Monday, July 22, 2019

The Strange Case Of The Falling Dollar – And What It Means For Gold

by Brandon Smith, Alt Market:

Trillions of dollars in uncontrolled central bank stimulus and years of artificially low interest rates have poisoned every aspect of our financial system. Nothing functions as it used to. In fact, many markets actually move in the exact opposite manner as they did before the debt crisis began in 2008. The most obvious example has been stocks, which have enjoyed the most historic bull market ever despite all fundamental data being contrary to a healthy economy.

With a so far endless supply of cheap fiat from the Federal Reserve (among other central banks), as well as near zero interest overnight loans, everyone in the economic world was wondering where all the cash was flowing to. It certainly wasn’t going into the pockets of the average citizen. Instead, we find that the real benefactors of central bank support has been the already mega-rich as the wealth gap widens beyond all reason.  Furthermore, it is clear that central bank stimulus is the primary culprit behind the magical equities rally that SEEMS to be invincible.

To illustrate this correlation, one can compare the rise of the Fed’s balance sheet to the rise of the S&P 500 and see they match up almost exactly. Coincidence? I think not…

Another strangely behaving market factor that has gone mostly unnoticed has been the Dollar index (DXY). Beginning after the global financial crisis in 2008, the dollar’s value in reference to other foreign currencies initially moved in a rather predictable manner; collapsing in the face of unprecedented bailout and stimulus programs by the Fed, which required unlimited fiat creation from thin air. Naturally, commodities responded to fill the void in wealth protection and exploded in price. Oil markets in particular, which are priced only in the US dollar (something that is quickly changing today), nearly quadrupled. Gold witnessed a historic run, edging toward $2,000.

In the past few years, central banks have initiated a coordinated tightening policy, first by tapering QE, then raising interest rates, and now by decreasing their balance sheets. I would note that while oil and many other commodities plummeted in relative value to the dollar after tightening measures, gold has actually maintained a strong market presence, and has remained one of the best performing investments in recent years.

Something rather odd, however, has been happening with the dollar…

Normally, Fed tightening policies should cause an ever-increasing boost to the dollar index. Instead, the dollar is facing a swift plunge not seen since 2003.

What is going on here? Well, there are a number of factors at play. First, we have a growing international sentiment against US treasury bonds (debt), which may be affecting overall demand for the dollar, and in turn, dollar value.  For example, one can see a relatively steady decline in US treasury holdings by Japan and China over the course of 2016, with China being the most aggressive in its move away from US debt:

We also have a subtle, yet increasing, international appetite for an alternative world reserve currency. The dollar has enjoyed decades of protection from the effects of fiat printing as the world reserve, but numerous countries including Russia, China, and Saudi Arabia are moving to bilateral trade agreements which cut out the US dollar as a mechanism. This will eventually trigger an avalanche of dollars flooding into the US from overseas, as they are no longer needed to execute cross-border trade. And, in turn the dollar will continue to fall in relative value to other currencies.

There is also the issue of coordinated fiscal tightening by central banks around the world, with the ECB and even Japan moving to cut off stimulus measures and QE.  What this means is, other currencies will now be appreciating in terms of Forex market value against the dollar, and in turn, the dollar index will decline further.  Unless the Federal Reserve acts more aggressively in its interest rate hikes, the dollar’s decline will be brutal.

Finally, we also have the issue of nearly a decade of Fed stimulus that has gone without audit (except for the limited TARP audit, which shows tens of trillions in money/debt creation). We truly have no idea how much fiat was actually created by the Fed – but we can guess that it was a massive sum according to the seemingly endless rise in equities from a point of near total breakdown, funded by quantitative easing and stock buybacks. You cannot conjure a market rebound merely with debt. Eventually, that currency creation and the consequences will have to set a foot down somewhere, and it is possible that we are witnessing the results first in the dollar, as well as the Treasury yield curve, which is now flattening faster than it did just before the stock market crash in 2008.

A flat yield curve is generally a portent of economic recession.

Read More @ Alt-Market.com

The War On Cryptocurrency Just Intensified As Steve Mnuchin Enters The Fight

from SilverDoctors:

Steve might not be able to shoulder a rifle for very long, but his words constitute a preemptive, tactical strike on cryptocurrency. Here’s the details…

Here at Silver Doctors, we coined the term “War on Cryptocurrency” before anybody.

As goldbugs and silverbugs, we know what the government and central bankers hate more than anything in the world: Competition to their monopoly on currency.

Even if we know that Bitcoin and cryptocurrencies are not money and are not even stores of value, the fact that crypto is trying to be currency is more than enough.

