Gold: Casualty Of Currency Manipulations? [View article]
This is crazy. How can a country of 7 to 8 million (Switzerland) save the EUR which is the currency of 330 million? The CHF and JPY are clearly not safe havens, especially the JPY which will be devalued to roughly 0 value over time. Central Banks felt compelled to attack as they don't like competition. So, gold is down due to manipulation by the FED and some of their cronies.
Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing quite well and that Fed policy should hit "escape velocity" in 2014. Stocks give up their small gains, SPY now flat and the QQQs -0.4%, even with a 1.8% gain from Apple. [View news story]
I think that the Beranank knows very well that shit will hit the fan and is bailing out so somebody else could be blamed.
Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing quite well and that Fed policy should hit "escape velocity" in 2014. Stocks give up their small gains, SPY now flat and the QQQs -0.4%, even with a 1.8% gain from Apple. [View news story]
Old or not but they need to play that circus. This is whey Ben has such a lovely beard - he is the main clown in the show.
Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing quite well and that Fed policy should hit "escape velocity" in 2014. Stocks give up their small gains, SPY now flat and the QQQs -0.4%, even with a 1.8% gain from Apple. [View news story]
''escape velocity'' in 2014. Which way does he mean, up or down?
Caterpillar (CAT +1.2%) says its global machinery retail sales fell 9% in April, with a 20% drop in its Asia/Pacific segment and 18% drop in North America. Latin America was a bright spot in April, rising 28%. The surge in LatAm is encouraging, says Wells Fargo's Andrew Casey, especially when compared to last Aprils 12% increase. But, with demand in the other regions still contracting as heavily as they are, near-term hopes for CAT look dim regardless of how gangbusters the company is doing in South America. [View news story]
Hey, don't worry just buy stocks. If they come down 0.25%, the Plunge Protection Team will come out of their cave and save you at 3:30 pm.
Gold Supply And Demand Fundamentals: Q1 2013 [View article]
In March China also exported some gold and the net imports were 130 tons. Remember that China is also the bigger gold producer and not a single ounce of that leaves the country. This was in March, before prices came down further. I am waiting to see the April numbers but expect something huge. India probably bought huge amounts as well. The Indian government wants to put more restrictions on gold but in reality that won't work. Gold imports used to be illegal in India and the black market supplied exactly the same amount. It will be just like during the Prohibition, people actually drank more than before.
This just in. Precious metals (GLD +2.2%), (SLV +2.6%) are sharply higher on the session after a panicky Sunday evening plunge brought both to multi-year lows. Other than dollar weakness (UUP -0.5%) across the board, there's no news in particular - perhaps some satiated bears decided to cover and a trend took hold. [View news story]
The crash on Sunday night was caused by a large trade during illiquid market hours, traded by a high speed trader (most likely the FED or one of their cronies),
The Future For Gold Supply Looks Grim: An Opportunity For Gold Investors [View article]
Did you see that the South African unions are asking for up to 60% wage increases in the gold industry. Remember what happened with platinum? South Africa is still a significant producer at ~ 170 tons per year, 5th biggest in the world. Does mining there make any sense as the companies are totally between a rock and a hard place and will not make any money ever. There is talk there about increasing royalties and even mine confiscation. You can bet this will happen as well.
Gold Supply And Demand Fundamentals: Q1 2013 [View article]
Early in Asia, silver plunged 10% ... pure manipulation as somebody sold huge size during illiquid hours ... the usual strategy of people that don't fear the law and use such tricks repeatedly to manipulate the markets. Nobody needs to worry that such blatant and illegal manipulation will be investigated. It won't happen. They are going to kill the mining businesses for sure as costs for many of them are above the spot price of gold and silver now. Costs of mining keep going up. The South African unions are now asking for 60% wage increase for gold workers! There will be strikes and supply will drop again. Over time, genuine traders will exit the Comex as it is a rigged casino. How is the FED going to manipulate the markets when the paper trading disappears due to lack of demand for the paper products?
