by Dave Kranzler, Investment Research Dynamics:
IRD is honored to present another guest post from Stewart Dougherty
Dictatorship (noun): Definition #3: absolute power or authority (Websters);
Def. #2: absolute, imperious or overbearing power or control (Random House);
Def. #3: Absolute or despotic control or power (American Heritage);
Def. #3: Absolute or supreme power or authority (Collins English Dictionary);
Def. #1: A type of government where absolute sovereignty is allotted
to an individual or small clique (Wikipedia).
“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained, you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” Sun Tzu, The Art of War
In recent weeks, the War on Gold, which is a subset of the broader War on Human Freedom, has sharply intensified, with massive, multi-billion dollar naked short price raids now being launched on a weekly and even daily basis by the criminal, state-sponsored price manipulators. This escalation proves the supreme importance to the Deep State financial elite of the maintenance of their gold price dictatorship, which is a vital component of their long term, systemic campaign of financial plunder.
The elitists have no problems whatsoever with stratospheric stock and bond prices; 5,000 year low interest rates; $450 million Da Vinci’s; $250 million private homes; $50,000,000 annual salaries for circus masters, whose role in keeping the masses distracted and dumb is vital; $1.9 million Aston Martins; $100,000 Air Jordan sneakers, or any of the other prices that have now gone into outer space.
But there is one thing they will not accept: an honest, free market price for gold. Because while all debauchery under the sun is permitted and encouraged in the Castle of Fraud and Corruption they have constructed and in which they revel, one thing is strictly prohibited: the utterance of truth. Being monetary truth when free to speak, gold is their deadliest enemy. Therefore, it is silenced, in the same way truth tellers are silenced in all dictatorships.
The vast majority of people, aside from a small, enlightened minority who refuse to poison their minds by ingesting mainstream media (MSM) fake news, propaganda and brainwashing, do not yet realize what they are up against in the wars that have been declared against them, and are therefore at serious risk. For those who wish to survive the wars, there has never been a greater need to know the enemy and know yourself.
As the gold price war becomes manic, so has the MSM’s anti-gold propaganda campaign, with their attempts to smear gold now a clinical obsession.
In a prime example of their over-the-top anti-gold propaganda, on 10 November 2017, the Financial Times, a long-time Deep State bullhorn and puppet, ran an article entitled, “Gold is the new cocaine for money launderers.” In this screed, the author beat the dead horse of the NTR Metals gold import scheme. This operation, whose total dollar yield was an infinitesimal fraction of the massive sums stolen by the financial Deep Statists in their forty year gold price manipulation crime, was already the subject of an over-dramatized Bloomberg Businessweek propaganda piece published on 9 March 2017, entitled “How to Become an International Gold Smuggler.” Apparently, the MSM is running so short of new material with which to try to demonize gold, that it is now forced to recycle old, stale non-stories to keep the smear machine going.
In the article, the MSM propagandist states such things as: 2017 has seen, according to his one time Goldman Sachs source, a “dramatic crash in [physical gold coin] demand,” that interest in gold coins is linked to “political conservatism, or anarcho-libertarianism” and “end of the world right wing sentiments,” that gold has been implicated in a “conspiracy to commit money laundering,” that gold is “financed by people in the narcotics trade,” that it comes from “illegal mines and drug dealers in Peru, Bolivia and Ecuador,” that “the federal authorities assume the NTR Metals [case] represented only a fraction of illegally sourced and financed gold,” that therefore the US attorney is broadly investigating the gold industry, that gold is “produced by exploited workers,” that “crude [gold] extraction techniques create serious and lasting environmental damage,” that gold plays an important part in “tax evasion,” that it is related to American gun sales, which the author abhors; that “drug dealers [use] gold imports as a way of laundering their proceeds,” and that “they came to realize that illegal gold [is] an intrinsically better business” than drug dealing; to name but a few of the aspersions cast against gold in the short article. As we can see, when it comes to their smear jobs, the MSM flings at the wall all the mud it can fit in its hands, hoping that some of it might stick.
