Jul 02

H/t reader squodgy:

“Interesting that the actual paper Gold &Silver is being suppressed while it looks like hard metal prices are hardened slightly higher.

This renders the mining industry as marginal at best and a total rock bottom liability at worst, pointing to cheap sell offs for the benefit of the moneyed few who can then mothball them causing the price hike they can benefit from.”

With the price for an ounce of silver being below the cost of production, how can silver not be called a bargain?


Change in gold holding

Gold & Silver Smashdown – Mining Industry Collapse (Level9News, April 29, 2015):

As we’ve seen the price of gold and silver smashed down in order to drive people out of their physical and paper holdings, we are seeing a buying frenzy towards the acquisitions of physical gold and silver, not only by private investors and individuals, but a massive push towards acquisition by leading BRICS nations while simultaneously dumping US Treasuries. This is creating, or at least we are being told, a physical shortage of these metals in the market.

There appears to be an orchestrated attempt to relieve private holders of their gold and silver physical and paper assets at the focal point of the power centralization structure to consolidate these holdings in the hands of the few elite who are manipulating the markets. Continue reading »

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Jun 18

Ignore-Sinking

Financial System “Will Implode” … “Hold Precious Metals” – Faber (GoldCore, June 15, 2015):

– “Whole Financial System Will One Day Implode” – Marc Faber
– “I feel like I’m on the Titanic …”
– Arguing over the best assets akin to re-arranging deck chairs on Titanic
– Investors need escape plan and “safety boat”
– Forget Fed rate hike, Fed QE 4 is coming
– Diversify and hold “commodities, precious metals”

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Jun 17

From the article:

If the federal government were to try and do something like [confiscation], the reality is: There is a motto in the office of almost every state legislator in Texas, and it’s a flag that we have [from the Texas Revolution], it’s below a cannon and what the motto says is, ‘Come and Take it.’


 

Come And Take It

Texas Gold Repatriation Bill Has One Message To Feds: “Come And Take It” (ZeroHedge, June 17, 2015):

As the mainstream media begins to come to terms with just what Texas’ decision to repatriate its gold from the Federal Government in its own Gold Depository, the details of Republican State Rep. Giovanni Capriglione’s bill protecting gold from confiscation become clear…

In an interview with The Epoch Times, Caprigilione explains why he pushed the bill and its far-reaching implications…

Epoch Times: What did you do to make the bill pass? Continue reading »

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Jun 13

Gold-101


Writing’s On The Wall: Texas Pulls $1 Billion In Gold From NY Fed, Makes It “Non-Confiscatable” (ZeroHedge, June 13, 2015):

The lack of faith in central bank trustworthiness is spreading. First Germany, then Holland, and Austria, and now – as we noted was possible previouslyTexas has enacted a Bill to repatriate $1 billion of gold from The NY Fed’s vaults to a newly established state gold bullion depository…”People have this image of Texas as big and powerful … so for a lot of people, this is exactly where they would want to go with their gold,” and the Bill includes a section to prevent forced seizure from the Federal Government. Continue reading »

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Jun 11

Indian Silver Demand Explodes to US Silver Owners’ Delight (GoldCore, June 11, 2015):

– India may absorb as much as one third of total global silver production this year
– Strong demand for silver steadily increasing year by year
– Indian citizens and solar industry take advantage of current low prices in silver
– U.S. silver imports still enormous despite ostensible decline in demand

Indian-Silver-Imports

The first four months of 2015 saw India import possibly as much as 3,000 tonnes of silver bullion. If the momentum is maintained India is on track to import a staggering 9,000 tonnes over the course of 2015.

Continue reading »

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Jun 03

“Bernanke & Greenspan Have Destroyed America” Schiff & Maloney Warn “People Don’t Realize What Is Coming” (ZeroHedge, June 3, 2015):

Ali and Frazier, Laurel and Hardy, Mayweather and Pacquiao, Liesman and Santelli, and now Schiff and Maloney. Peter and Mike join clash of the titan-like to discuss their investment strategies and expose the charts the government doesn’t want you to seeas “people like Bernanke are taken seriously still and the people that did predict [the crisis] are dismissed as lunatics half the time.” The wide-reaching conversation covers everything from gold and stocks to The Fed and The Dollar – Bernanke “took the coward’s way out because all he did was exacerbate the problems to postpone the day of reckoning.” The air is coming out of the bubble, they warn, “Bernanke and Greenspan have absolutely destroyed America. People don’t realize what is coming…”

Full interview here:

Full transcript below:

Continue reading »

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Jun 01

Gold-bars-111

Kyle Bass Was Right: Texas To Create Own Bullion Depository, Repatriate $1 Billion Of Gold (ZeroHedge, June 1, 2015):

