Nearly four months ago on June 2nd, something very unusual happened in Edmonton, Alberta, Canada.
The price of propane actually became negative, hitting an unbelievable -0.625 cents per gallon.
It’s hard to believe that the price of a productive commodity could become so beat down by the market that producers would practically have to pay you to take it off their hands.
Now that’s cheap. And completely nuts. Continue reading »
Unlike previous gold probe cases, this one will have major consequences. How do we know? Because just like in LIBOR-gate, just like in FX-gate, it is the biggest rat of all, Swiss megabank UBS, that is about to turn on its former criminal peers. As Bloomberg reported earlier “UBS was granted conditional leniency in Swiss antitrust probe of possible manipulation of precious metal prices.” Why would UBS do this? The same reason UBS did so on at least on two prior occasions: the regulators have definitive proof it is involved, and gave it the option to turn evidence and to rat out its cartel peers, or face even more massive financial penalties. UBS, as usual, choice the former.
“A joke” and “far from impressive”, both descriptions give you a sense of the frustration being felt by Saxo Bank’s Chief Economist Steen Jakobsen who analyses the decision not to raise rates in this brief clip. The Fed “missed opportunity to raise rates for first time since 2006” according to Steen who has been consistently arguing against what he calls the Fed’s “pretend-and-extend” culture. Volatility and uncertainty will remain high and there’s now little chance of a rate rise this year suggests Steen (expecting a big rally in gold), given that EM economies and China are unlikely to emerge from the doldrums in the near-term.
– Bank Caught Using Fake Gold As Reserve Capital In Russia (ZeroHedge, Sep 12, 2015):
Over the past several years, incidents involving fake gold (usually in the form of gold-plated tungsten) have emerged every so often, usually involving Manhattan’s jewerly district, some of Europe’s bigger gold foundries, or the occasional billion dealer. But never was fake gold actually discovered in the form monetary gold, held by a bank as reserve capital and designed to fool bank regulators of a bank’s true financial state. This changed on Friday when Russia’s “Admiralty” Bank, which had its banking license revoked last week by Russia’s central bank, was reportedly using gold-plated metal as part of its “gold reserves.”
According to Russia’s Banki.ru, as part of a probe in the Admiralty bank, the central bank regulator questioned the existence of the bank’s reported quantity of precious metals held in reserve. Citing a source, Banki.ru notes that as part of its probe, instead of gold, the “regulator found gold-plated metal.” Continue reading »
– Are Big Banks Using Derivatives To Suppress Bullion Prices? (The Real Agenda News, Sep 9, 2015):
We have explained on a number of occasions how the Federal Reserves’ agents, the bullion banks (principally JPMorganChase, HSBC, and Scotia) sell uncovered shorts (“naked shorts”) on the Comex (gold futures market) in order to drive down an otherwise rising price of gold.
By dumping so many uncovered short contracts into the futures market, an artificial increase in “paper gold” is created, and this increase in supply drives down the price. Continue reading »
Wow! You can’t make this scam up if you wanted to.
From the article:
“the plan will allow Indians to deposit their jewelry or bars with banks and earn interest, while the banks will be free to sell the gold to jewelers, thereby boosting supply.”
And again: Only physical(!) gold (and silver) stored outside the banking system is real, everything else is an illusion.
– Is This The Start Of India’s Gold Confiscation (ZeroHedge, Sep 10, 2015):
On April 5, 1933, FDR signed Executive order 6102 which made illegal “the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States” in the process criminalizing the possession of monetary gold by any individual or corporation.
This was de facto gold confiscation; De jure it wasn’t, because as compensation for the relinquished gold, Americans would receive 20.67 in freshly printed US dollars for every troy ounce. Anybody who objected faced a fine of $10,000 (just under $200,000 in inflation-adjusted dollars) and up to 10 years in prison.
Once the government was confident it has confiscated enough gold, it turned around and raised the official price of a gold ounce to $35 (about $600 in today’s dollars) devaluing the US Dollar by 40% overnight at a time when currencies were still backed by hard assets. Continue reading »
– Something Just Snapped At The Comex (Updated) (ZeroHedge, Sep 9, 2015):
As of Friday the comex gold “coverage” or amount of paper claims on every ounce of physical, was literally off the chart, soaring to a mindblowing 207 ounces of paper gold claims for every ounce of deliverable gold. This also means that the dilution ratio between physical gold and paper gold has hit a new all-time low of just 0.48%!
– “It’s A Tipping Point” Marc Faber Warns “There Are No Safe Assets Anymore” (ZeroHedge, Sept 2, 2015):
Markets have “reached some kind of a tipping point,” warns Marc Faber in this brief Bloomberg TV interview. Simply put, he explains, “because of modern central banking and repeated interventions with monetary policy, in other words, with QE, all around the world by central banks – there is no safe asset anymore.” The purchasing power of money is going down, and Faber “would rather focus on precious metals because they do not depend on the industrial demand as much as base metals or industrial commodities,” as it’s now “obvious that the Chinese economy is growing at nowhere near what the Ministry of Truth is publishing.”