As is always the case with the MSM’s consistently negative, biased and dishonest reporting on gold, no mention was made in the article of the Deep State financial elite’s criminal gold price manipulation fraud that has been perpetrated non-stop for nearly forty years and that has resulted in a massive, $1,000,000,000,000.00+ theft from its victims. This is because the MSM is the Deep State’s in-house public relations agency, whose job is to whitewash the elitists’ crimes, no matter how egregious they are.
But buried in the article was an important clue that the Deep Statists are concerned they are losing the War on Gold, which we will further explore later in the article. It turns out that the Deep Statists’ paranoia about and rage toward gold might be entirely justified, because more than ever in the past 37 years, gold is poised to tell the world what it knows, and this will absolutely annihilate them.
Many people are completely baffled as to why, with so many serious fiscal, financial, monetary, economic, social, and geopolitical problems in the world, the Deep Statists remain so mono-maniacally fixated on demagogically denigrating gold and controlling its price.
Read More @ InvestmentResearchDynamics.com
by Torgny Persson, BullionStar:
A popular phrase in segments of the mainstream financial media is that “You Can’t Eat Gold”. We don’t know who first uttered this comment, but it was more than likely a talking-head or Wall Street analyst on CNBC or Bloomberg.
The disparaging claim seems to be based on concluding that in a financial or monetary crisis, if you own gold, that “You Can’t Eat It”. And so, according to the logic of whoever came up with the phrase, this would make gold useless during a financial crisis.
In addition to the misleading and irrelevant nature of the comment, which we will discuss below, the claim that “you can’t eat gold” is actually factually wrong. And that is because you can eat gold. And also drink it.
While gold can be eaten, it cannot be digested. But it is non-toxic to the human body. And it does not react chemically in the human body. That is why gold can and does appear safely in a number of foods and drinks, not surprisingly foods and drinks which are predominantly at the luxury end of the market.
Some readers will have heard of Goldschläger, a Swiss/Italian liquor which has flakes gold suspended within it. On a similar note, a Swiss gin called ‘Studer Swiss Gold Gin’ also contains flakes of gold. Staying within Switzerland, you can also buy edible gold products including “Swiss chocolate truffles with gold flakes”. Not to be outdone by the Swiss, the Emirates Palace Hotel in Abu Dhabi (United Arab Emirates) offers a ‘Palace Cappucino” which is sprinkled with gold flakes.
In Selfridges department store in London, you can buy a “billionaires soft serve” ice cream cone topped with both sprinklings of gold leaf and a gold leaf covered flake. While in New York, in Manhattan’s Upper East Side, a high-end restaurant offers a “Golden Opulence Sundae” topped with gold leaf, for US$ 1000 a glass. Back in England, a specialist cheese producer in Leicestershire created Britain’s most expensive cheese – “Clawson Stilton Gold“, a stilton cheese interwoven with edible gold leaf and shot-through with gold liqueur. These uses of gold in food and beverages illustrate that gold is a sought after and prestigious substance, but also that gold is real, that gold is tangible and that gold is of value.
The logic of the “you can’t eat gold” comment, as well as being wrong, is also flawed. Because by extension, you can’t eat any of Wall Street’s favorite investment assets. Imagine chewing on financial securities or fiat currencies. But whoever coined the phrase “you can’t eat gold” conveniently failed to mention this on CNBC. We would challenge anyone, especially CNBC and MSNBC, to eat share certificates or bond certificates or the electronic equivalent thereof.
Nor can you eat the electronic coins of cryptocurrencies such as Bitcoin, Ethereum’s Ether or Litecoin. Real assets such as art, antiques, real estate, agricultural land, or vintage cars are also off the menu. A possible exception is that can drink an expensive investment wine collection, but would you really want to do this, as then you would be consuming your principal investment?
But beyond the fact that you can in fact eat gold, and that Wall Street never points out the non-edibility of stocks and bonds, there are many beneficial reasons to buy and own investment grade physical gold of which we recently pointed out in 28 reasons to buy and own physical gold. What we are talking about is real physical gold in the form of gold bars and gold coins. This is true both during times of financial crisis, and also over the long-term as a form of investment and savings.