Said differently, it’s easy to see that attack is the inevitable consequence when something (Bitcoin) looks to be a direct threat to sovereign debt-based fiat currency.

As such, we now have Steve Mnuchin, the man who’s name is printed on the king of all debt-based fiat currency, speaking out in what can only be described as an escalation in the War on Cryptocurrency.

Via Bloomberg:

U.S. Treasury Secretary Steven Mnuchin said he will work with the Group of 20 nations to prevent cryptocurrencies such as bitcoin from becoming the digital equivalent of an anonymous Swiss bank account.

Speaking to the Economic Club of Washington on Friday, he said wants to ensure “bad people cannot use these currencies to do bad things.”

Under U.S. law, “if you have a wallet to own bitcoins, that company has the same obligation as a bank to know” you as a customer, Mnuchin said. “We can track those activities. The rest of the world doesn’t have that, so one of the things we will be working very closely with the G-20 is making sure that this doesn’t become the Swiss bank account.”

Here’s the full exchange in video format:

So by all appearances, and straight from the horse’s mouth, it looks like the War on Cryptocurrency is intensifying.

Read More @ SilverDoctors.com

These 3 Facts Show Gold Is Set to Surge in 2018

by Jeff Clark, GoldSilver:

Crypto and stock prices grabbed most of the investment headlines in 2017. But by the end of 2018, a different asset class is bound to spark investor’s attention.

There are multiple reasons for that, starting with the fact that no trend or bull market lasts forever. But it’s about more than just the prolonged run in equities and runaway prices in cryptos.

There are three specific developments I’ve been tracking that all point to 2018 being the year for a decisive breakout in gold…

1. Gold Should’ve Fallen in 2017—Instead It Built a Base

Let’s play a guessing game… I’ll give you an economic and market scenario, and you tell me if gold would rise or fall in that environment. Here’s the scenario:

• Soaring stocks markets, with all major US markets making numerous new highs throughout the year.

• Raging bitcoin and crypto prices, captivating investors worldwide and dominating headlines, with numerous stories of investors getting rich.

• Rising real estate values, with some areas reporting frothy prices.

• Rising US interest rates, with promises of more from the Fed.

• Higher GDP in the US and many other economies around the world.

• Falling unemployment in the US.

• Higher wages, with the passage of a tax bill that spurred many companies to offer bonuses and wage increases.

• And last, falling gold bullion sales, so soft they reached a 10-year low.

So what do you think… would gold rise or fall in that set of circumstances?

Surely you’d guess the price would be weak, if not fall substantially. It’s the exact opposite environment for gold to do well. Indeed, there are plenty of examples from history where gold performed poorly in circumstances similar to these.

But with all that going on last year, the gold price ROSE! It climbed 12.1% in 2017, despite the many obvious headwinds.

Why was gold up in the midst of all the positive economic indicators and giddy investment markets? 

As you can see in the chart, one reason is because the US dollar fell last year, which is usually inversely correlated to gold. This fact has a message for us: if you’re bearish on the world’s reserve currency like we are, then you can expect gold to do well as the dollar’s value continues to disintegrate.

But it’s more than just dollar weakness. Clearly, investors around the world continued to see the need to buy gold, despite many improving economic indicators and the everybody’s-getting-rich investment markets. Whether it’s overpriced stock and crypto markets, ongoing currency dilution, surging debt levels, geopolitical conflicts, USD weakness, or one of many other concerns, investors didn’t shun gold but instead were buying. They see elevated risks in markets, economies, and currencies and are flocking to gold in response.

This behavior is not one of confidence in markets or central bankers, but a sign of just the opposite. It says that investors are preparing for a reversal in the good fortunes outlined above—and for a decisive bull market in gold. Given the multiple financial risks that surround us, it won’t take much to tip sentiment back to gold. By the end of this year we think that’s exactly what happens.

 

2. The Everything Bubble Is Coming to an End

Mike Maloney shows in his excellent new video that stocks, bonds, and real estate—the primary investment assets of most North Americans—are all in bubbles. And he believes those bubbles are likely to pop this year.

As just a couple examples from Mike’s video, he shows that…

• The VIX (Volatility Index, a general measure of fear in the marketplace) has registered a reading below 10 a total of 54 days in the last 20 years—and 46 of those abnormally low readings have occurred just since last May! The reversal to the upside could be stunning—and push investors into gold.

