: BID/ $9208/offer $9277: up $724  (CLOSING/5 PM)

 

end

There are 4 tools used by the manipulators to raise stock prices while knocking down gold and silver:

  1. increasing the value of the USA dollar index
  2.  shorting yen  (buying usa/yen) which is your carry trade ie. buy stocks, short yen gold
  3.  hammer vix (the volatility index) which states that everything is OK. ie. short volatility and gold buy stocks
  4.  contain the 10 yr USA treasury yield below 2.80%

we are beginning to see fractures in all of them.  today it was the yen that rose and that drove gold/silver higher.

Let us have a look at the data for today\

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In silver, the total open interest FELL BY A FAIR SIZED 1455 contracts from 195,511  FALLING TO 194,056 WITH  YESTERDAY’S TINY  3 CENT LOSS IN SILVER PRICING.  WE  HAD MINIMAL COMEX LIQUIDATION. HOWEVER, WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  2724 EFP’S FOR MARCH AND AND 143 EFP’S FOR MAY AND ZERO FOR ALL  OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 2867 CONTRACTS.  WITH THE TRANSFER OF 2867 CONTRACTS, 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. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S. THE 2867 CONTRACTS TRANSLATES INTO 14,33 MILLION OZ DESPITE  WITH THE CONTINUAL DROP IN OPEN INTEREST IN SILVER AT THE COMEX.

ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF FEBRUARY:

35,121 CONTRACTS (FOR 11 TRADING DAYS TOTAL 35,121 CONTRACTS OR 175.605 MILLION OZ: AVERAGE PER DAY: 3192 CONTRACTS OR 15.964 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  175.6 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 25.14% OF ANNUAL GLOBAL PRODUCTION

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:  423.94 MILLION OZ.

ACCUMULATION FOR JAN 2018: 236.879 MILLION OZ

RESULT: A FAIR SIZED LOSS IN OI SILVER COMEX WITH THE TINY  3 CENT GAIN IN SILVER PRICE.  WE HOWEVER HAD A GOOD SIZED EFP ISSUANCE OF 2867 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER . FROM THE CME DATA 2867 EFP’S  FOR  MONTHS MARCH AND MAY WERE ISSUED FOR TODAY  FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS.   WE GAINED  1412 OI CONTRACTS i.e. 2867 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 1455  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE TINY FALL IN PRICE OF SILVER OF  3 CENTS AND A CLOSING PRICE OF $16.57 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A FAIR AMOUNT OF SILVER STANDING AT THE COMEX.

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.974 BILLION TO BE EXACT or 139% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT FEBRUARY MONTH/ THEY FILED: 3 NOTICE(S) FOR 15,000 OZ OF SILVER

In gold, the open interest  ROSE BY A HEALTHY 1595 CONTRACTS UP TO 511,745 WITH THE FAIR SIZED RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($3.40). HOWEVER, IN ANOTHER DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED FOR TODAY AND IT TOTALED A HUGE SIZED  6481 CONTRACTS OF WHICH  APRIL SAW THE ISSUANCE OF 6481 CONTRACTS AND  JUNE SAW THE ISSUANCE OF 0 CONTRACTS AND THEN ALL OTHER MONTHS ZERO.    The new OI for the gold complex rests at 511,745. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE INCREASE IN GOLD COMEX OI  TOGETHER WITH  THE TOTAL AMOUNT OF GOLD OUNCES STANDING FOR FEBRUARY COMEX. 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 (BIG RISE IN BOTH GOFO AND SIFO) AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE TODAY DESPITE YESTERDAY’S TRADING IN GOLD,  WE HAVE A GAIN OF 8076 CONTRACTS: 1595 OI CONTRACTS INCREASED AT THE COMEX AND A HUGE SIZED  6481 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.(8076 oi gain in CONTRACTS EQUATES TO 25.11 TONNES)

YESTERDAY, WE HAD 3381 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF FEBRUARY STARTING WITH FIRST DAY NOTICE: 108,758 CONTRACTS OR 10,875,800  OZ OR 338.28 TONNES (11 TRADING DAYS AND THUS AVERAGING: 9,887 EFP CONTRACTS PER TRADING DAY OR 988,700 OZ/ TRADING DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 11 TRADING DAYS: IN  TONNES: 338.3 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2200 TONNES

THUS EFP TRANSFERS REPRESENTS 338.30/2200 x 100% TONNES =  15/37% OF GLOBAL ANNUAL PRODUCTION SO FAR IN FEBRUARY ALONE.

