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The Vet

The Vet
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  • Goldcorp's Terrific Execution Makes It A Solid Long-Term Pick [View article]
    Goldcorp Sweetens Hostile Bid For Osisko To C$3.6 Bln
    As the bidder the market automatically punishes them. It's a good operating mine with potential for additional reserves operating in a friendly mining environment. However apparently the market seems to think it's not worth what GG are offering. Osisko's CEO naturally has the opposite view.
    Apr 10 05:40 PM | Likes Like |Link to Comment
  • ADRs A Better Hedge Than Gold? [View article]
    I beg to differ... I do know what an ounce of gold is. I can touch it, weigh it and look at it. It is exactly the same as an ounce of gold was in 1870. Can you explain what a dollar is?
    Apr 9 11:52 AM | 3 Likes Like |Link to Comment
  • ADRs A Better Hedge Than Gold? [View article]
    I know what an ounce of gold is. I can hold it in my hand. Before 1971 I also knew what a US dollar was, but what is it now? As all fiat currencies are quoted as a ratio derived from post 1971 US dollars, what are they now? Small paper rectangles with numbers and pictures of dead people printed on it, at almost zero cost to the producer of the note!
    Apr 8 06:54 PM | 3 Likes Like |Link to Comment
  • After The Sell-Off: A Bright Spot For Gold [View article]
    Traders were very slow to factor in any premium for the Ukraine problems and if you actually plot the price moves against the occurrence of actual events the correlation in timing is poor. This is very unlike the behaviour of gold 20+ years ago where price moves could easily be correlated directly to geopolitical news releases to the minute. Either gold is reacting less to geopolitical issues or western based traders no longer follow the world news instead preferring to "read the tea leaves" gleaned from the intentionally ambiguous pronouncements of sundry FED officials in order to direct their trades.
    Mar 23 12:53 PM | 5 Likes Like |Link to Comment
  • The Stars (And Russian Troops) Are Aligned For Higher Gold Prices [View article]
    GLD short interest has dropped more than half in the past two months. That could be from shorts covering on the market, but more likely the authorised participants have delivered gold to the trust to cover the short positions generated when they redeemed metal (from shorted stock) previously.
    Mar 16 04:25 PM | Likes Like |Link to Comment
  • The Message Of Gold Versus Inflation Indexed Bonds: A Conflict [View article]
    GLD is not necessarily a good proxy for actual gold metal. So far it has tracked the paper price of gold quite closely, but in fact it probably sets the paper price, so cause and effect may be reversed.

    The average investor cannot convert GLD stock into gold metal. That is reserved for a very small number of authorised participants (APs) who have been using the GLD metal as their private depository of actual metal, financed and maintained by the shareholders in GLD at zero cost to the APs. Those APs are the same firms who dominate COMEX and set the London prices twice daily.

    The system makes it extremely easy for them to utilise the gold stored on behalf of GLD shareholders and use it as a price control mechanism as well as to settle demands for actual metal from other markets and traders in real gold. GLD shares can easily be borrowed then sold or redeemed at any time for little cash outlay, providing a easy way for APs to get metal on credit at minimal cost.
    Mar 11 04:48 PM | 4 Likes Like |Link to Comment
  • The Gold And Silver Smack-Down Cometh [View article]
    It's always interesting to see people put considerable weight on the weekly COTs ignoring that they are compiled on Tuesday and not released until after the close on Friday. They are history not news!

    Like stock short selling data which is only compiled once a month and released two weeks after the compilation date, they are designed more to mislead than to inform the small traders, who cannot get better, more timely figures.

    Of course all of this data could be easily be accumulated and distributed in real time in modern computerised markets, but such transparency would assist the small trader and remove the advantage that withholding such data provides to the well connected professionals.
    Feb 23 05:13 PM | 1 Like Like |Link to Comment
  • Will The Gold And Silver Surge Continue? [View article]
    Interpreting movements of metal out of the ETFs like GLD may not be demonstrating a "lack of conviction" but more likely a shortage of physical metal available for quick delivery. The authorised participants can buy GLD shares at the "paper gold" price and then immediately redeem those shares for real metal. COMEX can't deliver any significant quantity of gold. The LBMA is leveraged 100:1 paper to physical and the ETFs are the only source of real metal available. The fact that short sellers can depress the share prices of GLD to ensure it remains below the equivalent spot physical price is a bonus to the APs. Until the long share holders in GLD start holding out for prices based on actual metal trading rather than the COMEX price set by trading phantom gold that is only deliverable in paper form, the APs will continue to raid the ETFs to meet their delivery obligations.
    Feb 16 08:07 PM | 6 Likes Like |Link to Comment
  • Gold- Buffett And Morgan Stanley Agree [View article]
    They can only do that because the market rules are openly flouted and the regulators turn a blind eye. If a similar value of contracts were dumped as market orders without any commodity backing, the big banks could drop any commodity or futures market price through the floor. That is not allowed for all other commodities and prosecution of the offender would quickly follow. In gold and silver markets the regulators tell us that they don't know who drops these bombs onto the market. That is just poppycock! So why are the precious metals open season when nothing else is?
    Feb 1 11:39 AM | 1 Like Like |Link to Comment
  • Gold- Buffett And Morgan Stanley Agree [View article]
    Plenty of comment here as to Mr. Buffett's widely repeated views on gold as an investment, but curiously Mr. Buffett is very tight lipped about what he is buying and selling as a general rule. The only way most of his market moving decisions are discovered is when he is forced to reveal them to comply with the stock market rules. So just why does he feel the need to regularly comment on something he is apparently not at all interested in? Talking his book, perhaps?
    Jan 31 05:29 PM | 1 Like Like |Link to Comment
  • Weekly COMEX Gold Inventories: The New Year Brings New All-Time Lows [View article]
    People have short memories... I recall when GLD was on the ascendency; there were many days where large tonnages were added without any movement in the spot gold price. Many said it must be a scam and they can't be finding these quantities of gold to add to their inventory without huge distortions in the spot market. And yet GLD physical stocks continued to rise relentlessly.