Faber explains more… “I have to laugh when someone like you tries to lecture me what creates prosperity”
Some key exceprts… Continue reading »
– Austrian Economics Is Now Equivalent To Terrorism Thanks To Latest Islamic State “Gold Standard” Propaganda Clip (ZeroHedge, Aug 30, 2015):
What better way to mute demands for a return to sound money and the gold standard, than by making them equivalent to jihadist terrorism? Why, there are none, which is why some were thoroughly amused to see that yesterday the Islamic State’s so called media center, the al Hayat, released a video whose production qualities are nothing short of Hollywood (or San Fernando valley at worst), in which the latest and greatest “jihadist terrorist group” that was a byproduct of US intervention in the Middle East, announces it is preparing to take on the Fed itself with, drumroll, “the return of the gold dinar.”
As Bloomberg reminds us, the Islamic State’s Shura Council last year tasked its Beit al Mal, or treasury, with minting the coins, which come in several denominations made of gold, silver and copper.
– Nazis’ Gold Train Is Said to Have Been Found in Poland (RINF, Aug 27, 2015):
On 27 August, Polish Radio announced that two people have presented evidence that they have discovered Nazi Germany’s legendary “Gold Train,” containing art and that’s especially “laden with precious metals,” and that the pair are demanding a 10% cut of its value, for finding this nearly 200-yard-long train, in a hidden mountain tunnel in the Polish town of Walzbrych, formerly the German town of Waldenburg. Nazis had constructed the tunnel in 1943, to hide valuables from Soviet forces, in the event that Germany might lose the war. Continue reading »
– China chooses her weapons (Gold Money Aug 20, 2015):
China’s recent mini-devaluations had less to do with her mounting economic challenges, and more to do with a statement from the IMF on 4 August, that it was proposing to defer the decision to include the yuan in the SDR until next October
The IMF’s excuse was to avoid changes at the calendar year-end and to allow users of the SDR time to “adjust to a potential changed basket composition”. It was a poor explanation that was hardly credible, given that SDR users have already had five years to prepare; but the decision confirming the delay was finally released by the IMF in a statement on Wednesday 19th. Continue reading »
– Gold Surges Above Key Technical Level, Silver Regains Last Week’s Losses (ZeroHedge, Aug 20, 2015):
Gold has filled the gap from the mid-July China crash and broken above its 50-day moving average for the first time since June. Silver is surging once again this morning reoundtripping to last week’s pre-flush highs…as The US Dollar limps lower.
Gold breaks above the 50DMA for first time since June…
All the charts you need here:
– Dow-Stockalypse-Wow: Bonds & Bullion Soar As Equities Crash (ZeroHedge, Aug 20, 2015)
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– Dow Dumps 1200 Points From Record Highs To 7-Month Lows – Unchanged Since The End Of QE3 (ZeroHedge, Aug 20, 2015)
– US Dollar Flash Crash Sparks Precious Metals Surge (ZeroHedge, Aug 19, 2015):
After yesterday’s slamming efforts, precious metals are well bid this morning following the USD flash crash this morning. Silver has regained yesterday’s losses and gold is hitting one month highs…
– Billionaire Stanley Drucknemiller Loads Up On Gold, Makes It His Largest Position For First Time Ever (ZeroHedge, Aug 16, 2015):
Following Friday’s filing by the Duquesne Family Office, we learned that as of the end of Q2, the largest position for Stanley Druckenmiller was none other than gold, following the purchase of 2.9 million shares of the GLD ETF shares. In other words, as of this moment, gold amount to over 20% of Druckenmiller’s total holdings.
– Gold Jumps After China Reveals It Bought Another 19 Tons In July (ZeroHedge Aug 14, 2015):
Putting what China has just done in very simple context: China announces an increase in its gold holdings of over 58% (June and July)… and then it devalues its currency by nearly 5% in one week.
Even the most brainwashed Keynesians should be able to figure out what is going on by now.