Gold is without doubt the ultimate safe haven asset. In times of financial crisis and turmoil, investors and savers flock to gold as a wealth preservation strategy. The reason for investing in gold during times of crisis is based on the fact that investors instinctively know that the gold price behaves differently to the prices of other assets, particularly during crises. This is because the gold price moves independently of economic and business cycles.
In times of war and social upheaval, physical gold’s benefits also come to the fore. Since gold has a high value to weight ratio, significant personal wealth can discreetly be carried in the form of gold across borders and frontiers and within areas of conflict.
Since gold is a universal money supported by a highly liquid global market, it will always be accepted everywhere at the going gold price. Gold can easily be sold. Gold can easily be traded or even bartered with, especially in non-functioning economies where the local paper currency has collapsed or has become worthless. The fact that gold coins are regularly issued to elite military personnel in areas of conflict attests to gold’s critical benefits in times of monetary crisis and localized economic collapse.
But gold is not just of use during financial crises. It is also an essential asset to own over the long-term as a strategic form of saving and investment. Physical gold retains its purchasing power over long periods of time. This is in contrast to fiat currencies issued by the world’s central banks, which generally lose most of their purchasing power over time. In other words, gold is a great hedge against inflation, as the gold price adjusts upwards to offset inflation. The gold price even adjusts to inflation expectations, hence it is sometimes called an inflation barometer and is watched like a hawk by central bankers because the gold price signals future inflation.
Read More @ BullionStar.com
by Peter Schiff, SchiffGold:
Since pushing above $1,300 in late August and then falling back below that level again in September, gold has been trading within a very narrow range and volatility in the market has remained low. But during an interview on CNBC Futures Now, metals expert Michael Dudas of Vertical Research said he sees a breakout on the horizon.
And he said he thinks the breakout could come sooner rather than later as the December Fed meeting approaches. Federal Reserve actions, along with continued wrangling over tax reform will likely increase volatility. That will spark a breakout. And Dudas said he thinks it will be on the upside.
With this low volatility, we think an event could spark it either way. We think it’s going to spark higher.”
Dudas described the current gold market as “eerily quiet.” Even so, the yellow metal is still on track for its largest yearly gain since 2010. Gold prices are currently up around 12% on the year. Dudas said he expects the gains to continue into 2018, with gold eclipsing the $1,400 mark. He cites two fundamental reasons for optimism.
A year ago at this time, the dollar was about to make a new high in January. Now, the dollar is in a pretty good trench – a downtrend – which we think will continue. In addition, we do think that inflation expectations, which have been muted, and the Fed is hoping and praying they can get those expectations higher – we think that will turn around in 2018, leading to higher inflation expectations, remaining low real interest rates. And that’s typically supportive for gold and silver historically.”
Some analysts believe higher interest rates could drag gold down because it will give the Fed the green light to continue pushing interest rates higher. Dudas takes a more fundamental approach. As Peter Schiff pointed out a podcast back in October, inflation is bullish for gold. In fact, inflation is one of the primary reasons to own gold.
Read More @ SchiffGold.com
In a surprising, and unexpected warning – which seemingly came out of nowhere – Russia’s Finance Minister Anton Siluanov cautioned Washington yesterday that “If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism.”
The comment appears to have been prompted by consideration of escalating US/EU sanctions which could ultimately impact Russia’s offshore held gold and reserves. If sanctions include the freezing of foreign accounts of the central bank, it would be equal to declaring financial war on Russia, Siluanov said, although he added that he considers such a scenario unlikely (for now).
After making the point that Russia’s budget is prepared for the possibility of tougher US/EU sanctions, RT reports that Siluanov warned if the west include the seizure of Russia’s foreign exchange reserves, it would be regarded as a “declaration of a financial war.”
According to Siluanov, the budget takes into account the risk of income shortfalls. The budget is based on oil prices at $40 per barrel, which is almost a third lower than the current price.
