Thursday, July 18, 2019

110 Million TON Silver Reserve Discovered in Mongolia Region, China

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by Rory Hall, The Daily Coin:

110 Million TON Silver Reserve Discovered in Mongolia Region, China by Rory – The Daily Coin

This certainly has my full undivided attention. Apparently 110 MILLION TON silver ore reserve has been discovered in China’s Mongolia region. Did the silver market just change and what does this mean for stackers?

According to Xinhua, China’s state owned news service, silver is free flowing through the Inner Mongolia region. The 110 million tons of silver ore may be flanked by even more silver but the miners can not or will not say at present. Will any of this silver make it’s way to the open market or will China, as they have done for the past several years, keep all the silver that is mined internally. Not only does China keep all their internal silver, and gold for that matter, they import a fair amount of silver each year. Most of the silver is used for industrial manufacturing like solar panels, biocides and a great many other uses including finer things like jewelry and investment coins and bars.

As YiCai Global reported

 

Local authorities in China’s Inner Mongolia Autonomous Region have found a silver reserve with over 110 million tons of the precious metal’s ore.

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The main and associated mines also contain 15,474 tons of silver metal, 38 million tons of lead ore, 392,200 tons of lead, nearly 105 million tons of zinc ore and 1.5 million tons of zinc, the report added.

My guess is we will never see any of the this silver come to the open market, especially with the electric vehicles coming online and the demand for silver, as the second most used commodity, will only continue to grow. This is to say nothing of the Belt and Road Initiative, EAEU and the other economic alliances that will be demanding massive infrastructure projects which means massive demand for all metals, both precious and base metals like lead, copper and zinc. It will be interesting to see how the COMEX uses this new discovery to beat down the metals on the COMEX and LBMA.

Read More @ TheDailyCoin.org

Doug Casey and Rick Rule on Gold-Backed Cryptos, Part II

by Doug Casey, Casey Research:

Justin’s note: Yesterday, Doug Casey, Rick Rule, and Nick Giambruno showed us the massive potential of gold-backed cryptos. If you missed it, catch up here.

Today, in part two of their discussion, the guys take a closer look at this new digital asset…

Nick Giambruno: Doug, I personally believe there will never be a gold-backed crypto that can completely stand in for gold. There is simply no substitute for owning physical gold that you can readily hold in your hand.

HYPERINFLATIONARY GOLD AT $175 BILLION DOLLARS

by Egon Von Greyerz, Gold Switzerland:

The Sword of Damocles is hanging over the world economy, held only by a single hair of a horse’s tail. With such visible danger, the problem could have been fixed easily by either using a gold chain or even removing the sword altogether.

But the elite, and central bankers have had other plans. Instead of replacing the hair with a solid metal chain, the sword is today hanging by a very fragile thread that can break at any time.

The global financial system was on the verge of collapse a decade ago. Central banks around the world, led by the Fed injected around $25 trillion in loans and guarantees. Banks like Citigroup, Morgan Stanley, Merrill Lynch and Bank of America got trillions. (see table below).

Keiser Report: Tapering a Ponzi (E1322)

from RT:

In the second half, Max interviews Mitch Feierstein of PlanetPonzi.com about why the Fed raised rates and how soon they will have to cut them once again. And will 2019 bring more quantitative easing as the market sell off continues?

The Dollar Cancer and the Gold Cure

by Keith Weiner, Gold Seek:

The dollar is failing. Millions of people can see at least some of the major signs, such as the collapse of interest rates, record high number of people not counted in the workforce, and debt rising from already-unpayable levels at an accelerating rate.

I am going to share a little bit about myself and my personal motivation. I want to help fix this problem. The alternative, if it’s not fixed, will be a repeat not of 2008 or the inflation of the 1970’s or 1929. It will be a repeat of 476AD, the collapse of Rome and the known world.

If it weren’t for this, I would have started another software company. I had a successful exit, a world class team that was ready to jump into the next gig with me, great advisors, and access to capital. And this was the career for which I had trained, and which I was pretty good at.

TERROR AT A PORT IN THE UAE AND IN THE GULF AND IRAN IS THE CHIEF SUSPECTS

by Harvey Organ, Harvey Organ Blog:

CHINA/USA TRADE DEAL SEEMS DEAD AND THIS CAUSES GOLD TO RISE $15.25//SILVER IS STILL HELD BACK, FALLING TWO CENTS TO $14.77// QUEUE JUMPING CONTINUES FOR BOTH GOLD AND SILVER//NO GOLD AGAIN ENTERS THE COMEX ARENA//PROBLEMS CONTINUE FOR TURKEY AS THEY ENGAGE IN ANOTHER FORM OF QE TO FUND THEIR GOVERNMENT FINANCES/A GOOD NUMBER OF SWAMP STORIES FOR YOU TONIGHT

Countries are stockpiling gold

by Tom Lewis, Gold Telegraph:

With Venezuela’s currency, the bolivar, nearly valueless, President Maduro is trying to encourage people to save by having the country’s central bank issue gold certificates. Maduro and his wife were seen purchasing gold certificates for 350 bolivars. This certificate is allegedly backed by 1.5 grams of gold and is numbered Certificate No. 1. First Lady Cilia Flores outdid her husband by purchasing a certificate for 2.5 grams. President Maduro made a point of telling the cameras, “If I had a little more savings in bolivars I would have invested more.”