    Now, as that inventory is being pulled out of GLD, there seems to be nobody claiming that the "paper" that was added on the way up has somehow morphed into real metal while sitting in GLD's custodian's care. It's the real deal being redeemed and it's going to China and back to dress up the bare vaults of the CBs who leased it out in the first place.

    The truth is that GLD inventory never came from the open market and it was not bought for cash. It was leased by bullion banks from CBs and delivered to GLD's custodian. CBs emptied their vaults of their gold and the gold of others (think Germany) to make a quick return leasing it out to the BBs. As available gold stocks diminish some of those CBs are getting nervous. Germany wants their gold and so far they have been patient, but if more of the other countries start to want to see their gold supposedly stored for them in London and New York, then it could be a problem when they find that their physical gold has been replaced by a computer entry and a lease agreement. GLD was just one stop on the road for gold, leased from the CBs to the BBs who sold it to GLD for cash. Now the trade has reversed; the gold is being redeemed and shipped off to China to meet delivery obligations. The CBs and the BBs are still short, manipulating the paper gold price down to restrict their losses but apart from GLD there are few sellers willing to part with real metal at these prices. They have taken as much as they dare out of COMEX and still metal is short. Paper is cheap to produce and is as good as real metal for the price suppression game.. until it isn't and the longs start to demand the real thing, and the CBs call for the return of the gold they leased falls on deaf ears.
    Jan 12 06:13 PM | 2 Likes Like |Link to Comment
  • Gold Reserve Inc.: Do You Really Want To Gamble On An Arbitration Procedure? [View article]
    I have no idea where the $5 billion (ridiculous) figure, which the author repeats several times, originated. Certainly not from Gold Reserve which clearly states on its web site that the claim is for $2.1 billion, less than half the figure given by the author. I can only assume that he simply hasn't done his homework, and is confusing, or adding the Las Cristinas claim of Crystallex.

    With his comments based on such a wildly misleading figure, I wonder how much of the rest of the article is based on properly researched numbers and how much is based on poor research or mere guesses?

    The other major asset of Gold Reserve not even mentioned in this article is the detailed proprietary data and engineering studies of the Brisas ore body that Gold Reserve owns. The data which took close to $300 million to produce would take significant time and even more money to replace at todays costs.

    Working on the assumption that the Brisas deposit will be mined in the future, (according to Venezuelan government sources, the Chinese are ready to go) then it would make good economic sense to purchase that data from Gold Reserve and save years of work and hundreds of millions in drilling costs.
    Dec 28 03:04 PM | 8 Likes Like |Link to Comment
  • The Gold Floor Fallacy [View article]
    There is a cost to produce paper gold... Zero! Providing the sellers of that paper gold can evade their obligation to deliver on those "promises" then the paper supply can expand to infinity...
    China buys gold, real metal! USA trades paper with the word "GOLD" printed on it! And some think that's the same thing?

    GLD has had over 22 million shares sold short now for over a year. Those short sold shares remain in the stock market books even though the 70 tonnes of gold that used to back those shares has been redeemed by the APs and already shipped to China. The cash harvested by the stock short sellers has been reinvested in other shares.
    Dec 9 11:09 AM | 2 Likes Like |Link to Comment
  • Heterogeneous Mix Of Current Thought On The Price Of Gold [View article]
    Your comment "Why are there 80-90 tons of gold dumped on the market at odd hours with very, very light volume? Would a sophisticated trader or investor dump all that paper gold at one time?" is obvious, but so is the answer... There is no possible way that a "non-sophisticated" trader would have the credit or margin available to make a naked sale of that magnitude.

    So as those trades are not made by a "sophisticated trader or investor" and no "un-sophisticated trader" could ever convince his broker to place such a risky trade without billions to back it, WHO IS PLACING THOSE REGULAR ORDERS?
    Oct 22 11:54 AM | 4 Likes Like |Link to Comment
  • GLD Holdings Rise, Stay Above 1,000 Tonnes [View article]
    We know that almost 350 tonnes of gold with the GLD tag on it in the custodian's vault had the tag changed. But who is the new owner?
    I suspect that GLD's gold was sourced by bullion banks who leased it from central banks. Now that countries like Germany want their gold back, those leases have to be unwound so the metal can be returned.
    As much of the selling of GLD stock was at a premium to the paper spot price, was it "dumping" by investors or was it careful buying of GLD's physical gold by the bullion banks who had lease contracts expiring which the CBs refused to roll over?
    May 29 08:44 PM | 1 Like Like |Link to Comment