The budget “has a margin of safety in case of restrictions and sanctions.” It also includes losses incurred by a probable ban on investment in Russian government bonds for foreign funds. The US Treasury is currently considering such penalties.
“If we did not have a margin of safety, then it would be easy to weaken us. And then, our so-called friends would say – if you want to get help from the International Monetary Fund, you must do this and that,” said Siluanov.
If sanctions include the freezing of foreign accounts of the central bank, it would be equal to declaring financial war on Russia, Siluanov said. He added that he considers such a scenario unlikely.
As a reminder, in June, Reuters reported that soon after the Crimea reunification with Russia, the Central Bank of Russia allegedly withdrew about $115 billion from the New York Fed. After about two weeks, Russian officials reportedly returned most of the money to its Fed account.
Read More @ ZeroHedge.com
by Harvey Organ, Harvey Organ Blog:
GOLD: $1283.10 DOWN $12.30
Silver: $16.56 DOWN 32 cents
Closing access prices:
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: $1298.33 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: $1295.95
PREMIUM FIRST FIX: $2.35
SECOND SHANGHAI GOLD FIX: $1300.95
NY GOLD PRICE AT THE EXACT SAME TIME: $1295.80
Premium of Shanghai 2nd fix/NY:$5.15
LONDON FIRST GOLD FIX: 5:30 am est $1294.85
NY PRICING AT THE EXACT SAME TIME: $1294.60
LONDON SECOND GOLD FIX 10 AM: $1283.85
NY PRICING AT THE EXACT SAME TIME. 1284.10
For comex gold:
TOTAL NOTICES SO FAR: 1064 FOR 106,400 OZ (3.309 TONNES)
Total number of notices filed so far this month: 886 for 4,430,000 oz
Let us have a look at the data for today
In silver, the total open interest FELL BY A CONSIDERABLE 4813 contracts from 191,084 DOWN TO 186,272 WITH RESPECT TO YESTERDAY’S TRADING WHICH SAW SILVER FALL 17 CENTS AND NOW WELL BELOW THE HUGE $17.25 SILVER RESISTANCE. WE HAD CONSIDERABLE LONG COMEX LIQUIDATION. HOWEVER WE WERE ALSO NOTIFIED THAT WE HAD ANOTHER LARGE NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE : 3061 DECEMBER EFP’S WERE ISSUED ALONG WITH 1821 EFP’S FOR MARCH FOR A TOTAL ISSUANCE OF 4882 CONTRACTS. I GUESS WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. YESTERDAY WITNESSED 820 EFP’S FOR SILVER ISSUED.
RESULT: A FAIR SIZED FALL IN OI COMEX WITH THE DROP IN SILVER PRICE OF 17 CENTS. HOWEVER WE HAD ALL OF OUR COMEX LONGS WHICH EXITED OUT OF THE SILVER COMEX TRANSFERRED THEIR OI TO LONDON THROUGH THE EFP ROUTE: FROM THE CME DATA 4882 EFP’S WERE ISSUED TODAY FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. IN ESSENCE THE DEMAND FOR SILVER PHYSICAL INTENSIFIES GREATLY. WE REALLY GAINED 69 OI CONTRACTS i.e. 4882 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 4813 OI COMEX CONTRACTS.
In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.933 BILLION TO BE EXACT or 133% of annual global silver production (ex Russia & ex China).