• The CAPE (Cyclically Adjusted Price-Earnings) ratio has now matched its 1999 level, the second highest reading in over 100 years of data. And you remember what happened in the years following that bloated stock market level. The CAPE has now registered a higher reading only in 1929. Yikes.

Remember, no trend lasts forever. Since gold is inversely correlated to most major asset classes, it is more likely to rise when stock markets crash.

Mike states that next January will be a “very happy new year for precious metals investors.” If you haven’t seen what he expects to take place over the coming year, this video is well worth your time.

Read More @ GoldSilver.com

The Last Great Silver Buy – Ted Butler

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by Ted Butler, SilverSeek:

In the annals of silver in the modern age, there have been two well-known instances of very large investor accumulations of the metal. First came the purchase by the Hunt Brothers and their associates in early 1980, followed by the purchase by Warren Buffett’s Berkshire Hathaway, 17 years later. The Hunts were said to control around 100 million ounces of actual metal (plus another 100 million ounces in long paper futures contracts), while Berkshire held as many as 129 million ounces.

Now there is compelling evidence of a third great investment accumulation of physical silver by none other than JPMorgan, one of the most powerful and connected banks in the world. This accumulation can be dated from the price peak of April 2011, after silver began what is now a near seven-year price decline. From zero in April 2011, the amount of silver in the JPMorgan COMEX warehouse has increased to 120 million ounces. Just about every ounce moved into the JPMorgan COMEX warehouse over the past 7 years has come from futures deliveries stopped (taken) by JPM in its own name. JPMorgan took delivery of 14 million ounces in December and so far, 13 million ounces have remained in the warehouses from which the metal was delivered. So this means that JPMorgan now holds more than 133 million ounces of silver in COMEX warehouses, or more than was held by the Hunt Bros or by Berkshire Hathaway at their peaks. There was a lot more silver in the world in 1980 and 1998 than there is today, meaning that JPMorgan’s accumulation is much more of an accomplishment than previous silver acquisitions.

JPMorgan’s COMEX warehouse silver holdings are only the tip of the iceberg. Beneath the surface, the true extent of JPMorgan’s physical silver accumulation is nothing short of mind-boggling. All told, including the verifiable 133 million ounces held in its own and other COMEX warehouses, JPMorgan holds at least 675 million ounces of actual silver. Simply put, JPMorgan has acquired six times as much metal as bought by the Hunts or Berkshire Hathaway. How is it possible that JPMorgan, could acquire such a massive quantity of physical silver, with no general awareness that it was doing so? More importantly, how did they do it while silver prices steadily declined over the entire time of JPM’s accumulation?

Common sense would dictate that such a large acquisition as JPM’s 675 million ounces (nearly 45% of the 1.5 billion ounces of silver bullion in the form of industry standard 1,000 ounces bars in the world), could not be bought by any entity without driving prices sharply higher. So how could JPMorgan do so without it being noticed and without driving prices sharply higher? The answer is that in addition to being the biggest physical silver accumulator in history, JPMorgan has simultaneously been the largest short seller in COMEX silver futures for the entire time since it acquired Bear Stearns in early 2008. JPMorgan has pulled off something that couldn’t possibly be replicated not just in silver but in any other world commodity. Never again will any one entity be able to accumulate 45% of the world’s supply of a commodity. JPMorgan’s accumulation is more bullish for silver than any other single consideration by a factor of 1,000.

How legitimate is it that a large financial entity could sell short massive quantities of paper derivatives contracts which result in lower prices, and then use those lower prices to accumulate silver on the cheap? It couldn’t possibly be legitimate and that makes JPMorgan a market crook and manipulator. It also makes the federal regulator, the CFTC, and the self-regulating CME Group, incompetent, corrupt, or both. This takes a special kind of market manipulator, one most likely operating under some type of agreement with the regulators.

As I have explained in past articles, 150 million ounces of silver was acquired by JPMorgan through buying 100 million Silver Eagles from the U.S. Mint, plus another 50 million Silver Maple Leafs from the Royal Canadian Mint. All these coins were melted into industry standard 1,000 ounce bars since as there’s no way anyone to unload 150 million Silver Eagles and Maple Leafs. In 2013 record sales of these silver coins conflicted strongly with reports from retail dealers of weak demand. By process of elimination, if it wasn’t the guy on the street buying all these coins, it had to be someone big. Based upon a variety of other supporting evidence that JPMorgan was the absolute king of the silver market, the most plausible explanation was that JPMorgan was Mr. Big when it came to buying Eagles and Maple Leafs. JPMorgan’s cessation in buying these coins a year or so ago is the only explanation for why sales then fell off a cliff. JPM controlled the price at which the mints sold and JPMorgan bought. It was a particularly clever and deceitful means by which JPM acquired 150 million ounces of silver at give-away prices.