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  971.78 TONNES

ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018: 653.22  TONNES

Result: A  FAIR SIZED INCREASE IN OI AT THE COMEX WITH THE FAIR SIZED GAIN IN PRICE IN GOLD TRADING YESTERDAY ($3.40). IT IS WITHOUT A DOUBT THAT MANY OF THE DEPARTED COMEX LONGS  RECEIVED THEIR PRIVATE EFP CONTRACT  FOR EITHER  APRIL OR JUNE. HOWEVER, WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 6481 AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE ALSO OBSERVED A HUGE DELIVERY MONTH FOR THE 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 6481 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 8076 contracts ON THE TWO EXCHANGES:

6481 CONTRACTS MOVE TO LONDON AND  1595 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 25.11 TONNES).

we had: 0 notice(s) filed upon for NIL oz of gold.

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

GLD

WITH GOLD UP $27.40 TODAY, THE CROOKS DECIDED THAT IT WAS BETTER TO ADD TO INVENTORY/A DEPOSIT OF 2.95 TONNES

Inventory rests tonight: 823.66 tonnes.

SLV/ 

NO CHANGES IN SILVER INVENTORY AT THE SLV/ AGAIN WITH TODAY’S HUGE RISE IN SILVER PRICE:   NO CHANGE IN INVENTORY

/INVENTORY RESTS AT 314.045 MILLION OZ/

can someone please explain why GLD behaves differently to SLV????

end

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

1. Today, we had the open interest in silver FELL BY A FAIR 1455  contracts from 195,511 DOWN TO 194,056 (AND now A LITTLE FURTHER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE  THE TINY SIZED FALL  IN PRICE OF SILVER  (3 CENTS WITH RESPECT TO  YESTERDAY’S TRADING).   OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER GOOD 2724 PRIVATE EFP’S FOR MARCH AND 143 EFP CONTRACTS OR MAY  (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM) AND 0 EFP’S FOR ALL OTHER MONTHS .  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD SOME COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE  OI LOSS AT THE COMEX OF  1455 CONTRACTS TO THE 2867 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A GAIN OF  1442  OPEN INTEREST CONTRACTS .  WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ ON THE TWO EXCHANGES:  7.06 MILLION OZ!!!

RESULT: A FAIR SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE SMALL SIZED FALL OF 3 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING ). BUT WE ALSO HAD ANOTHER GOOD 2867 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD  SIZED AMOUNT OF SILVER OUNCES STANDING FOR FEBRUARY, DEMAND FOR PHYSICAL SILVER INTENSIFIES AS WE WITNESS MAJOR BANK SHORT COVERING ACCOMPANIED BY INCREASES IN GOFO AND SIFO RATES INDICATING SCARCITY.

(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 TUESDAY night/WEDNESDAY morning: Shanghai closed UP 14.20 points or 0.45% /Hang Sang CLOSED UP 676.07 or 2.27% / The Nikkei closed DOWN 90.51 POINTS OR .43%/Australia’s all ordinaires CLOSED DOWN 0.28%/Chinese yuan (ONSHORE) closed DOWN at 6.3444/Oil DOWN to 58.79 dollars per barrel for WTI and 62.55 for Brent. Stocks in Europe OPENED DEEPLY IN THE GREEN  .   ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.3444. OFFSHORE YUAN CLOSED UP AGAINST  THE ONSHORE YUAN AT 6.3331//ONSHORE YUAN A LITTLE STRONGER AGAINST THE DOLLAR/OFF SHORE A LOT STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS A LITTLE STRONGER AGAINST ALL MAJOR CURRENCIES EXCEPT  CHINA YUAN.  CHINA IS  HAPPY TODAY STRONGER MARKETS IN CHINA 

