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The Vet

The Vet
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  • What Is Keeping SLV Up? [View article]
    Authorized Participants are also the major bullion banks and traders of silver, who dictate the paper price and use actual metal only when forced to deliver. They use the SLV holdings of physical as cost free inventory to backstop their trading activities as it is always available for delivery without notice at the spot price, a price they can set by their paper trades. The SLV store of metal is only available to the Authorized Participants and therefore can be accessed by them, without notice and in quantity if necessary, without them having to compete on the open spot or futures market.

    It is even available to Authorized Participants on credit, simply by borrowing SLV stock and redeeming it rather than selling it short.
    May 20, 2015. 09:36 PM | 3 Likes Like |Link to Comment
  • Goldcorp: Shares Could Selloff On U.S. Rate Hike [View article]
    For an alternate view on the effect of interest rate hikes on the markets and gold read ..
    Mar 8, 2015. 12:25 PM | Likes Like |Link to Comment
  • Gold Reserve Inc.: Potentially 80% Upside [View article]
    Andrew is correct. GRZ is first in line. While there are several other ICSID actions in progress there are legitimate legal challenges and processes still available to Venezuela which will delay a final and definitive payout figure in those cases. GRZ has cleared all the hurdles except the final collection process. Venezuela has to promptly settle the GRZ claim or risk triggering an immediate default on all of their outstanding bonds.
    Mar 6, 2015. 10:34 AM | Likes Like |Link to Comment
  • Update: New Greek Government Announces Opposition To Eldorado's Flagship Gold Mine [View article]
    Gold is money and Greece certainly needs that.. It doesn't matter who wants it or who doesn't; it is still saleable. It appears that the new government is aiming to follow the Venezuelan path of denying exploitation of "their" resources by others without realising that they don't have the capital or the expertise to develop those resources themselves. Gold doesn't magically mine itself and while still in the ground it has no value without investment in the facilities needed to extract and refine it for the market.

    Mines bring in money and create jobs; Greece needs both, and major projects take many years in incubation. To scuttle Eldorado's well advanced plans at this time would be the height of stupidity.
    Feb 1, 2015. 11:44 AM | 2 Likes Like |Link to Comment
  • Update: Gold Reserve Can Smell The Money [View article]
    If Venezuela does continue with their application to the French court of appeal, there is a good chance that the court will demand that Venezuela puts up a bond securing the full amount, pending the appeal process. If so, then the tactic primarily aimed at delaying payment, becomes pointless and Gold Reserve's chances of a quick full payment are enhanced.
    Nov 8, 2014. 11:22 AM | 2 Likes Like |Link to Comment
  • Newmont's Lack Of Acquisitions Has Been Frustrating [View article]
    Every US dollar buys over $1.10 AUD and Newcrest trades in Aussie dollars. There's a 10% bonus for starters!
    Oct 15, 2014. 04:51 PM | Likes Like |Link to Comment
  • Newmont's Lack Of Acquisitions Has Been Frustrating [View article]
    NEM certainly has missed some huge opportunities especially by not making a serious play for Newcrest which due to a series of blunders is trading at a fraction of it's actual value. While Australian costs were out of control in the past few years of the Australian mining boom, the recent drop in demand for mining personnel and equipment combined with a huge drop in the Aussie dollar is bringing those costs back in line with the rest of the world.
    Oct 13, 2014. 08:56 PM | Likes Like |Link to Comment
  • Gold - Why This Geopolitical Issue Is Different (Part II) [View article]
    Geopolitical issues are not programmed into most computerised trading systems save for a few headline data miners which work primarily by capitalizing on the reversion to the mean algorithms of the HFT trading houses who chase short term momentum and trends. This combination allows the computerised algorithms to scalp a few pennies a trade, and by their very volume they act as a counterweight to fundamentals and external geopolitical influences and reduce overall volatility.
    When a real "black swan" with definite economic effects hits the market, something most algorithms are not anticipating or able to respond to, then the markets are likely to go haywire until human intervention regains control.
    Aug 28, 2014. 02:30 PM | 2 Likes Like |Link to Comment
  • Gold Actually Thrives In Rising-Rate Environments [View article]
    The problem with all statistical methods of analysis is that you must have a fixed base to compute the figures. The US dollar is not a measurable thing! What is varying in all economic systems is the relative value of the world fiat currencies, not quantities or purity of the precious metals. A gram, an ounce, a kilo or a tonne are all measurable defined quantities reproducible everywhere on earth. A dollar (or any other fiat invention of government) cannot be defined or measured except against a fixed quantity of a real physical material measured in a reproducible manner. Measuring gold in dollars is just silly! Measuring dollars in the terms of a fixed quantity of gold makes more sense.
    Aug 24, 2014. 12:49 PM | 1 Like Like |Link to Comment
  • Gold Actually Thrives In Rising-Rate Environments [View article]
    When any stock makes a new high EVERY owner of that stock has unrealised gains! If they all try to sell then who will be the buyer?
    Aug 24, 2014. 12:36 PM | Likes Like |Link to Comment
  • Gold Actually Thrives In Rising-Rate Environments [View article]
    Despite the oft repeated comparison on returns from cash and gold, in truth cash is also a zero return asset. Cash only provides a return when it is "invested"; that is given to a third party who pays interest or a dividend. In that process "cash" becomes an "investment" and the capital is subject to risk which requires a premium to be paid. The notes in your wallet provide no return, and gold coins in your bottom drawer don't either. If you "invest" your gold by leasing it to a third party then it will provide a return but only by assuming the risk that it may not be returned. Inherently gold and cash are identical. Neither provide a return unless they are invested and the owner assumes some risk as a result. Cash on deposit in any bank is at risk; ask the people of Cypress. Cash used to buy government bonds is also at risk; check out the situation with Argentina.
    Aug 23, 2014. 01:54 PM | 2 Likes Like |Link to Comment
  • GLD: True Sentiment Shifts Or The Next Bull Trap? [View article]
    Why do we continue to hear this nonsense that "gold pays no interest" when comparing it to dollars or other currencies. Cash, in any currency also pays no interest; neither do many bank accounts.