At the exact time that silver topped out in April of 2011, JPMorgan opened its COMEX silver warehouse and began its epic accumulation of silver. Another almost impossible to explain phenomenon started then and continues to this day – an unusually large and persistent physical movement of silver brought into and taken out from the COMEX silver warehouses. Over the past near 7 years, there has been an average weekly movement of around 4.5 million ounces of physical silver turning over in the COMEX silver warehouses, far higher than ever before. In total, some 1.4 billion ounces of physical silver were moved in and out of the COMEX warehouses. This physical movement of silver in the COMEX warehouses is highly unique to silver, as no other commodity has seen any unusual turnover in exchange-approved warehouse inventories – just COMEX silver. I believe this unusual turnover was created by JPMorgan gobbling up all available silver in industry standard 1,000 ounce bars. JPM has been able to “skim off” 150 to 200 million ounces, which when combined with the 150 million ounces that JPM accumulated in mint-issued coins, brings to 300 to 350 million ounces of the 550 million ounces JPMorgan holds outside its COMEX warehouse holdings.

Read More @ SilverSeek.com

AS SISYPHUS FAILS GOLD WILL ASCEND

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by Egon von Greyerz, Gold Switzerland:

Welcome to 2018 – a year that will be the culmination of at least 105 years of mismanagement of the Western financial system by governments, central bankers and the elite.

2018 will be a year of major volatility in many markets. Stocks are now in a melt-up phase and before the major bear markets start in virtually all countries around the world, we are likely to see the final exhaustion moves which could be substantial. The year will also be marked by inflation increasing a lot faster than expected. This will include higher interest rates, much higher commodity prices, like food and oil as well as a falling dollar. And many base metals will strengthen. Precious metals finished the 2-3 year correction (depending on the base Currency) in 2015 and are now resuming the move to new highs and eventually a lot higher. More on this later.

For a century, a reckless elite has controlled the system for their own personal gain and thus accumulated massive wealth. Ordinary people have been totally cheated into believing that they have benefitted by having all the material things that most of them can’t afford – be it a house, car, computer or iPhone. All on credit of course.

Whilst the elite owns most of the assets, ordinary people own the debt. Not just their own debt but also the public debt burden which irresponsible governments have built up including unfunded liabilities like pension and medical care. And when the financial system fails, ordinary people will suffer the most.

THE $2 QUADRILLION SISYPHEAN TASK

We have seen a century of debt buildup from virtually zero to $240 trillion. Global debt has doubled since the beginning of the Great Financial Crisis in 2006. This has led to asset bubbles and overvaluations never seen before in history. If unfunded liabilities and derivatives are included, the total burden amounts to $2 Quadrillion.

That is the enormous Sisyphean task that the world will have to struggle with in coming years. Although central banks and the elite seem clueless, they can clearly not be unaware of the gigantic size of the problem.

We know that these liabilities can never be settled. What happened in 2006-9 was only a rehearsal. In the last minute central banks orchestrated a massive rescue programme which included interest rate reduction, money printing, guarantees, liquidity injections plus allowing banks to value toxic debt at maturity instead of market. These measures temporarily postponed the inevitable collapse. They are unlikely to work next time but since the central banks have few other options left, they will try the same things again. But this next time they will fail.

CRYPTO$ – CRYPTO€ – CRYTPO£

In my mid December article I discussed a new Phoenix world currency based on cryptocurrency technology and the likelihood of governments introducing such a system. This would have the benefit of fudging the fact that fiat money is worthless. The new “money”, based on crypto technology, would have a fake value which would make it hard to relate to the “old” currency. The same happened when the Euro was created. Also, just like existing cryptos, the value would be inflated massively through manipulation as well as by demand from a gullible public. Governments would use this new office cryptocurrency to divert attention from the insoluble global debt problem.

The governor of the Bank of England (BoE), Mark Carney, has just declared that the BoE is seriously considering introducing an official cryptocurrency in 2018 already and also that the BoE is in discussion with other central banks on this matter. The BoE has worked on this project since 2015. The technology was tested satisfactorily in the summer of 2017 according to Carney. He stated: It is a most interesting application that is beneficial for financial stability and efficiency. He also said: “We are on the case”. It obviously has nothing to do with financial stability since another fiat currency, this time electronic, can only very temporarily conceal that the world is bankrupt.