He is urging citizens to follow suit and invest in gold, promoting the certificates as “fashionable Christmas presents.” This is a huge change in policy and the first time citizens have had the opportunity to invest directly in Venezuela’s gold.

On The Hot Seat – Ted Butler

by Theodore Butler, Silver Seek:

Q: A minor analyst recently remarked that he didn’t believe any of the claims you make about market manipulation and called it conspiratorial stuff. What do you say about that?

A: That’s the main reason my arguments have never caught on in a big way. Nobody wants to be associated with a conspiracy. However, I draw my conclusion from government data like the Commitment of Traders report and the Bank Participation report. There’s nothing conspiratorial about the data and my conclusions are factual.

ANOTHER RAID BY THE CROOKED BANKERS: GOLD DOWN $11.00 AND SILVER DOWN 44 CENTS

from Harvey Organ, Harvey Organ Blog:

KIM AND TRUMP SILENT ON THE NORTH KOREAN POWDER KEG/CHINA REINS IN ITS SHADOW BANKING SECTOR AND WE SHOULD EXPECT BANK RUNS SHORTLY/CARNAGE IN THE USA RESTAURANT BUSINESS AND BRICKS AND MORTAR

GOLD: $1273.70  DOWN $11.00

Silver: $16.70  DOWN 44 cent(s)

Closing access prices:

Gold $1271.90

silver: $16.64

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: $1281.93 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1274.90

PREMIUM FIRST FIX:  $5.02

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SECOND SHANGHAI GOLD FIX: $1279.81

NY GOLD PRICE AT THE EXACT SAME TIME: $1274.15

Premium of Shanghai 2nd fix/NY:$5.66

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LONDON FIRST GOLD FIX:  5:30 am est  $1274.60

NY PRICING AT THE EXACT SAME TIME: $1274.80 

LONDON SECOND GOLD FIX  10 AM: $1282.30

NY PRICING AT THE EXACT SAME TIME. $1282.30 

For comex gold:

AUGUST/

NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 26 NOTICE(S) FOR  2600  OZ.

TOTAL NOTICES SO FAR: 4547 FOR 454700 OZ (14.14 TONNES) 

For silver:

AUGUST

 

 70 NOTICES FILED TODAY FOR

 

350,000  OZ/

Total number of notices filed so far this month: 900 for 4,500,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

end

 

Today, the bankers succeeded in their raid on both gold and silver. The open interest in silver continues to fall despite a rise in price (yesterday) and it sure looks like banker capitulation as they try to extricate themselves from their mess. It will be important to see how much open interest in both gold and silver evaporated.  It will get the numbers late tonight  (after 11 pm) and I will insert them between the xxx’s

 

 

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preliminary OI for tonight 11 pm est

 xxxxxxx

Let us have a look at the data for today

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In silver, the total open interest SURPRISINGLY FELL AGAIN BY573 contracts from 189,478 DOWN TO 188,905 DESPITE THE  RISE IN THE PRICE THAT SILVER TOOK WITH RESPECT TO YESTERDAY’S TRADING (UP 6 CENT(S) AND THE FAILED RAID. SIMPLE EXPLANATION SAME STORY AS YESTERDAY: THE BANKERS HAVE CAPITULATED….THEY ARE TRYING TO COVER THEIR SHORTFALL AT HIGHER AND HIGHER PRICES. THE BANKERS ARE HAVING EXTREME DIFFICULTY IN SUPPLYING ADDITIONAL SHORT PAPER AND LONGS CONTINUE TO ADVANCE TAKING ON THE BANKER SHORTS. THE BATTLE OF WATERLOO WILL BE FAST APPROACHING

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.945 BILLION TO BE EXACT or 135{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 70 NOTICE(S) FOR 350,000OZ OF SILVER

In gold, the open interest FELL by A TINY 772 WITH the FALL in price of gold ($3.10 GAIN YESTERDAY.)  The new OI for the gold complex rests at 480,143. A raid was called upon by the bankers and it failed.  The bankers supplied the short paper but just as many longs entered the arena as banker shorts covered.  Thus a small gain in open interest.

we had: 26 notice(s) filed upon for 2600 oz of gold.