Most investors have heard Kyle Bass’ rather eloquent phrase, “buying gold is just buying a put against the idiocy of the political cycle. It’s that simple.” However, what few may remember was his warnings in 2011, suggesting the University of Texas Investment Management Co. take delivery of its gold – as opposed to trusting it in the ‘safe’ hands of COMEX massively levered paper warehouse. Now, as The Star Telegram reports, Texas is going one step further with State Rep. Giovanni Capriglione asking the Legislature to create a Texas Bullion Depository, where Texas could store its gold. The goal is to create a secure facility that would allow the state to bring home more than $1 billion in gold bars that are owned by UTIMCO and are now housed at HSBC in New York. Continue reading »

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May 28

–  It’s Official: Austria Repatriates Gold, Confirms Loss Of Faith In Bank Of England (ZeroHedge, May 28, 2015):

Earlier today the Austrian Central Bank confirmed the Kronen-Zeitung report, and said that by the year 2020, it would hold 50%, or 140 tons, of its gold domestically, up from 17% currently. This means that Austria will withdraw some 140 tons of gold from the BOE which holds 80% of Austria’s gold currently and send 92.4 tons back home to Vienna with another 47.6 tons being sent to Switzerland. Which is also the biggest news: Austria is explicitly demonstrating a lack of confidence in the “pro-western” system of which the Bank of England is a critical cog, and instead opting for “neutral” Switzerland, which will hold nearly 50 tons of the gold formerly located at the Bank of England.

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May 27

putin-gold

Gold Bullion Is “100% Guarantee from Legal and Political Risks” – Russia (Goldcore, May 27, 2015):

– Gold is a “100% guarantee from legal and political risks”
– Russia’s central bank buys another 300,000 ounces in April
– Russia views its overseas assets as vulnerable
– ‘De-dollarisation’ continues across Asia
– Gold offers protection from growing risks today

Russia’s central bank once again increased its gold holdings substantially in April. They added another 300,000 ounces to their existing stockpile bringing the total up to 40.1 million ounces (see chart below). Continue reading »

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May 27

Oesterrreichische Nationalbank

The End Game Continues: Austria Repatriates Gold (ZeroHedge, May 27, 2015):

After Germany and the Netherlands decided to repatriate a substantial amount of gold from vaults abroad to the vaults in respectively Amsterdam and Frankfurt, now Austria is joining the ‘bring our gold home’ movement.

After increasing pressure from the Austrian people on the government and the central bank to increase the ratio of the gold effectively held in the Austrian Central Bank in Vienna, the central bank has finally made the decision to effectively do so. Less than 20% of Austria’s (relatively) sizeable gold reserves were held in its own vaults with the remainder being stored in Switzerland and London. Austria will now remove 63% of the gold from London and transport it to both Switzerland and Austria. This will be an interesting test case to see how long it will take the Bank of England to ship the 140 tonnes of gold (4.5 million ounces) to Vienna, and we dare to bet this will either take much longer than anticipated, or we’ll suddenly see another gold withdrawal from the Federal Reserve which will very likely be the magical 125-150 tonnes number. Continue reading »

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May 24

american-eagle
Silver-American-Eagle american-eagleamerican-eagle

–  Traders Are Buying Gold & Silver At Fastest Pace In Over A Decade (ZeroHedge, May 24, 2015):

The last time large speculators were as aggressively buying silver as last week was September 1997. The net long non-commercial positioning in Silver futures, according to the CFTC rose almost 22,000 contracts last week to a 3-month high (which is closing in on the ‘longest’ since 2005). Gold, not be out-precious’d also saw major buying. Net speculative longs in gold added over 45,000 contracts – the most since July 2005 – lifting net long positions to their highest in 3 months. Perhaps, just perhaps, as Alhambra’s Jeffrey Snider notes, this is due to Yellen putting the ‘dollar’ back on suicide watch.

 …

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May 24

China Establishes World’s Largest Physical Gold Fund (ZeroHedge, May 24, 2015):

Overnight Xinhua also reported that a gold sector fund involving countries along the ancient Silk Road has been set up in northwest China’s Xi’an City during an ongoing forum on investment and trade this weekend. (read more about the “New Silk Road” which could change global economics forever here). The fund, led by Shanghai Gold Exchange (SGE), is expected to raise an estimated 100 billion yuan (16.1 billion U.S. Dollars) in three phases. The amount of capital allocated to nothing but physical gold purchases (without plans for financial paper intermediation a la western ETFs) will be the largest in the world.