FOR THE NEW FRONT OCT MONTH/ THEY FILED: 0 NOTICE(S) FOR NIL OZ OF SILVER
In gold, the open interest COLLAPSED IN A MUCH GREATER FASHION TO WHICH WE HAVE WITNESSED DURING THE PAST TWO YEARS AS WE APPROACH AN ACTIVE DELIVERY MONTH LIKE THIS ONE, I.E. DECEMBER. THE TOTAL OI FELL BY 34,986 CONTRACTS DOWN TO 503,810 DESPITE THE RISE IN PRICE OF GOLD ($0.55) WITH RESPECT TO YESTERDAY’S TRADING. (PRELIMINARY NUMBERS WERE DOWN BY 12,000 CONTRACTS SO SOMETHING WENT HORRIBLY WRONG FOR THE CME). HOWEVER THE TOTAL NUMBER OF GOLD EFP’S ISSUED TODAY TOTALED ANOTHER 13,058 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 7171 CONTRACTS AND FEB SAW THE ISSUANCE OF 5887 CONTRACTS. ??? (EMERGENCY??) The new OI for the gold complex rests at 503,810. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE WITNESS THE HUGE NUMBER OF EFP TRANSFERS. 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 METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER AND ON TOP OF THAT IT IS TAKING A FURTHER 13 WEEKS TO OBTAIN PHYSICAL FROM THE POINT WHEN FORWARDS BECOME DUE. IN ESSENCE WE HAD A NET LOSS OF 21,928 OI CONTRACTS: 34,986 OI CONTRACTS LOST AT THE COMEX OI BUT OF THAT TOTAL 13,058 OI CONTRACTS NAVIGATED OVER TO LONDON. THE CME HAS BEEN VERY TARDY IN THEIR REPORTING OF EFP ISSUANCE. MY BET IS THAT WITH TOMORROW’S READING WE WILL HAVE A SURPLUS OF 22,000++ OI NAVIGATING TO LONDON.
YESTERDAY, WE HAD 10,304 EFP’S ISSUED.
Result: A HUGE SIZED DECREASE IN OI WITH THE TINY SIZED RISE IN PRICE IN GOLD YESTERDAY ($0.55). WE HAD AN LARGE NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 13,058. THERE OBVIOUSLY DOES NOT SEEM TO BE ANY PHYSICAL GOLD AT THE COMEX AND YET WE ARE APPROACHING THE HUGE DELIVERY MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS NO GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 13,058 EFP CONTRACTS ISSUED, WE HAD A NET LOSS OPEN INTEREST OF 21,928 contracts:
13,058 CONTRACTS MOVE TO LONDON AND 34,986 CONTRACTS REMOVED FROM THE COMEX.
we had: 0 notice(s) filed upon for NIL oz of gold.
With respect to our two criminal funds, the GLD and the SLV:
Today, a big change in gold inventory at the GLD/a withdrawal of 2.66 tonnes
Inventory rests tonight: 839.55 tonnes.
TODAY WE HAD NO CHANGES IN SILVER INVENTORY AT THE SLV:
INVENTORY RESTS AT 317.130 MILLION OZ
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver FELL BY 4813 contracts from 191,085 DOWN TO 186,272 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE LOSS IN PRICE OF SILVER PRICE (A LOSS OF 17 CENTS ). HOWEVER, OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER HUGE 3061 PRIVATE EFP’S FOR DECEMBER (WE DO NOT GET A LOOK AT THESE CONTRACTS) AND 1821 EMERGENCY EFP’S FOR MARCH FOR A TOTAL OF 4882 EFP CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE ARE NOW WITHIN ONE DAY OF FIRST DAY NOTICE AND THIS IS THE SCENE WHERE IN THE PAST WE DID SEE MASSIVE COMEX OI CONTRACTION ALTHOUGH IT WAS MORE PRONOUNCED IN GOLD THAN WITH SILVER. IT STILL CONTINUES UNABATED AND WE NOW KNOW THE REAL REASON FOR THE CONTRACTION: THE TRANSFER OF OI TO LONDON. TODAY WE HAD CONSIDERABLE COMEX SILVER COMEX LIQUIDATION. BUT IF WE ADD THE OI LOSS AT THE COMEX (4813 CONTRACTS) TO THE 4882 OI TRANSFERRED TO LONDON THRO
UGH EFP’S WE OBTAIN A NET GAIN OF 69 OPEN INTEREST CONTRACTS,
RESULT: A LARGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 17 CENT FALL IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). BUT WE ALSO HAD ANOTHER 4882 EFP’S ISSUED.. TRANSFERRING OUR COMEX LONGS OVER TO LONDON .