    The only time that cash generates a return is when it leaves the control of the owner and becomes debt and the debtor pays a return or interest. Without that return cash has a proven record of continual depreciation of value.

    Central Banks lease gold continually and gain a return from it, but that entails counterparty risk, as does every "investment", whether it is cash, gold, silver or beans!

    Cash in your wallet provides no interest and continually loses purchasing power. Gold in your pocket provides no interest but it has retained purchasing power over the ages. If an owner of gold wishes, he can gain a return but only by relinquishing personal possession of it, just the same as cash.

    Immediately capital is "invested" by giving it to another party and it starts earning, then that capital is at risk. It may be the risk of default by the borrower, depreciation of the currency or government regulation. These risks have caused losses in every kind of investment regardless of whether that investment was originally fiat currency or real money, like gold.
    Jul 26, 2014. 02:43 PM | 3 Likes Like |Link to Comment
  • GLD: True Sentiment Shifts Or The Next Bull Trap? [View article]
    You seem to have ignored the clear signs that the current rising geopolitical tensions are having on the demand for US dollars as the world reserve currency.

    These signs are obvious and yet the US centric financial system seems to be ignoring them, or of considering where this is leading. It's not just Russia, China, India and Brazil who are taking positive steps to distance themselves from the dollar, but also rumblings in France and others in Europe who find that their independence in world affairs is being dictated to by the US with heavy handed financial penalties and imposition of sanctions, fines, restrictions of capital movement.

    Ultimately gold must come into the equation for many countries as a "politically neutral" asset to replace US debt as reserves.

    US treasuries are simply debt instruments of the US government. Why would any country ideologically opposed to US government policy not want to distance themselves from using the US dollar as their sole trading currency, when the US increasingly throws its muscle around by restricting the trading and exchange of USD in order to enforce their political agenda?
    Jul 22, 2014. 02:49 PM | 4 Likes Like |Link to Comment
  • Gold ETF outflows continue, but pace slows [View news story]
    "but investors keep pulling money out of gold ETFs" ?

    Surely you mean that the "Authorised Participants" (APs) keep raiding the GLD inventory in order to source real gold when their stocks are bare.

    The mechanism is simple. Gold prices are suppressed by paper gold short sales by the APs. GLD stock follows the spot price down and the APs buy that stock in order to redeem it for the real thing, gold, to fulfil their paper commitments for deliveries of real metal. The GLD inventory was simply used by the APs as immediately available reserves to use when the Chinese buyers who wanted delivery of actual gold wouldn't settle for American paper IOUs.
    Jul 1, 2014. 04:47 PM | 2 Likes Like |Link to Comment
  • Russia's War Against The Dollar Will Support Gold Long Term [View article]
    You seem to be blaming the wrong party when you said "I've always suspected GLD of gold hypothecation but saw no real evidence until that visit. " If anyone is guilty of double counting it would be the custodian not GLD. It makes little difference of course as the major source of double counting of GLD occurs "legally" on the stock market with naked short selling of GLD stock.
    Jun 11, 2014. 09:34 PM | Likes Like |Link to Comment