"Do you really think risk-averse central bankers are going to try and catch the knife," asks Credit Suisse commodity research chief Ric Deverell about gold. "No" is his answer as this crowd only buys when the price is headed higher. Of reports of heavy physical buying, he's unimpressed, noting investment demand (ETFs) is the gorilla in the gold market. The metal's (GLD -1.6%) within a few dollars of taking out the 26-month low hit in April. [View news story]
In fact ETF's are small. It is the Chinese, Indians, Russians and other like them that are the big bears in the gold market. ETF's are very small.
The Future For Gold Supply Looks Grim: An Opportunity For Gold Investors [View article]
This is interesting and the articles on the cost of gold and silver mining are great. I follow them closely and the methodology makes a lot of sense. It is my view that the recent gold prices volatility (on the downside) was and continues to be organized by the FED. There are good reason why the FED would do that. The FED is the most profitable business in the world. In 2013 they will print ~ $1 trillion and that is all profit as their costs are zero. They can do that because they have monopoly over printing the global reserve currency. As every good monopolist knows, it is important to damage any potential competition as much as possible which is why the FED is attacking gold. I also notice that gold often gets hit around the time Bernanke speaks and I think that he is personally involved in that or whoever hits gold wouldn't do it at that time. On the day when gold collapsed in April somebody hit the futures market with an order to sell the equivalent of more than 400 tons of gold. No private entity can sell that type of size and even a public entity wouldn't trade in that way if they want to get the best price. For example, in 2009 the IMF sold 200 tons of gold to India but they negotiated the sale and didn't move the market at all. It is clear to me that whoever did the selling of the 400 tons of paper gold had no intention of getting a good price but wanted to move the market. The fact that the CFTC doesn't even look into something that looks like a blatant manipulation also tells me that the FED was involved. Whether the FED makes or loses money on such transaction is irrelevant and they don't care. The FED ''produces'' $1 trillion per year and they can spend say $20 billion on interventions, if they want to. Such interventions are done to crush any potential competition and are used to advertize what the FED produces (dollars) with the added benefit of pushing people into equities and bonds. So, they would definitely do it. The FED doesn't talk about god much but in 1993 Greenspan said ''where central banks stand ready to lease gold in increasing quantities should the price rise.". Also, former FED boss and Obama adviser Volcker said in 1973 "That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.". So, they are trying not to repeat the same mistake. If only the West was involved, the FED would have a chance of achieving something but with the biggest buyers of gold being the Asians, the FED has no chance of succeeding medium term. The Chinese and Indians have seen that movie a lot of times and they understand. Gold buying there will only go up in size. The current low prices will cause the miners to rethink their strategy and cut exploration and other costs. The resulting supply shock will take time to materialize but can have a significant effect.
Japan will definitely experience a huge crisis as the value of the yen collapses. Of course, JGB's will get hit (even in jpy terms) as well. My thinking is that the collapse of their economy is going to happen in 2 to 5 years. This kind of thing depends on sentiment and to what extent the populations is not proactive. As the pile of newly printed yen grows, the sentiment will get worse and worse but still, who knows when it will reach a tipping point. My guess is towards the lower bound of my 2 to 5 year range. I think that their financial collapse is inevitable.