So it is clear that central banks, as I discussed in my last article, are already on the case for some time and see official cryptos as a solution to the global debt problem as well as the perfect way to control money. Through manipulation they can easily create unlimited cryptos and hype the value. They can also electronically totally control individuals’ money and their transactions. This is the perfect Big Brother system and thus another frightening attempt to severely limit the money and freedom of individuals.

It is now very likely that Western governments will attempt to introduce such a cryptocurrency system in the next few years. There could be a USCrypto, EUCrypto and a UKCrypto etc. It is also possible that there will be a SDCrypto (Special Drawing Rights).

CHINA AND RUSSIA HAVE DIFFERENT PLANS

But there will be many obstacles since it is extremely unlikely that countries like Russia and China will accept a US, EU or UK cryptocurrency. These countries understand that all the new fake cryptocurrencies would be just as worthless as the currencies they would replace. China and Russia have a very different plan. They will introduce a gold and oil backed (crypto)currency which will be far superior to any new money that the West would produce. With this currency, China and Russia will become the dominant economic powers as the West declines into obscurity.

These major changes in economic trends clearly don’t happen quickly but over an extended period. Nevertheless, 2018 is likely to be a significant year, marking the beginning of the end of the latest, but certainly not last, corrupt financial system which has lasted 105 years.

Read More @ GoldSwitzerland.com

Silver Antidote to Bubble Craziness

by Gary Christenson, Deviant Investor:

CHARACTERISTICS OF BUBBLE CRAZINESS:

  • U.S. stocks, according to many measures, are the most over-valued in history. We live in a Bubble Zone!
  • Bitcoin and other cryptos are definitely in a bubble, but they could rise even higher.
  • Bonds yield little, and in many European countries, less than zero. Central banks have created this distortion to the detriment of savers, insurance companies and pension funds.
  • Real estate: Some locations, such as New Zealand, Canada and Australia are up a factor of 8 to 20 since 1980. Houses have become unaffordable for many, even with historically low interest rates.
  • Silver and gold: No bubble since 1980. Prices have been repressed since 2011 and are attractive now.

INVESTING IN BUBBLE CRAZINESS:

  • Institutions buy stocks because bonds yield so little. This works until the inevitable crash. Think tech stocks in 2000 or 2018(?).
  • Institutions and central banks buy bonds trusting the “greater fool” theory. Argentina sold 100 year bonds. What happens when the world runs out of “greater fools?”
  • People buy Bitcoin because it is going up, and it might double again from here. Are you comfortable investing savings with that plan?
  • Others deposit their digital currency units into a “high yield” checking account that yields 0.01% interest. Or they “invest” in a CD that guarantees a yield of 1% per year in a currency that will be devalued by far more. Others buy a motor coach that depreciates $100,000 when they drive it from the dealer lot. Or they purchase a house that costs $10,000 to $50,000 per year in taxes, insurance, maintenance and utilities before principal and interest.
  • Demand value! Not doing any of the above! Avoid fads, bubbles, central bank distortions and obvious financial insanity.

WHAT’S LEFT? GLAD YOU ASKED!

  • What has been money for thousands of years?
  • What is more permanent than ephemeral digital currency units that are continually devalued?
  • Asia has aggressively accumulated it for decades.
  • What has been secretly sold from western vaults and shipped to Asia?
  • What is used in thousands of industrial and medical applications?
  • What has been suppressed by governments and central banks because they promote their own digital and paper currencies which have zero intrinsic value?

THE WINNERS ARE SILVER AND GOLD!

  • But “they” claim gold and silver are volatile and dangerous. Gold and silver might go up or down (for a few years) when measured in digital currency units created from “thin air” by corrupt central banks. Gold in 1971 was $42 and is about $1,300 today. Silver prices have increased similarly as central banks devalued the dollar.
  • For other examples of volatile and dangerous prices, consider the price chart for Global Crossing stock or Enron stock. Or the NASDAQ 100 from 2000 to 2002 (down 84%). Or the S&P 500 Index from 2007 to 2009.
  • But “they” claim gold and silver are relics of a bygone era, and digital is the wave of the future. So why are Russia and China accumulating gold bullion? What happened to Iraqi gold, Libyan gold, and Ukrainian gold, and who wanted it?
  • Do dictators escape while carrying paper currency units or gold bullion?
  • Would you prefer 100 ounces of gold or 130,000 paper dollars in a ten year time capsule?
  • Central banks create trillions of U.S. dollars, euros, pounds, yen and Swiss Francs each year. The Swiss central bank “creates” currency units and buys U.S. stocks. The media thinks “creating from nothing” is normal and healthy, yet informs us that investing in gold, to protect from devaluing currencies, is silly and dangerous!

