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The Vet

The Vet
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  • As September Ends, COMEX Registered Gold Inventories Drop To A New Low [View article]
    Gold is described by the general market as a commodity, but is treated by the banks and traders as a currency without the rules which apply to fiat currencies regarding fractional reserves and CB dictated reserve ratios. Banks are forced to maintain specific levels of reserves of fiat currency (no greater than 10:1 as a general rule) but there are no rules on fractional reserves required for gold transactions. For other commodities COMEX does have specific rules and limits governing trading which in general terms should be applied to gold and silver as well, but they have conveniently and increasingly turned a blind eye to their own rules.
    Oct 4, 2015. 01:59 PM | 1 Like Like |Link to Comment
  • Silver Eagle Premiums Double To 44%! [View article]
    High premiums have a negative effect on the buyers who, even if they realise that the quoted spot paper price on COMEX is not the price that anyone can actually buy real silver metal, get the feeling that somebody in the supply chain must be "ripping them off". If the wholesalers and the mints can get all the silver they need at the COMEX price without delays, manufacturing blanks for coins is not an expensive process nor one that requires highly trained staff or complex machinery. There seems to be no consistent problems or delays producing all the other metal coins that do not contain silver.
    Oct 3, 2015. 06:46 PM | Likes Like |Link to Comment
  • Will The Labor Market Bring Down GLD? [View article]
    Curiously sales of "gold" by ETF investors in GLD is described as a "lack of demand" but it is a lack of demand for "paper gold" not actual metal. Unless GLD tossed out metal in the trash, somebody bought that gold; somebody who wanted real gold and not paper promises.
    Sep 30, 2015. 10:46 AM | 3 Likes Like |Link to Comment
  • Is Gold Worth A Place In Your Portfolio? [View article]
    Invariably someone always brings up the hoary old one that "gold pays no interest" . Of course neither does cash, most cheque accounts and almost all collectibles and other assets. In order for any investment to pay interest or generate a return, it requires the capital be entrusted to a third party and that always entails risk. Interest or returns such as rents involves giving up in full, or in part control of the asset and the assumption that there is always the risk of loss either through capital loss, damage or counterparty failure. With gold in your possession this risk is minimised or eliminated and for that reason the only return is from capital appreciation or currency devaluation.
    Sep 23, 2015. 12:09 PM | 4 Likes Like |Link to Comment
  • Silver's Vexing Slumber Paving The Way For Major Reversal Higher [View article]
    I have heard of the internet, so I checked a few sites of companies that I know sell silver and many were offering to buy 90% coins at over $17 an ounce, which is well over spot. Also I noticed that virtually all of them were out of stock, or could not give a delivery date (or even quote a price) for the majority of the silver products they listed as stock items. That included 1000 oz COMEX bars which seems odd seeing that all they would normally need to do is lock in a long position at spot and take delivery in a known time frame, and pass on the bar to the retail customer. Customers are always reticent to "overpay" for an item that they see priced on COMEX at a lower price which explains the lack of premium on the big bars. It's easy to quote a cheap price and then place an "out of stock" flag on it......
    Sep 13, 2015. 01:20 PM | Likes Like |Link to Comment
  • Silver Is Still Searching For A Bottom [View article]
    Mlonz; This has been noted by many people at a retail level and there appears to be shortages of many silver investment products. It has not been reported at a wholesale level however and it seems that there is still supply available to the wholesale market. There is always some resistance by retailers to dropping prices to match the COMEX simply because the process of turning a COMEX contract into a retail product takes time and money and there is a strong possibility that by the time that silver is manufactured into retail product and delivered to you the price may have increased substantially.
    While some commentators remark that the retail buyer can always buy silver (or gold) at or near spot through Gold Money, Bit Gold, one of the Sprott ETFs and Bullion Vault, they fail to add in the significant costs of converting a "paper position" in any of these entities into a delivered physical product in your hand. The reality is that you don't have real precious metal in your possession (not paper - regardless of how it is described by the promoter of the fund) until the physical item is delivered into your hands and you have paid all the costs, in addition to the spot price, that you "bought" it for.
    Aug 30, 2015. 02:41 PM | 5 Likes Like |Link to Comment
  • Silver Is Still Searching For A Bottom [View article]
    While several of the pure silver miners are increasing production, they are not the major source of silver in the market. Most silver is produced as a by-product of mines producing copper, gold and lead. Lower demand for copper, which leads to lower production, will directly impact the supply of silver to a far greater extent than the production levels of the pure silver miners. I also suspect that streaming companies like Silver Wheaton will ultimately play a part in price stabilization of silver as they get a bigger slice of the available supply of silver they will be able to have more influence on the price.
    The silver spot price is set on the paper market which daily "trades" greater quantities of silver than is produced or is available in stockpiles. Apart from gold, no other commodity trades like this (because it is actually illegal) and it is a potentially unstable price setting system, subject to huge swings over short periods.
    Aug 30, 2015. 02:23 PM | 4 Likes Like |Link to Comment
  • Alberta to boost carbon taxes as part of climate change plan [View news story]
    Hmmm... Wrong in fact; even if true, the idea that CO2 and methane a couple of feet underground is prevented from ever entering the atmosphere is somewhat fanciful. If this were the case then sequestering CO2 would be simple, cheap and effective and the atmospheric "greenhouse gas" scare but a faint memory.

    "Although considered "subterranean" (underground, hidden) in habit, the members of the genus Coptotermes regularly construct aerial (above ground) nests within the structures that they infest. The possibility of both a subterranean nest close to the infested structure and an aerial within the structure can greatly increase the damage potential of these termites."
    Jun 25, 2015. 09:00 PM | 3 Likes Like |Link to Comment
  • Alberta to boost carbon taxes as part of climate change plan [View news story]
    Subterranean? Google "northern territory termite mounds"; look at the images and see for yourself.. These termite species cover millions of acres of almost a third of northern Australia and many species live in trees; hardly subterranean! As you say - wonderful - as long as you get it right!
    Jun 25, 2015. 08:06 PM | 3 Likes Like |Link to Comment
  • Alberta to boost carbon taxes as part of climate change plan [View news story]
    Termites produce more CO2 than burning of fossil fuels world wide. Termites also release significant amounts of methane, another "proven" "greenhouse gas". Alberta has very few termites, (none in the areas of oil sands production) so why doesn't Alberta (and Canada as a whole) get a "carbon credit" for their lack of termites when other countries clearly allow termites to run wild and produce CO2 far in excess of their "official" emissions? Termites can be controlled so any argument that termite CO2 is "natural" and somehow different from the CO2 produced by burning fossil fuels is clearly spurious.
    Jun 25, 2015. 06:55 PM | 2 Likes Like |Link to Comment
  • 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