2.a) The Shanghai and London gold fix report
2 b) Gold/silver trading overnight Europe, Goldcore
and in NY: Bloomberg
i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed UP 4.21 points or .13% /Hang Sang CLOSED DOWN 57.02 pts or 0.19% / The Nikkei closed UP 40.96 POINTS OR 0.49%/Australia’s all ordinaires CLOSED UP 0.48%/Chinese yuan (ONSHORE) closed DOWN at 6.6027/Oil DOWN to 57.79 dollars per barrel for WTI and 63.80 for Brent. Stocks in Europe OPENED GREEN EXCEPT LONDON. ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6027. OFFSHORE YUAN CLOSED DOWN AGAINST THE ONSHORE YUAN AT 6.6039 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS HAPPY TODAY.(MARKETS STRONG)
Read More @ HarveyOrganBlog.com
by David Smith, Money Metals:
An oceanic-scale demand push from “all parts Far East” is building, as the desire to own gold and silver promises to place an increasingly solid foundation for years to come.
China, India, and Southeast Asia have historically accumulated precious metal as a savings vehicle, a hedge against political uncertainty (e.g. India’s surprise call-in last year of 80% of the country’s paper currency), and as an expression of affection. China’s newly-emerging affluent middle class alone is set to become larger than the population of the U.S. Frank Holmes collectively refers to these elements as “love and fear trades”.
China’s One Belt-One Road (OBOR) Initiative – the world’s largest-ever construction project – is designed to link 60% of the world’s population in a cooperative financial and economic matrix. Taken together, the continued migration of gold supply from West to East is baked into the cake.
For a deeper understanding of how and why China is leading the charge – and going about capturing an outsized portion of the global gold supply – see my essay from last summer, titled China’s Get the Gold Plan: Part II.
Even as the West ships much of its remaining gold eastward (largely via Swiss refineries who “repurpose” it into .9999 fine gold), countries like Germany and Turkey have stepped up to the plate, becoming noteworthy demand drivers in their own right.
Fund managers are finally realizing that gold deserves to be a permanent portfolio asset holding category. In The Morgan Report and in Riches in Resources, David Morgan has written extensively about this for both individual investors and institutional clients. Just one more “silent lever” by which a long-term, rock-solid foundation is being built under gold’s demand… and price.
Metaphorically-speaking, available data strongly suggests (with evidence mounting sharply since 2015), that over the next few years an ongoing narrowing of the global gold supply’s veins and arteries is leading to a series of demand seizures, climaxing in a systemic “heart attack”.
South Africa’s Witwatersrand Basin has been the source of almost 40% of all the gold ever recovered. But the government has become so obdurate that its current declining rank as the world’s 7th largest producer looks set to fall even more.
They have once again decided to “amend” the country’s mining code, demanding higher royalties and increased Black Empowerment participation, leading to a dire warning from the rating agency Moody’s. It states that “If the substantial expansionary investment required to reconfigure loss-making mining operations and make them profitable is not forthcoming, mines will either be restructured or closed.”
South Africa’s next move on the resource supply chessboard follows recent gambits against other large gold producers in Indonesia (Freeport) and Tanzania (AngloGold). Dave Forest, who keeps track of this in his letter, Pierce Points, remarks:
Mining “nationalism” has re-introduced one of the most crippling elements a mining producer – or explorer can face…unpredictability.
If there is no certainty that some sort of “rule of law” will prevail, then trying to anticipate/ predict how much gold and copper will/can be produced in a given operation flies out the window. Look how much is going on right now as gold hovers “merely” around $1,300 per ounce. What do you think that this witches’ brew of greed, corruption, power-grabbing and incompetency is going to produce when gold trades – as it will before long- at $2,000, $3,000, $5,000 or more?
Even without heavy-handed regulations, South African mining would be facing increasing costs as they go deeper to access gold and platinum. The way things are going, the last nails in the coffin appear set to be hammered into place. In the early 1970s, annual production topped out at an amazing 1,000 tons. Since 2000, gold production has literally fallen off a cliff, as it spirals downward toward a paltry 200 tons/year.