Gold: Casualty Of Currency Manipulations? [View article]
Chicago Fed: Manufacturing Is Softening [View article]
Gold Supply And Demand Fundamentals: Q1 2013 [View article]
Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing quite well and that Fed policy should hit "escape velocity" in 2014. Stocks give up their small gains, SPY now flat and the QQQs -0.4%, even with a 1.8% gain from Apple. [View news story]
Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing quite well and that Fed policy should hit "escape velocity" in 2014. Stocks give up their small gains, SPY now flat and the QQQs -0.4%, even with a 1.8% gain from Apple. [View news story]
Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing quite well and that Fed policy should hit "escape velocity" in 2014. Stocks give up their small gains, SPY now flat and the QQQs -0.4%, even with a 1.8% gain from Apple. [View news story]
Caterpillar (CAT +1.2%) says its global machinery retail sales fell 9% in April, with a 20% drop in its Asia/Pacific segment and 18% drop in North America. Latin America was a bright spot in April, rising 28%. The surge in LatAm is encouraging, says Wells Fargo's Andrew Casey, especially when compared to last Aprils 12% increase. But, with demand in the other regions still contracting as heavily as they are, near-term hopes for CAT look dim regardless of how gangbusters the company is doing in South America. [View news story]
Gold Supply And Demand Fundamentals: Q1 2013 [View article]
This just in. Precious metals (GLD +2.2%), (SLV +2.6%) are sharply higher on the session after a panicky Sunday evening plunge brought both to multi-year lows. Other than dollar weakness (UUP -0.5%) across the board, there's no news in particular - perhaps some satiated bears decided to cover and a trend took hold. [View news story]
The Future For Gold Supply Looks Grim: An Opportunity For Gold Investors [View article]
Gold Supply And Demand Fundamentals: Q1 2013 [View article]
They are going to kill the mining businesses for sure as costs for many of them are above the spot price of gold and silver now. Costs of mining keep going up. The South African unions are now asking for 60% wage increase for gold workers! There will be strikes and supply will drop again.
Over time, genuine traders will exit the Comex as it is a rigged casino. How is the FED going to manipulate the markets when the paper trading disappears due to lack of demand for the paper products?
"Do you really think risk-averse central bankers are going to try and catch the knife," asks Credit Suisse commodity research chief Ric Deverell about gold. "No" is his answer as this crowd only buys when the price is headed higher. Of reports of heavy physical buying, he's unimpressed, noting investment demand (ETFs) is the gorilla in the gold market. The metal's (GLD -1.6%) within a few dollars of taking out the 26-month low hit in April. [View news story]
The Future For Gold Supply Looks Grim: An Opportunity For Gold Investors [View article]
It is my view that the recent gold prices volatility (on the downside) was and continues to be organized by the FED. There are good reason why the FED would do that. The FED is the most profitable business in the world. In 2013 they will print ~ $1 trillion and that is all profit as their costs are zero. They can do that because they have monopoly over printing the global reserve currency. As every good monopolist knows, it is important to damage any potential competition as much as possible which is why the FED is attacking gold. I also notice that gold often gets hit around the time Bernanke speaks and I think that he is personally involved in that or whoever hits gold wouldn't do it at that time. On the day when gold collapsed in April somebody hit the futures market with an order to sell the equivalent of more than 400 tons of gold. No private entity can sell that type of size and even a public entity wouldn't trade in that way if they want to get the best price. For example, in 2009 the IMF sold 200 tons of gold to India but they negotiated the sale and didn't move the market at all. It is clear to me that whoever did the selling of the 400 tons of paper gold had no intention of getting a good price but wanted to move the market. The fact that the CFTC doesn't even look into something that looks like a blatant manipulation also tells me that the FED was involved.
Whether the FED makes or loses money on such transaction is irrelevant and they don't care. The FED ''produces'' $1 trillion per year and they can spend say $20 billion on interventions, if they want to. Such interventions are done to crush any potential competition and are used to advertize what the FED produces (dollars) with the added benefit of pushing people into equities and bonds. So, they would definitely do it.
The FED doesn't talk about god much but in 1993 Greenspan said ''where central banks stand ready to lease gold in increasing quantities should the price rise.". Also, former FED boss and Obama adviser Volcker said in 1973 "That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.". So, they are trying not to repeat the same mistake.
If only the West was involved, the FED would have a chance of achieving something but with the biggest buyers of gold being the Asians, the FED has no chance of succeeding medium term. The Chinese and Indians have seen that movie a lot of times and they understand. Gold buying there will only go up in size.
The current low prices will cause the miners to rethink their strategy and cut exploration and other costs. The resulting supply shock will take time to materialize but can have a significant effect.
Japan's Excessive Money Printing Self Destructive [View article]
Don't Panic Over The Silver Sell-Off [View article]