Read More @ HarveyOrganBlog.com

CHINA TAKES IT’S REVENGE ON YUAN SHORTS BY RE INTRODUCING PREVIOUS POLICY AND THEY WERE DECIMATED: GOLD AND SILVER THE BIG WINNERS

by Harvey Organ, Harvey Organ Blog:

THE DOLLAR FALTERS:/ GOLD UP $18.65 TO $1206.70/SILVER UP 26 CENTS TO $14.83/SILVER’S OPEN INTEREST FOR MONDAY WILL BE A DILLY/ITALY THREATENS TO STOP EU FUNDING AS THEY WANT ALL OF EUROPE TO SHARE IN MIGRANT CRISIS/HUGE NUMBER OF FOREIGNERS DUMPING ITALIAN BONDS/AND MORE SWAMP STORIES FOR YOU TONIGHT

GOLD AND SILVER GET A REPRIEVE WHEN THE CHINESE AND USA ANNOUNCE A ROAD MAP TO TRADE AGREEMENTS

by Harvey Organ, Harvey Organ Blog:

GOLD UP 20 CENTS TO $1177.25 AT COMEX CLOSING TIME/SILVER DOWN 4 CENTS TO $14.65/ HOWEVER NEWS OF THE ROADMAP OCCUR AFTER COMEX CLOSING: SO ACCESS MARKET CLOSE: IN GOLD $1184.70/SILVER CLOSES AT $14.83

GOLD: $1177.25 UP $0.20 (COMEX TO COMEX CLOSINGS)

Silver: $14.65 DOWN 4 CENTS (COMEX TO COMEX CLOSINGS)

Closing access prices:

Gold $1184.70

silver: $14.83

ANOTHER HUGE QUEUE JUMP AT THE GOLD AS BANKERS ARE DESPERATE TO FIND PHYSICAL GOLD

by Harvey Organ, Harvey Organ Blog:

GOLD UP $4.00 TO $1494.50//SILVERUP 17 CENTS TO $17.59//ANOTHER HUGE QUEUE JUMP AT THE GOLD AS BANKERS ARE DESPERATE TO FIND PHYSICAL GOLD//SUPPOSEDLY WE HAVE A BREXIT DEAL..LET US SEE HOW THIS PLAYS OUT//ANOTHER HUGE POMO AS LIQUIDITY DRIES UP//COLLATERAL RATE REMAINS ELEVATED AT 2.02% AND THIS IS HIGHER THAN THE FED’S RATE

The Most Precious Metal Bullish Quote Ever

by Andy Hoffman, Miles Franklin:

For years, I deemed them “horrible headlines”; and recently, “PiMBEEB” – or Precious Metal bullish, everything-else-bearish.  But any way you slice it, the sum total of the global political; economic; social; and most of all, monetary situation – in which, a handful of unelected sociopaths, utilizing a “financial printing press,” garner 99{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of the world’s wealth and power – has never been more conducive to the end of the mad, Frankenstein monster-like experiment that spawned it.  I.e., the Flintstones-like monetary system of “fiat currency” – in which all governments; commandeered by the bankers, billionaires, and oligarchs that own them; destroy the cornerstone of successful economic activity, and freedom.  I.e., SOUND MONEY.

After 1,000 years of monetary repression, technology has finally caught up to the “inflation thieves” – as the combination of the internet and cryptography will now enable money to be transmitted peer-to-peer, without the dilution, regulation, and strangulation of government control.  Which, in light of the imminent SegWit activation this afternoon – i.e., the “gold Cartel’s worst nightmare” – will enable the Bitcoin network to commence an era of innovation so dramatic, and “lightning” fast (that’s an inside joke to Bitcoiners) – that adoption is certain to take off parabolically, in the very near-term.  In other words, per the title of yesterday’s MUST LISTEN Audioblog, we are rapidly approaching the “ultimate monetary death cross,” when the “99{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}” realize that together, armed with nothing but their computers, can take out the 1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} – simply by eschewing their fiat toilet paper, with decentralized, unregulatable cryptocurrency.