GOLD AND SILVER IN THE BIG PICTURE:

U.S. dollars are created as debt. Central banks and governments want more currency units so debt, deficits and expenses exponentially increase.

Graph the price of silver (times a trillion) divided by the national debt. The ratio is low because debt has increased rapidly and silver is inexpensive.

Graph the price of silver (times a trillion) divided by U.S. government annual expenses. The ratio is low and silver is inexpensive compared to total U.S. government expenses.

Read More @ DeviantInvestor.com

GOLD IN RUSSIA

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from Junius Maltby:

GOLD BREAKS OUT AS BANKERS ENGAGE IN BOTH GOLD/SILVER SHORT COVERING

by Harvey Organ, Harvey Organ Blog:

GOLD RISES $11.65 TO $1334.45/SILVER ADVANCES 20 CENTS UP TO $17.15/AT THE COMEX WE EXPERIENCED A HUGE 11,170 GOLD EFP TRANSFERS TO LONDON/SILVER COMEX EXPERIENCED 1,316 EFP TRANSFER CONTRACTS TO LONDON/IN THE USA A BIG MISS IN RETAIL SALES/MORE SWAMP STORIES FOR TODAY

GOLD: $1334.45 UP $11.65

Silver: $17.15 UP 20 cents

Closing access prices:

Gold $1338.85

silver: $17.26

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: $1333.53 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1326.50

PREMIUM FIRST FIX: $7.03

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SECOND SHANGHAI GOLD FIX: $1340.21

NY GOLD PRICE AT THE EXACT SAME TIME: $1329.00

Premium of Shanghai 2nd fix/NY:$11.21

SHANGHAI REJECTS NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1332.90

NY PRICING AT THE EXACT SAME TIME: $1331.10

LONDON SECOND GOLD FIX 10 AM: $1326.80

NY PRICING AT THE EXACT SAME TIME. $1327.00

For comex gold:

JANUARY/

NUMBER OF NOTICES FILED TODAY FOR JANUARY CONTRACT: 181 NOTICE(S) FOR 18100 OZ.

TOTAL NOTICES SO FAR: 437 FOR 43700 OZ (1.3592 TONNES),

For silver:

jANUARY

5 NOTICE(S) FILED TODAY FOR

25,000 OZ/

Total number of notices filed so far this month: 537 for 2,685,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $14,021/OFFER $14,141 UP $807 (morning)

 Bitcoin: BID   13,837/OFFER  $13,957 UP  $624(CLOSING)

 

end

Let us have a look at the data for today

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In silver, the total open interest FELL BY A TINY 216 contracts from 196,660 FALLING TO 196,444 WITH YESTERDAY’S  6 CENT FALL IN SILVER PRICING.  WE HAD MINIMAL COMEX LIQUIDATION BUT WITHOUT A DOUBT WE WITNESSED ANOTHER FAILED MAJOR BANK SHORT- COVERING OPERATION. NOT ONLY THAT , WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: A GOOD 1034 EFP’S FOR MARCH (BUTALSO STRANGELY 282 EFP CONTRACTS FOR THE FRONT FEBRUARY MONTH)  AND THUS TOTAL ISSUANCE OF 1316 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE A MAJOR PLAYER TAKING ON THE BANKS AT THE COMEX. STILL, WITH THE TRANSFER OF 1316 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. YESTERDAY WITNESSED  EFP’S FOR SILVER ISSUED. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S. I BELIEVE THAT WE MUST HAVE HAD SOME MAJOR BANKER SHORT COVERING AGAIN TODAY.

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

23,761 CONTRACTS (FOR 10 TRADING DAYS TOTAL 23,761 CONTRACTS OR 118.805 MILLION OZ: AVERAGE PER DAY: 2376 CONTRACTS OR 11.880 MILLION OZ/DAY)

 

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR  118.805 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 16.8% OF ANNUAL GLOBAL PRODUCTION SO FAR THIS MONTH.