– Gold & Silver Surge As Dollar Dumps (ZeroHedge, Aug 12, 2015):
Just 3 weeks after the world could not purge itself fast enough of ‘pet rocks’, Gold is pushing to one-month highs this morning (at $1120) and Silver just broke a key technical level at its 50-day moving average as USD weakness and global turmoil have seen Precious metals gain for the last few days…
July 17: China increases official gold holdings by 57% August 11: China devalues Yuan
— zerohedge (@zerohedge) August 11, 2015
“The future is unknown and we are not dealing with markets that are free markets anymore…now we have government interventions everywhere. [But] in the last say twelve months, I have observed an increasing number of academics who are questioning monetary policies. That’s why I think they will take the gold away and go back to some gold standard by revaluing the gold say from now $1000/oz to say $10,000 dollars. An individual should definitely own some physical gold. The bigger question is where should he store it? because… the failure of monetary policies will not be admitted by the professors that are at central banks, they will then go and blame someone else for it and then an easy target would be to blame it on people that own physical gold because – they can argue – well these are the ones that do take money out of circulation and then the velocity of money goes down – we have to take it away from them… That has happened in 1933 in the US.”
Dr Marc Faber was born in Zurich, Switzerland. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Dr Faber publishes a widely read monthly investment newsletter “The Gloom Boom & Doom Report” report which highlights unusual investment opportunities, and is the author of several books including “ TOMORROW’S GOLD – Asia’s Age of Discovery”.
– “They’ll Blame Physical Gold Holders For The Failure Of Monetary Policies” Marc Faber Explains Everything (Marcopolis, Aug 7, 2015):
Interview with Marc Faber, Editor and Publisher of “The Gloom, Boom & Doom Report’”
In this exclusive interview with Marcopolis.net Marc Faber covers it all: from commodities and China to the outlook on inflation, the Euro and gold. According to him the global economy is not healing. To the contrary, we might find ourselves back into recession within six months or a year. In that case he expects more money printing by central banks, which eventually could lead to high inflation rates and renewed strength in commodity prices.
On the bright side, he sees great economic potential in Vietnam. Also, the Iraqi stock market has good potential now that a deal with Iran has been reached. While mining stocks are extremely depressed we might see defaults before any meaningful recovery.
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In your 2002 book “Tomorrow’s gold” you identified two major investment themes: emerging markets along with commodities. That was a great call. As for commodities, they had a great run up until 2008. Then they crashed sharply along with everything else just to recover strongly into 2011. Since then they have acted weakly, and recently commodities even reached a 13-years low. Is this the end of the commodities-super-cycle, as some have claimed, or is it more like a correction? Continue reading »
Rick devotes the full one-hour to delivering a blockbuster interview with financial analyst Jim Willie, publisher of the Hat Trick Letter. Jim discusses the rapid drying of the Treasury bond liquidity market, the introduction of a new U.S. currency very soon, the BRICS challenge to the London-New York financial power base, criminal activity in financial markets, the global re-set of the financial system, a gold-backed global reserve currency, and many other hot-button topics.
– China’s Secret Gold Hoarding Strategy (Money metals, Aug 6, 2015):
China’s recent stock market gyrations have some analysts now calling China the biggest bubble in history. But those who write off China because of market volatility are missing a more important long-term trend of Chinese geopolitical and monetary ascendancy. That trend shows no signs of abating.
China’s leaders have a clever strategy, and Western financial powers may someday wake up in shock when they realize what has occurred.
(No, they won’t. This is all part of a plan executed by the Illuminati. There are NO such surprises in their world! This is all planned, incl. the coming greatest financial collapse in world history. A lot of people will wake up in shock one day and TPTB will have intentionally caused that shock. Our leaders are all puppets. All of them!)
It’s true that the Chinese government has helped fuel artificial demand for property and equities. China skeptics who argue that these artificially inflated markets will crash to much lower levels could well prove to be correct. Some China doubters also argue that a downturn in China’s economy will put downward pressure on commodity prices. Continue reading »
– JPMorgan Helps Comex Avoid Gold Depletion, Boosts Registered Gold By 78% Overnight (ZeroHedge, Aug 6, 2015):
We were less than surprised to see that just 2 days after our report, the Comex once again succeeded in sweeping default fears under the rug by boosting its eligible gold by a whopping 78% overnight, from 362K ounces to 643K, thereby pushing deliverable gold from its all time lows. However, this was not achieved with an infusion of actual new gold into the Comex, but thanks to JPM reclassifying 276K ounces of gold from the Eligible into the Registered category, even as actual eligible gold continues being withdrawn from the Comex.
– Why the Government Hates Gold (Bonner & Partners, Aug 4, 2015):
Mr. Market Gets Even
Yes, prices are being discovered again… by free declaration of buyers and sellers.
Owners of Greek stocks are discovering that their equity stakes aren’t as valuable as they believed.
But for every seller there is a buyer… Continue reading »
– Some clear thinking about the price of gold. (Sovereign Man, August 4, 2015):
On April 2, 2001, the price of gold closed the market trading session at $255.30.
And that was the lowest price that gold has seen ever since.
In US dollar terms, gold closed the 2001 calendar year higher than it did in 2000. Then it did the same thing again in 2002. And again in 2003. Continue reading »