In light of my professional responsibility – of spreading monetary, and financial market, truth; which in essence, has morphed into a labor of love, in the pursuit of the destruction of fiat currency; I have not been more excited, or optimistic, in my entire career.  Not to mention, the large financial investment I have in Precious Metals that I am more excited about than ever, given that I have used this summer’s Cartel-created “historic valuation anomalies” to “high-grade” my portfolio – by taking advantage of the lowest-ever numismatic premiums to increase both the “floor” and ceiling” of my PM portfolio.  And not just for the 100-plus year-old coins I acquired, but the limited-edition RCM “call of the wild” coins selling at barely above the price of generic Maple Leafs.

As for said “PiMBEEB,” never before – at least, since the heart of the 2008 crisis, when global debt was half of what it is today – have so many political, economic, and monetary situations portended the historically overdue crisis the powers that be have so desperately attempted to avert – particularly, since the “BrExit times ten” Trump victory – via unprecedented money printing, market manipulation, and propaganda.  For example, yesterday’s shocking disclosure that the Federal Reserve’s “Labor Market Conditions Index” – which for years, was considered Janet Yellen’s most reliable job market indicator – was discontinued.  Quite obviously, due to the fact that, for anyone who has been watching, it relentlessly portrays a labor market far weaker than the “strong” one represented by rigged NFP “headline numbers” like last Friday’s.

Be it purposefully or inadvertently, the powers that be have created “dotcom valuations in a Great Depression Era” and, from an inflation-adjusted perspective, the “most undervalued Precious Metal prices ever.”  This, at a time when Central banks are printing more “money” than ever, just as Bitcoin adoption starts to take off.  In other words, the perfect “monetary storm”; in which, the exodus from historically overvalued, fiat currency based assets, into historically undervalued “scarcity assets” will ultimately, be unprecedented in history; particularly, into the “twin destroyers of the fiat regime,” Precious Metals and Bitcoin.

Today alone, we’re watching America initiate wars – in nearly all instances, unprovoked – on both allies and “enemies” alike.  Be it “traditional,” propaganda-created enemies like Russia, Iran, and North Korea; or “trade” enemies like China; Mexico; and according to Donald Trump, Canada and Germany; America appears hell-bent on creating as much conflict as possible, with as many “opponents” as it can find.  Which, anyone with an even modest knowledge of history knows to be the tell-tale sign of a dying empire.  In America’s case, one where debt has replaced wealth; “service” has replaced manufacturing; socialism has usurped entrepreneurship; dependence has co-opted self-sustenance; and self-interest has replaced community.

Throw in the monetary destruction wrought by the ill-fated, historically disproven attempts by the “1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}” to retain the cancerous status quo with the “reserve currency” printing press; which potentially, could explode during the upcoming “debt ceiling” crisis; and we’re talking about a very strong likelihood that the monetary reset guaranteed to engulf the world in the coming years will negatively impacting America, on a relative basis, more than any other nation.  Which is why, more than ever, the necessity to shed overvalued, dollar-denominated assets for real items of value – like historically undervalued Precious Metals – has never been more urgent.

That said, no “PiMBEEB” action or event I have seen or heard, so perfectly describes why I see little, if any downside in today’s historically undervalued Precious Metals market.  And to the contrary, unprecedented upside potential, as the confluence of ragingly bullish supply/demand fundamentals and the inevitable destruction of the “New York Gold Pool”; not to mention, the fiat-killing power of the Bitcoin revolution; have created, in my view, one of the best risk/reward trade-offs in investment history.  This, being a quote from none other than the self-proclaimed “King of Debt” – who just happens to double as the President of the United States – in an interview last week.

