Jesse reports that in Fractional Gold Reserve System the leverage has reached the all-time-high of 62 owners per ounce of Gold. With Janet Yellen set for hearing tomorrow we can expect another hit and run Gold accident in the DC area, but so far US Dollar has fallen out of bed today and Gold is holding up at its four weeks low. Where LBMA is going to get the physical Gold for delivery at this level of prices? We doubt that China will accept Bitcoin instead of Gold for its currency reserves any time soon.
Bitcoin Heist And Jim Rickards On Taper, Janet Yellen and Gold GLD, MUX, TNR.v, GDX
"In this very interesting episode RT is reporting about the hunger for the FIAT Currencies alternatives and how it is driving the Bitcoin Bubble, but it is not The New Gold or even close to it - as we have written before. New security concerns are reported with the cryptocurremcy and Jim Rickards dissects the Currency War situation in the ECB, BOJ and FED race to the bottom. You will find out why Janet Yellen can not Taper and what is behind the Gold and why Gold Standard is still valuable option even today.
After our yesterday US dollar chart observations it has fallen out of bed so far today - maybe somebody already has received Janet Yellen's testimony for tomorrow's nomination hearing."
GATA: State Dept. Memo Describes Gold Suppression, But State Denies Having Any Gold Records GLD, MUX, TNR.v, GDX
"We continue our Gold Manipulation Chronicles and research. This week is already very busy with revelations about The FED and its Gold Suppressing policies."China, India, Turkey and Thailand Buying Record Amount of Gold - What Do They Know The Others Don't? GLD, MUX, TNR.v, GDX
"These two charts present the big picture in Gold Supply and Demand the best. When Central Banks are distorting the markets by suppressing the Gold price the increased Demand is overwhelming the diminishing Supply. The Game of Musical Chairs in Fractional Reserve Gold System continues, but it is very close to its logical conclusion with COMEX deliverable Gold being leveraged of 59 times at least."COMEX Gold Claims Per Deliverable Ounce Rises To Record High 60.38 GLD, MUX, TNR.v, GDX
"Jesse reports about another escalation in the Scam Of The Century - ongoing Game Of Music Chairs in the Fractional Gold Reserve System. It will definitely become the one of the most important events in the Gold market history, there are rumours about impending explosion of the one of the LBMA members, but we even do not need them to materialise. Just check the numbers in the record breaking deliveries of Gold to Asian countries this year."
Jesse's Cafe Americain:
The setup for this year end looks interesting. Open interest for December itself has declined somewhat from last year, but the availability of gold for delivery at these prices has fallen quite precipitously. Rik Green has some things to say about this here.
The standard manipulation play has been to hit the prices hard, and hope to shake out weak hands as well as pry more bullion from the ETFs which the bullion banks manage. This was done in early December 2011, and prices recovered their level by the end of January. In December 2012 the great price decline of 2013 was already underway, in a reaction to the denial of Germany's request for the return of their nation's gold.
A conventional pricing action this December would set up a potential short squeeze into the new year that could prove to be impressive once it got going. And it might become uncontrollable should a run develop since it would also presumably increase the physical offtake in the broader markets. Wiser therefore to take some of the dirtier money off the table now, and let the market regain some of its equilibrium before the end of year.
This is of interest only for those who look at markets in greater than two week increments, which is not one of Wall Street's stronger suits. One should not underestimate the brazen audacity of the TBTF gang. They have been said to sell their customers very bad advice and deadly poisoned deals with near impunity, or haven't you heard?
So it is hard to say exactly how these things will be resolved since the greater physical market, the dog that is being wagged by the Comex tail, is still too opaque for reliable forecasting. But I do not see how this can end any way but messily, unless cooler heads prevail fairly soon.
Let's see what happens.