RESULT: A TINY SIZED LOSS IN OI COMEX WITH THE TINY 6 CENT FALL IN SILVER PRICE WHICH USUALLY INDICATES ANOTHER FAILED BANKER SHORT-COVERING. WE ALSO HAD A FAIR SIZED EFP ISSUANCE OF 1316 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS.  FROM THE CME DATA 1316 EFP’S WERE ISSUED FOR TODAY (FOR MARCH EFP’S, THEY ISSUED 1034 CONTRACTS AND A STRANGE 282 EFP CONTRACTS FOR THE FRONT  FEB CONTRACT MONTH) FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS. WE REALLY GAINED 1100 OI CONTRACTS i.e. 1316 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 216  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE TINY FALL IN PRICE OF SILVER OF 6 CENTS AND A CLOSING PRICE OF $16.95 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A GOOD 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. 0.9820 BILLION TO BE EXACT or 140% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JANUARY MONTH/ THEY FILED: 5 NOTICE(S) FOR 25000 OZ OF SILVER

In gold, the open interest FELL BY 3379 CONTRACTS DOWN TO 564,056 DESPITE THE  RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($4.15). IT LOOKS LIKE OUR BANKERS STARTED TO COVER THEIR GOLD SHORTS IN A SIMILAR FASHION TO WHAT WE ARE WITNESSING IN SILVER. IN ANOTHER HUGE DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY AND IT TOTALED A GOOD SIZED  11,170 CONTRACTS OF WHICH THE MONTH OF FEBRUARY SAW 8533 CONTRACTS , APRIL SAW THE ISSUANCE OF 2537 CONTRACTS WITH DECEMBER ADDING ANOTHER 100 CONTRACTS.  The new OI for the gold complex rests at 565,497. 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 JANUARY. 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 WE HAVE ANOTHER GOOD GAIN OF 7791 OI CONTRACTS: 3379 OI CONTRACTS DECREASED AT THE COMEX AND A GOOD SIZED 11,170 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.

YESTERDAY, WE HAD 7571 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JANUARY STARTING WITH FIRST DAY NOTICE: 91,602 CONTRACTS OR 9.1602 MILLION OZ OR 284.91 TONNES(10 TRADING DAYS AND THUS AVERAGING: 9,160 EFP CONTRACTS PER TRADING DAY OR 916,020 OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 10 TRADING DAYS: IN  TONNES: 284 TONNES

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

THUS EFP TRANSFERS REPRESENTS 284/2200 TONNES =  12.90% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JANUARY ALONE.

 

 

 

Result: A CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX DESPITE THE  RISE IN PRICE IN GOLD TRADING ON YESTERDAY ($4.15). WE HAD ANOTHER FAIR SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,170. 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 COME
X FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 11,170 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 7,791 contracts:

11140 CONTRACTS MOVE TO LONDON AND  3379 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the gain in total oi equates to 24.23 TONNES)

we had: 181 notice(s) filed upon for 18100 oz of gold.

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

GLD

With gold up again today, we had no changes in inventory from the GLD:

Inventory rests tonight: 828.96 tonnes.

SLV/ 

NO CHANGES IN SILVER INVENTORY AT THE SLV/

INVENTORY RESTS AT 316.348 MILLION OZ/

end

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

1. Today, we had the open interest in silver FELL BY A TINY 216 contracts from 196,660 DOWN TO 196,444 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE  THE FALL IN PRICE OF SILVER TO THE TUNE OF 6 CENTSWITH  YESTERDAY’S TRADING.  WE HAD WITHOUT A DOUBT ANOTHER FAILED  SHORT COVERING FROM OUR BANKERS AS THEY HAVE CAPITULATED.HOWEVER THIS TIME THEY WERE JOINED BY GOLD. NOT ONLY THAT BUT OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER 834 PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM) AND 200 EFP’S FOR THE FRONT FEBRUARY MONTH AS SOMEBODY WAS IN URGENT NEED OF SILVER METAL.  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD NO COMEX SILVER COMEX LIQUIDATION. BUT, IF WE TAKE THE  OI LOSS AT THE COMEX OF 216 CONTRACTS TO THE 1316 OI TRANSFERRED TO LONDON THROUGH EFP’S WE OBTAIN A GAIN OF 1100 OPEN INTEREST CONTRACTS IN CONJUNCTION WITH ANOTHER FAILED  BANKER SHORT COVERING. WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ: 6.05 MILLION OZ!!!