Read More @ MilesFranklin.com

A Silver Price Manipulation Primer

by Craig Hemke, Sprott Money:

It has been a long ten years, but it seems that the investing world is finally beginning to realize that the globally-recognized prices of gold and silver are managed and manipulated by the Bullion Banks, which operate as market makers within the fraudulent fractional reserve and digital derivative pricing scheme.

Actually, if you understand this, then the price action often makes sense. If you view the price charts from the perspective of a bullion bank trader, then you can see where technical analysis is used against you, the regular trader/investor. At my site TF Metals Report, we call this “Manipulation Analysis”, and it serves us all quite well. Let’s take recent action as your latest example.

GOLD DOWN 55 CENTS TO $1211.85/SILVER DOWN 15 CENTS TO $15.31

by Harvey Organ, Harvey Organ Blog:

ASIAN AND EUROPEAN BLOODBATH DUE TO TURKISH LIRA PROBLEMS AS THE LIRA RISES TO 6.50 AT ONE POINT: THE GLOBE IS EXTREMELY WORRIED ABOUT CONTAGION ESPECIALLY ITALIAN BANKS WHICH HAVE TREMENDOUS EXPOSURE TO THE TURKISH FAILURE/THER RUSSIAN ROUBLE COLLAPSES AS WELL WITH THE RUSSIAN PRIME MINISTER DECLARING THAT TRUMP’S SANCTIONS AND ATTACK ON RUSSIAN BANKS IS AN ACT OF ECONOMIC WAR: LET’S SEE WHAT RUSSIA’S NEXT ACTION WILL BE/MORE SWAMP STORIES FOR YOU TONIGHT: LOTS TO READ TONIGHT AND OVER THE WEEKEND

Keiser Report: Time has run out . . . again (E1310)

from RT:

In the second half, Max interviews Dan Collins of TheChinaMoneyReport.com about ‘grey rhinos’ in the economy, the disastrous APEC meeting in Papua New Guinea and the 50 million empty homes in China.

Is The COT Report Still Valid?

by Ted Butler, Silver Seek:

There can be little question that there has been a literal explosion in awareness and public commentary focusing on the Commitments of Traders (COT) Report and the analysis of silver and gold (and other markets) in accordance with futures market positioning. No doubt the interest has been generated by the reliability of the COT market structure approach over the long term, but also by the recent extreme and unprecedented massive size of the short positions of the managed money traders in gold and, particularly, in silver. The managed money short position in COMEX silver futures is now nearly 50% larger than it was at the previous record peak in April.

Immutability And Timelessness, In The Dawning Of The Fintech Age

by Andy Hoffman, Miles Franklin:

2,500 years ago, the Greek philosopher Heraclitus wisely espoused, “the only thing that is constant is change.”  Which, in the world of investing, could not be truer – particularly today, as the pace of technological innovation accelerates at an unprecedented pace.  The problem is, that while technology is generally speaking a good thing, not all technology is utilized for favorable purposes; in many cases, in stark contrast to the best interest of the world’s “99{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}.”  To that end, the foundation of today’s technologically exploding world – its monetary system – is still based on an archaic, fraudulent fiat Ponzi scheme that is rotting the world’s finances and economy from within, for the benefit of a handful of politicians, bankers, lobbyists and billionaires.

Frankly, industrial technology is starting to resemble the world of Star Trek, whilst monetary “technology” is closer to the Flintstones.  And now that “fintech,” or financial technology, has enabled bankers to maniacally control the prices of “currencies”; as well as the “markets” they trade in; and, of course, the “barometers” of progress mankind uses to “check” monetary abuse, like gold and silver – the wealth disparity between the “99{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}” and “1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}” has exploded to politically, geopolitically, and socially untenable levels.  Not to mention, global economic activity has been decimated by oversupply; whilst dramatically increasing the cost of living, and creating the largest, parabolically-rising debt edifice in history.  This is why, for all the excitement about new technology, the world is not yet able to truly advance; and why, given the exploding pace of technological growth and information dissemination, the historic “reset” of the monetary system required to enable advancement must occur sooner rather than later – in the process, catalyzing one of the greatest wealth transformations in global history.