 …

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May 18

Gold Hits 3-Month Highs Amid “Frenetic Liquidity” (ZeroHedge, May 18, 2015):

Gold topped $1230 this morning – breaking to 3-month highs and up over 4% year-to-date – up 5 days in a row for the best run in 4 months. The surge comes causally or correlatedly coincidental with China’s explicit shift into extraordinary measures (LTROs) but, as The FT reports, market participants are concerned that algo-based funds have created a “frenetic liquidity” environment as everyone from real money to central banks “aren’t trading the gold market the way they used to.”

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May 15

Gold Breaks Key Technical To 3-Month High, Silver Surging  (ZeroHedge, May 14, 2015):

The last 3 days have seen precious metals surging. Silver is up over 7% – its biggest such rise since Aug 2013, and Gold up 3% – its largest in 4 months. Volume is heavy also. A specific catalyst is unclear but USD weakness is being cited, weak macro data suggesting further easing, China demand ahead of SDR-backing, and finally the realization that the Chinese shift to unconventional monetary policy (LTROs) is a slippery slope to full-blown QE from which few (if any) have ever escaped.

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May 15

–  Ray Dalio: “If You Don’t Own Gold, You Either Don’t Know History Or Economics” (ZeroHedge, May 14, 2015):

Bridgewater’s Ray Dalio explains in under 120 seconds why everyone should allocate some of their portfolio to gold

“If you dont own gold…there is no sensible reason other than you dont know history or you dont know the economics of it…”

Of course, few ‘status quo’ believers will pay heed to the $150 billion AUM fund manager, despite his imploring that to be successful, “Think Independently, Stay Humble”

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May 09

gold-confiscation-roosevelt-1933

Russell Napier Explains What’s In Store For Gold If Cash Is Outlawed (ZeroHedge, May 9, 2015):

Why we didn’t have negative nominal yields in the Depression and the end of QE

Oh the time will come up
When the winds will stop
And the breeze will cease to be breathin’,
Like the stillness in the wind
’Fore the hurricane begins —
The hour when the ship comes in.

And the words that are used
For to get the ship confused
Will not be understood as they’re spoken,
For the chains of the sea
Will have busted in the night
And will be buried at the bottom of the ocean.

–  When The Ship Comes In (Bob Dylan 1963)

The Napier Euro High Yield Capital Guarantee Fund (discussed in the November 12th edition of The Solid Ground) is almost ready for launch. It offers a unique combination of attributes to investors. It has significantly better risk/reward characteristics than both deposits and government debt securities. In short, it is a room full of Euro banknotes. Continue reading »

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May 07

Gold-bars-111

China To Establish Yuan-Denominated Gold Fix In Bid To Upend London Benchmark (ZeroHedge, May 6, 2015):

A long time ago, in a financial galaxy far, far away, a “fringe” blog raised the topic of gold market manipulation during the London AM fix. Several years later (which, incidentally, is about average in terms of the lag time between when something is actually going on and when the mainstream financial media finally figures it out and reports on it), it was revealed that in fact, shenanigans were likely afoot and indeed, regulators are still trying to sort out what happened.

Via WSJ earlier this year: Continue reading »

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May 06

7 Person CFTC Team Charges Gold Manipulators Identified First On Zero Hedge With Gold And Silver Spoofing (ZeroHedge, May 6, 2015):

The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a civil enforcement action in the U.S. District Court for the Southern District of New York against Heet Khara and Nasim Salim, residents of the United Arab Emirates.  According to the CFTC’s Complaint, Defendants engaged in unlawful disruptive trading practices known as “spoofing” in the gold and silver futures markets by placing bids and offers with the intent to cancel them before execution.

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May 06


May 5, 2015

Related info:

US Trade Deficit Soars To Worst Since Financial Crisis; Will Push Q1 GDP Negative

US Economy Grinds To A Halt, Again: Q1 GDP Tumbles Below Expectations, Rises Paltry 0.2%:

Without this epic stockpiling of non-farm inventory which will have to be liquidated at some point (and at a very low price) Q1 GDP would have been -2.5%.

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May 05

Gold Withdrawals From NY Fed Vault Refuse To Stop: 200 Tons Of Gold Repatriated In Past Year (ZeroHedge, May 5, 2015):

One month ago, when we commented on the latest monthly withdrawal from the gold vault lying on New York’s bedrock some 90 feet below the NY Fed building, which then saw another 10 tons quietly repatriated by unnamed foreign central bank(s) bringing the total held on behalf of foreign governments to below 6,000 tons for the first time in the 21st century, we made an observation:

… it means that all of the 207 tons in Dutch and German withdrawals are now accounted for with a matched and offsetting “departure” at the Fed. Which is why the next monthly update of the Fed’s earmarked gold will be especially interesting: if March data shows that the withdrawals continue, it will mean that either Germany, or some other sovereign, has continued to redeem their gold which for some reason they no longer trust is safe lying nearly 100 feet below street level on the Manhattan bedrock. Continue reading »

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