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE TINY FALL OF 6 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). BUT WE ALSO HAD ANOTHER 1316 EFP’S ISSUEDTRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD  SIZED AMOUNT OF SILVER OUNCES STANDING FOR JANUARY, 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 WEDNESDAY night/THURSDAY morning: Shanghai closed UP 3.51 points or 0.10% /Hang Sang CLOSED UP 46.67 pts or 0.15% / The Nikkei closed DOWN 77.77 POINTS OR 0.33%/Australia’s all ordinaires CLOSED DOWN 0.48%/Chinese yuan (ONSHORE) closed DOWN at 6.5080/Oil UP to 63.97 dollars per barrel for WTI and 69.42 for Brent. Stocks in Europe OPENED MOSTLY MIXED LEANING TO RED.   ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.5080. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.5130 //ONSHORE YUAN  WEAKER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS STILL  HAPPY TODAY.(GOOD MARKETS )

Read More @ HarveyOrganBlog.com

The Global Economy Will Collapse On July 20th (For Now Just Get Ready For A MASSIVE RAID On Silver)

from SilverDoctors:

Marshall Swing has been spot-on with all of his calls lately, and if Marshall is correct with his latest call, we have very little time to prepare…

by Marshall Swing of The Church Of Acts

Silver Moving Laterally, Gearing Up For Raid

On a side bar chat with SilverDoctors, Sunday, I indicated having been stopped out and repositioned shorts at higher level after seeing a huge Commercial Repositioning pattern on Friday.

SilverDoctors indicated they saw similar things and noted them in a post Friday and apparently the commenter’s were not happy.  Negative commenter’s are generally not happy or polite because they have little clue as to what is going on near term or what the big picture is in the metals.  All they want is instant gratification coupled with Blue Skies and have little to no patience or manners.

I lost almost a dime an ounce but I would rather lose a dime an ounce 560K times only to make $1.00+ an ounce later from a better position…

What caught me by surprise was the amount of drift allowed to $17.32 from roughly $17.00

When I see a certain number of contracts expended in the Commercials mounting a top then I calculate the width of the drift to set stops.  Didn’t work for me this time but that is quite okay.  You learn from miscalculations and get better.

Appears to be more of a war going on in gold.  If you notice the massive amount of contracts expended today (Wednesday) where the Commercials made a pointed cone, sort of like the Tin Man’s Hat, with a position reversal flag on top,  around 75,000 contracts traded in 90 minutes, in gold, in that space to the flag top today then retreated to exactly the price point from where they came.

Last Friday’s COT showed the Silver Commercials had upped their percentage of shorts from 46% to 56% and since COT close Tuesday January 2 we know they are much higher.  They are as predictable as Hillary and Bill Clinton are crooked.

Looks like we are headed to a fake new year’s full frontal assault on silver, and somewhat gold, as the last quarter corporate sales results come into reporting.  Great (FAKE) economic news spells temporary disaster for the metals and it is always intentional, especially at option exirations.

What those Commercials do is Witchcraft via Blythe Master’s manipulating, sly come hither stare:

Frank Tells It Like It IS

Strictly taboo are the Commercial’s ways courtesy of Blythe, long ago…

Don’t forget her!!!  She is a Blockchain nightmare ready to enter your dreams.

This metal’s lateral movement has all the looks of the same old tricks used to create depression in Small Speculators and Managed Money which tarnishes the allure of gold so various players like the Chinese and Russians can buy gold on the cheap and more importantly so the Elite’s get their fill before the world’s economies are crashed in July.

If you do not know why I say July, then read this:

Global Economic Collapse July 20, 2018 Tish B’av?

As the DOW blows by $26,000 is anyone remembering my friend Martin Armstrong who predicted roughly DOW 30K in the Fall of 2015?  Anybody getting that déjà vous feeling?

At this rate, DOW 30K will happen by late June or early July and right on schedule!

Could it be that something virtually imperceptible caused the Elite’s world economic crash and cashless society to be physically moved from October 24 2015 to Tish B’Av 2018, which is exactly 1000 days?

Read More @ SilverDoctors.com

“Nobody Cares, Revisited” with Grant Williams

by Turd Fergusin, TF Metals:

Fund manager and analyst Grant Williams joins us for an update on his tremendous “Nobody Cares” presentation from late 2015. Additionally, Grant takes some time to discuss the USDJPY-gold link as well as the pending introduction of that yuan-denominated crude oil contract in Shanghai. Be sure to take some time to listen.

Click HERE to listen

If you haven’t seen “Nobody Cares”, you should be sure to do so now. Though Grant first made this presentation back in December of 2015, the information is still highly relevant today and, with gold prices on the verge of an upside breakout, the implications of a large influx of new cash into the sector must be considered.

We also discuss the issue of “de-dollarization” and the impact the new, yuan-denominated crude oil contract may have on the process. Grant’s follow-up presentation of December 2016 dealt with this topic and you can watch it here, too. If you’ve never seen this video, you simply MUST take time to watch it today. The part that deals with de-dollarization and the potential impact of this new contract begins at about the 19:00 mark.

Read More @ TFMetals.com