The way I see it, the biggest losers will be the equally archaic stock and bond markets; perhaps not in nominal terms, as Central banks desperately print money to maintain the rapidly dying illusion that “all’s well”; but certainly, in real terms.  More importantly, I believe the very concepts of stocks and bonds are slowly being phased out, given how detrimental they have become to the global economy; and particularly, the world’s “99{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}.”  I mean, when one considers just how much fraud goes into the process of issuing “securities” – from rigged accounting, regulatory agencies, and financial markets; to the insider trading benefiting the “1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}”; to the debt piled on, at parabolically rising rates, to “buy back” said “equity” – again, benefiting the “1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}”; to their monetization by Central banks – in some cases, like the Japanese and Swiss, blatantly so – again, benefiting the “1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}”; it’s difficult to believe that in the age of Artificial Intelligence, Driverless Cars, and Crypto-currency, a handful of unelected bureaucrats and their bankster cronies can remain in charge of printing “money” and administering “markets.”  Which I ASSURE you, won’t remain the norm much longer.

As for bonds, everything I just said about stocks goes double.  As despite relentless propaganda – now, more than ever, given the satanic “partnership” between the “evil Troika” of Washington, Wall Street, and the Mainstream Media – the world’s biggest scourge, in both Heraclitus’ time and today – is DEBT.  And now that Fintech has figured out methods – like off-balance sheet derivatives – to “leverage” debt at ratios putting Lehman Brothers to shame, the level of global debt has reached levels undreamt of as recently as the turn of this century – to the tune of roughly $320 trillion on balance sheet, and at least as much “off balance sheet.”  To wit, whilst NYSE margin debt of $539 billion is itself at an unfathomably large record-high, “shadow margin lending” – i.e., “off balance sheet” – may be at least as large.  Heck, the entire Chinese economy is based on shadow lending, “managed” by the equally anachronistic, and unwaveringly failing, Communist manifesto.  Which is why China, the anticipated “leader” of the 21st Century, must experience a dramatic, and globally destructive, economic and monetary crash before it can truly advance.  And why, wisely so, its government, and citizens, are stockpiling gold at a record rate – both “on” and “off” balance sheet.  Not to mention, China in many ways represents the center of the Bitcoin universe – with a government that understands crypto-currency more than perhaps any other.

To that end, as highlighted in yesterday’s “Precious Metals and Bitcoin – Twin Destroyers of the Fiat Regime, Part III,” Fintech innovation in the monetary space is advancing at an unprecedented rate.  Heck, yesterday’s Bitcoin “hard fork” may well prove to be a powerful, and extremely unexpected, dagger in the powers that be’s’ diseased fiat Ponzi scheme; in that it may well have separated Bitcoin into two powerful entities; one, focused principally on storing value – and the other, facilitating unprecedented transactional speed.  A few months ago, at the height of the “scaling debate,” I suggested this very thing, but was scoffed at for believing such blasphemy had merit.  However, in a world where literally thousands of transaction types occur each day, it’s difficult to ascertain how one currency can handle them all.  And frankly, the most important transaction of all, wealth storage, works best when it has a medium of its own.

This is why GOLD’s principal “use case” (and with it, it’s “baby brother” silver) – wealth storage – has been bastardized throughout history, diluted by government-abused “gold standards” due to a lack of viable transactional alternatives.  And why, when crypto-currency overwhelms the fiat monetary regime, it (they) will not only be liberated from the maniacal suppression that has pushed prices to their lowest-ever inflation adjusted levels; whilst simultaneously, destroying the mining industry’s ability to produce them; but finally, after thousands of years, they will be relegated to said principal use case – wealth storage – which for centuries, has been diluted by futile, universally destructive government efforts to manage the monetary system.