Pierre Lassonde is a giant in the mining business. In 1982, he co-founded Franco-Nevada, the first publicly-traded gold royalty company, which now has a seven billion dollar market cap. He played a critical role in the growth of Newmont Mining, the world’s second largest gold producer. When he speaks, you and I should pay attention… In a recent interview, discussing the global gold supply going forward, Lassonde said:
Production is declining and this is going to put an enormous amount of pressure on prices down the road. If you look back to the 70s, 80s, and 90s, in each of those decades the industry found at least one 50+ million ounce gold deposit, at least ten 30+ million ounce deposits and countless 5 to 10 million ounce deposits. But if you look at the last 15 years, we found no 50 million ounce deposit, no 30 million ounce deposit, and only very few 15 million ounce deposits. So where are those great big deposits we found in the past? How are they going to be replaced? We don’t know. We do not have those ore bodies in sight…
Read More @ MoneyMetals.com
by David Morgan, Market Oracle:
The ongoing debate in the industry is whether or not there is a surplus or a deficit of silver supply. However, to silver expert David Morgan of The Morgan Report, there hasn’t been a deficit in at least a decade. “In the past, we were in a deficit, from 1990 to 2006. From 2006 until now, we’ve been in a surplus,” he told Kitco News at the Silver & Gold Summit in San Francisco. “We are not and have not been in a silver deficit for the last 10 years.” However, Morgan remains optimistic that silver prices can move higher. “We have a good base here, we’re at the launch point in next 3-6 months,” he said. “2018 is going to be a good year for silver.”
Mr. Morgan has followed the silver market for more than thirty years. He wrote the book, Get the Skinny on Silver Investing. Much of his Web site, Silver-Investor.com, is devoted to education about the precious metals, it is both a free site and does have a members only section. To receive full access to The Morgan Report click the hyperlink.
Read More @ MarketOracle.co.uk
by Craig Hemke, Sprott Money:
The Bullion Bank trading desks, which are routinely short thousands of metric tonnes of digital silver, are once again attempting to keep price below the 200-day moving average.
And why is this so important to The Banks? For the most basic reasons of all…greed and profit.
The only data available to measure the size of the Bank net short position in Comex silver comes from the corrupt and compromised CFTC. Though it seems useless to use CFTC-generated data, unfortunately we have no other choice. To that end, as of the most recent reporting, we find Bank positions as follows:
• As measured by the latest Commitment of Traders Report, the NET position of the “commercials” in Comex silver is 80,436 contracts short. As measured by the latest Bank Participation Report, the NET position of the 24 Banks involved in Comex silver is 69,473 contracts short. For the sake of simplicity, let’s just use the smaller BPR number and round it up t0 70,000 contracts NET SHORT for The Banks that trade on the Comex.
At 5,000 ounces of digital silver per Comex contract, 70,000 contracts is a net short position of 350,000,000 ounces or about 40% of total 2017 global mine supply. (It’s also about 150% of the total amount of silver allegedly held in the Comex vaults but we’ll save that topic for another day.)
For the purpose of this discussion, let’s just look at that 350,000,000 ounce NET short position. Consider the size of that position and then do the simple math of realizing that a $1 move in either direction means a $350MM trading gain or trading loss for these Bank desks.
Now, getting back to the title of this post and The Banks desire to keep price below the 200-day moving average. Why is this so important to them? Again, it’s greed and profit.
As you can see below, on just three previous occasions in 2017, price has been able to briefly move above the critical 200-day MA. In February, the subsequent rally in price was about 60¢. In April, the move was nearly identical but in August, price moved over $1 in two weeks once the 200-day was breached.
So why defend the 200-day again now? First and foremost, The Banks (because of their massive NET short position) do NOT want a rally into year end that might prompt even more interest and speculator buying into 2018. More important though is the simple greed factor as another $1 move up in price would be a $350MM paper loss against their net short position!
Read More @ SprottMoney.com