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

GLD:

Today, no changes in gold inventory:

Inventory rests tonight: 791.01 tonnes

IN THE LAST 22 TRADING DAYS: GLD SHEDS 45.96 TONNES YET GOLD IS HIGHER BY $35.85 . 

SLV

Today: : WE NO CHANGES IN SILVER INVENTORY TONIGHT:

INVENTORY RESTS AT 335.825 MILLION OZ

 

end

.

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

1. Today, we had the open interest in silver FALL BY 573 contracts from 189,478 down to 188,905 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787). THE FALL IN OPEN INTEREST WAS ACCOMPANIED BY A SMALL RISE IN PRICE AND FOR THE FIRST TIME WE ARE WITNESSING BANKER CAPITULATION.  BANKERS ARE LOATHE TO SUPPLY NEW SHORT PAPER AND THE LONGS CONTINUE TO ENTER THE ARENA PURCHASING WHATEVER SILVER THEY CAN AND WILLING TO TAKE ON OUR CROOKED BANKERS. 

(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 MONDAY night/TUESDAY morning: Shanghai closed UP 13.90 POINTS OR 0.43{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}   / /Hang Sang CLOSED DOWN 75.27 POINTS OR 0.28{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} The Nikkei closed UP 216.21 POINTS OR 1.11{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.43{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed DOWN at 6.6817/Oil DOWN to 47.37 dollars per barrel for WTI and 50.36 for Brent. Stocks in Europe OPENED DEEPLY IN THE GREEN , Offshore yuan trades  6.6930 yuan to the dollar vs 6.6817 for onshore yuan. NOW THE OFFSHORE IS WEAKER  TO THE ONSHORE YUAN/ ONSHORE YUAN WEAKER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS MUCH WEAKER TO THE DOLLAR AND THIS IS COUPLED WITH THE SLIGHTLY STRONGER DOLLAR. CHINA IS NOT HAPPY TODAY

Read More @ HarveyOrganBlog.com

Russia’s Plans for a “Fire Escape” Currency

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by Byron King, Daily Reckoning:

It may be a new year, but Russia makes no secret of its long-term dissatisfaction with U.S. politics, the dollar and, by extension, U.S. monetary hegemony in the world.

Russia has been under U.S./Western economic sanctions for over three years. Meanwhile, oil prices have been “lower for longer,” as the saying goes, due to global competition for market share from U.S. fracking. The overall impact of these phenomena has been costly to the Russian economy.

Still, Russia has persevered through all manner of external economic roadblocks. The Russian view is sanguine, and that, as time passes, the dollar is in trouble, for a lengthy list of reasons.

Indeed, Russia’s strategic intent is clear…

To escape the constraints and political risks of a dollar-denominated world. In fact, Russian leaders are forming a new currency arrangement that will allow them to do exactly that.

My partner Jim Rickards and I call this new phenomenon Russia’s “fire escape” currency. It’s coming down the line, and smart investors can profit from it.

First though, you need to understand the Russian view of the dollar.

At the highest levels of Russian governance, officials are deeply concerned with what they perceive as U.S. political meddling and bullying, based on the dollar.

Western economic sanctions are part of this. The U.S. and Western partners have blocked all manner of trade in goods and services with Russia, and extended the blockage to many Russian export items as well.

Plus, Russia chafes under restrictions on transferring funds via the international SWIFT system (Society for Worldwide Interbank Financial Telecommunication). There are many other issues related to the dollar, as well. Far too many to list here.

But, it’s fair to say that Russian policymakers hold profound distrust and resentment towards how the U.S. has, in their view, abused the status of the dollar as the predominant international reserve currency.

As far back as 2011, at a major conference in Russia, Vladimir Putin said, “They (USA) are living beyond their means and shifting a part of the weight of their problems to the world economy… They (USA) are living like parasites off the global economy and their monopoly of the dollar.”

Unsurprisingly, since 2011, Russia has pushed back against dollar-hegemony. Among other things, Russia has accumulated a large amount of gold.

In fact, in the past six years, Russia has more than doubled its official, publicly-acknowledged, state holdings of gold, as this chart makes clear.

Russia has broadcast news of this gold buildup to the entire world. Russian policymakers want people to know about the gold stash.

For example, according to a recent article in Russia’s Sputnik News, Russia’s monetary policy has the Kremlin’s central bank “Stacking Bullion Bricks Like There Is No Tomorrow.”

Many Russians regard those gold bricks as a “strategic reserve” for the country. That’s because Russian culture is imbued with a deep-seated military viewpoint, formed over many centuries of warfare between that nation and its external enemies and invaders.

So, Russians see physical gold as a critical substance, held back and out of normal usage, in case of need during an emergency.

Read More @ DailyReckoning.com