And for those that say, “but crypto-currency will take over that use case, too” – I’ll simply say “plus ça change, plus c’est la même chose”; i.e., the more things change, the more they stay the same.  As, per last week’s “co-existence of scarcity assets,” the amount of fiat currency – and debt default – to be “insured” against is unfathomably large, compared to the minuscule size of the available-for-sale float of the handful of scarce, wealth-storing asset classes.  To that end, if you are fortunate enough to be able to hold an ounce of gold in your hand – realizing its weight, luster, brilliance, and the amount of blood, sweat, and tears that went into finding, producing, and circulating it – I ASSURE you, you’ll understand why Precious Metals’ financial system role isn’t going anywhere, no matter how rapidly “Fintech” advances.

I could easily end this article here.  However, I kid you not, my original working title was “gail force economic headwinds, Precious Metal tailwinds,” so I feel compelled to discuss the reasons why.  I had no idea I’d go off on the aforementioned, extremely important, big picture tangent.  However, the fact remains that the global economy – and monetary system – is rapidly collapsing; to the point that the final hyperinflationary push, that forever destroys fiat currency in lieu of said “new world” of Fintech, has never been closer.

On a day when the Australian Central bank followed those of the U.S., Europe, and Japan (last week) in warning of the “dangers” of a strengthening currency; just one day before “whisper” rumors suggest the Bank of England will do the same; oil prices plunged based on OPEC’s production again hitting a new all-time high in July (with U.S. shale perhaps a month or two behind), as “deflation” fears – rigged stock market notwithstanding – continued to take center stage.  To wit, Jim Rickards’ tweet yesterday, regarding why the Fed is “done raising rates this year.”  Which, I might add, the money markets decidedly agree with – and myself, per last week’s (maniacal Cartel suppression efforts notwithstanding) “most Precious Metals bullish I’ve ever been.”

Read More @ MilesFranklin.com

“Markets Are Wrong”: Hugh Hendry Shuts Down His Hedge Fund; Here Is His Farewell Letter

from ZeroHedge:

In the beginning, Hugh Hendry was the consummate contrarian bear, which helped him make a killing a decade ago when everyone else was blowing up. Unfortunately for him, he did not realize just how far the central planners were willing to take their monetary experiment, so after the market troughed in 2009, he kept his bearish perspective, which cost him dearly in terms of missed gains and lost capital under management, until one day in November 2013, he capitulated and turned bullish, infamously saying I cannot look at myself in the mirror; everything I have believed in I have had to reject. This environment only makes sense through the prism of trends.”

Since then, the reborn Hendry who would never again fight central banks, gingerly made his way, earning his single digit P&L…

…. even as many of his formerly loyal LPs deserted the former bear. It culminate with July and August, when Hendry posted some of his worst monthly returns on record which ultimately sealed his fate, and as he writes in a letter sent to investors today, Hendry decided to shut down his Eclectica hedge funds after 15 years, following a 9.8{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} YTD loss and massive redemptions, which left the fund which as recently as a few years ago managed billions with just $30.6 million as of August 31. As he best puts it “It wasn’t supposed to be like this.”

The final P&L:

So what is Hendry’s parting message to his investors and fans? Surprisingly, perhaps, he disavows the original Hugh Hendry, and goes out long (if not quite so strong). Below we repost his full final letter in its entirety, and wish Hendry good luck in his next endeavour.

CF Eclectica Absolute Macro Fund

Manager Commentary, September 2017

What if I was to tell you I wasn’t bearish on anything? Is that something you would be interested in?

It wasn’t supposed to be like this and it is especially frustrating as nothing much has gone wrong with the economy over the summer. If anything we feel more convinced that our thesis of a healing global economy is understated: for the first time in an age all parts of the world are enjoying synchronised economic momentum and I can’t see it ending for some time. It’s just that our substantial risk book became strongly correlated over the short term to the maelstrom of President Trump and the daily news bombs emanating from the Korean Peninsula; that and the increasing regulatory burden which makes it almost impossible to manage small pools of capital today. Like I said, it wasn’t supposed to be like this…

But let me bow out by sharing my team’s views. For the implications of a sustained bout of economic growth are good for you. It’s good because it should continue to underwrite a continuation in the positive performance of global equities. I would stay longIt’s also good because I can’t see interest rates rising abruptly to interrupt the upward path of equities. And commodities have already acknowledged the upturn in the fortunes of the global economy and are likely to trend higher still. That’s a lot of good news.

But it is bad news for me because funds like mine are required to demonstrate negative correlation with risk assets (when they go up like this I go down…), avoid large drawdowns and post consistent high risk adjusted returns.

Oh, and I forgot, macro fund clients don’t like us investing in the stock market for the understandable fear that we concentrate their already considerable risk undertaking. That proved to be an almighty puzzle for a fund like mine that has been proclaiming the stock market as a “safe-ish” bet ever since 2013.

Let me explain the “markets are wrong and we boom now” argument. To begin with, and for the sake of clarity, I think we have to carefully go back and deconstruct the volatile engagement between capital markets and central banks for the last ten years for an understanding of where we stand today.

The first die was cast by the central bankers in early 2009: having stared into the abyss of a deflationary spiral in 2008 the Fed and the BoE announced a radical new policy of bond purchases named Quantitative Easing. The bond market hated the idea as it was expected to cause a severe inflation problem.

Thankfully Bernanke, a student of the great depression knew better.

Markets primed themselves for inflation yet even with a ripping stock market in 2009/10 they were disappointed. QE rescued the financial system but the liquidity created was distributed to the very rich who have a very low monetary velocity and so the expected inflation fillip never materialised as the liquidity injection came to be stored rather than multiplied by the banking system.

Several years later, in 2013, the Fed suggested a reduction in the pace of its QE program. They wanted to tighten credit conditions gradually. However, capital markets beat them to it and the ensuing “taper tantrum” tightened monetary policy on their behalf. Within four months the market had taken 10 year treasuries from a yield of 1.6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} to 2.9{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}, a move of far greater impact, and much more rapid, than anything the Fed had contemplated doing.

Markets initially thought the US could cope with this higher level of rates, but with a slowing economy, an unfortunately-timed oil price crash, and persistent ghosts in the machine (like the substantial Yuan devaluation fear which never materialised) they were proven wrong. Back then, with a 7.6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} national unemployment rate and tepid wage inflation, this tightening always looked a little premature to us and so it proved with the rate of price inflation inevitably sliding lower to present levels.

And so last year, following many years of berating the Fed for its easy monetary policy regime, investors collectively threw in the towel. This rejection of the basic tenets of the business cycle by those who direct the huge pools of real money is proving particularly onerous to attack as it seems that the basic macro fund model is broken: there are just not enough “coins in them pirates’ chests” to challenge the navy of this flawed real money doctrine. Managers, and I must count myself in this camp, feel compromised by our poor absolute returns since 2012 and we find ourselves unable to put up much resistance to this FAKE NEWS.

Why should you fight it? Well let’s look at the last few times American unemployment dipped below 4.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} like today. I would largely ignore 2000 and 2006 when monetary policy was tightened and the economy buckled under the duress of the dramatic reversal in what had been credit fuelled misallocations of capital in the TMT and property sectors. No, for me 1965 is far more illuminating. Then, like today, there was no epic bubble or set of circumstances whose reversal could cause a slump; people forget but recessions don’t come out of thin air. No, in 1965, economic growth got choked by a tight labour market; a market as ominously tight as today’s.

In the middle of 1964, CPI core inflation was running at 1.7{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} and indeed dropped to just 1.2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in 1965; unemployment was 4.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}, the same as today. And yet by the end of 1966 inflation had essentially got out of control and didn’t dip below 2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} again until 1995, almost 30 years later.

Read More @ ZeroHedge.com