Jun 04

From the article:

“So if tens of thousands of tons of copper and aluminum are suddenly “missing”, one can assuredly say: “at least the gold is still there.” Right?


- China Scrambling After “Discovering” Thousands Of Tons Of Rehypothecated Copper, Aluminum Missing (ZeroHedge, May 4, 2014):

“Banks are worried about their exposure,” warns one warehousing source, “there is a scramble for people to head down there at the minute and make sure that their metal that they think is covered by a warehouse receipt actually exists.”

The rehypothecated catastrophe that we discussed in great detail here (copper financing), here (all commodities), and here (global contagion) appears to be gathering speed as the China’s northeastern port of Qingdao has halted shipments of aluminum and copper due to an investigation by authorities after they found “there is a discrepancy in metal that should be there and metal that is actually there.”

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Copper prices are tumbling already (despite Gartman’s most recent prognostication on Dr. Copper’s China recovery meme) as the world’s 7th largest port disallows any shipments until the probe is complete. Continue reading »

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Jun 03

stacks-of-gold-bars-close

Gold Price Manipulation Was “Routine”, FT Reports (ZeroHedge, June 3, 2014):

Two weeks ago when news broke about the first confirmed instance of gold price manipulation (because despite all the “skeptics” claims to the contrary, namely that every other asset class may be routinely manipulated but not gold, never gold, it turned out that – yes – gold too was rigged) we said that this is merely the first of many comparable (as well as vastly different) instances of gold manipulation presented to the public. Today, via the FT, we get just a hint of what is coming down the pipeline with “Trading to influence gold price fix was ‘routine.” We approve of the editorial oversight to pick the word “influence” over “manipulate” – it sound so much more… clinical.

What the FT found: Continue reading »

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Jun 02

You can’t make this stuff up!

Related info:

- THE BLAZE: What Really Happened To The German Gold Housed In The United States? (Video)

Gold_being_melted


- Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for “Liquidity” (Liberty Blitzkrieg, June 2, 2014):

This is a great example of how the game works. In a world in which every government on earth needs “liquidity” to survive, and the primary goal of every government is and always has been survival (the retention of arbitrary power at all costs), the provider of liquidity is king. So what is liquidity and who provides it?

In the current financial system (post Bretton Woods), the primary engine of global liquidity is the U.S. dollar and dollar based assets generally as a result of  its reserve currency status. Ever since Nixon defaulted on the U.S. dollar’s gold backing in 1971, the creation of this “liquidity” has zero restrictions whatsoever and is merely based on the whims and desires of the central planners in chief, i.e., the Federal Reserve. As the primary creator of the liquidity that every government on earth needs to survive, the Federal Reserve is thus the most powerful player globally in not only economic, but also geopolitical affairs.

The example of the so-called sovereign nation of Ecuador relinquishing its gold reserves to Goldman Sachs for “liquidity” which can be conjured up by the Fed on a whim and at zero cost tells you all you need to know about how the world works (read my post: Why Fiat Money is Immoral).

Now from Bloomberg: Continue reading »

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Jun 02

Aaaand it’s gone!



Added: Jan 8, 2014

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May 26

- Jim Rickards: “It Could Be A Failure To Deliver Physical Gold,” “Physical Gold Is Disappearing, There’s A Mountain of Paper Gold. . . . So A Failure to Deliver Could Cause Panic Buying of Gold.” (InvestmentWatch, May 23, 2014):

And what might be the first snowflake to move? 

“It could be a failure to deliver physical gold,” Rickards suggested. “Physical gold is disappearing, there’s a mountain of paper gold. . . . So a failure to deliver could cause panic buying of gold.”

http://www.moneynews.com/StreetTalk/James-Rickards-Dennis-Kneale-Financial-Crisis-Economy/2014/05/20/id/572264/?ns_mail_uid=33506595&ns_mail_job=1570212_05222014&promo_code=crvzhkqc

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May 26


Added: May 24, 2014

Description:

Dave Kranzler of www.InvestmentResearchDynamics.com joins us today to discuss what is happening with the gold, gold miners and the paper gold “market”. Is mining gold costing China double the current “spot” price just to get it out of the ground? Continue reading »

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May 25

- And The Worst Performing Strategy In 2014 Is… (ZeroHedge, May 25, 2014):

Hedge fund performance continues to be weak so far in 2014 and this week was no different as long/short funds found to their dismay that trading on rational thought and fundamental analysis was for losers. However, global macro strategies are doing the worst of all as carry trades unwind, sanctions create inflows, and geopolitical chaos creates nonsense from sense. The best performing hedge fund strategy… buying-the-most-shorted is beaten only by Bonds.. and in first place of all assets – Gold.

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As Goldman explains… Continue reading »

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May 25

- “I Will Never Sell My Gold,” Marc Faber Warns, China’s “Gigantic Credit Bubble” Unwind Is Just Beginning (ZeroHedge, May 24, 2014)

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May 24

- Caught Red-Handed: This Is What Zoomed In Gold Manipulation Looks Like (ZeroHedge, May 23, 2014)

 

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May 23

Gold-gold-GOLD

- Barclays Fined For Manipulating Price Of Gold For A Decade; Sending “Bursts” Of Sell Orders (ZeroHedge, May 23; 2014):

It was almost inevitable: a week after we wrote “From Rothschild To Koch Industries: Meet The People Who “Fix” The Price Of Gold” and days after “Barclays’ Head Of Gold Trading, And Gold “Fixer”, Is Leaving The Bank“, earlier today the UK Financial Conduct Authority finally formalized what most in the “tin-foil” hat community had known for years, when it announced that it fined Barclays £26 million for manipulating “the setting of the price of gold in order to avoid paying out on a client order.” Furthermore, the FCA confirmed that those inexplicable gold raids which come as if out of nowhere, and slam gold with a vicious force so strong sometime they halt the entire market, had a very specific source: Barclays, whose trader Daniel James Plunkett, born 1976, “sent out a burst of orders aimed at moving the price of the yellow metal.”

This took place for a decade. As the FT reports: Continue reading »

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May 21

Putin chess

- As Russia Dumps A Record Amount Of US Treasurys, Here Is What It Is Buying (ZeroHedge, May 21, 2014):

Last week we commented that based on TIC data, while “Belgium’s” unprecedented Treasury buying spree continues, one country has been dumping US bonds at an unprecedented rate, and in March alone Russia sold a record $26 billion, or 20% of its holdings.

So as Russia is selling a record amount of US paper, what is it buying? For the answer we go to Goldcore which tells us thatRussia Buys 900,000 Ounces Of Gold Worth $1.17 Billion In April.”

 Putin-Gold

 

 

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May 20

- Gold Slammed As ‘Panic-Seller’ Dumps $520 Million In Futures (ZeroHedge, May 20, 2014):

You can’t make this up. An initial dump in gold happened when Europe was getting going late last night but as the US wakes up and markets get active, someone (panic-seller) decided it was an entirely optimal time to sell $520 million notional gold futures – sending the price of the precious metal down $7. Intriguingly, though the notional size was large, the actual move is not as large as we have become used to with the ubiquitous Slamdowns (and it’s a Tuesday). At the same time, USDJPY was ramped… because we must maintain the appearance that stock markets are operating normally despite civil wars, coups, global growth slowdowns, and de-dollarization growing.

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May 14

Gold fix teaser_0

From Rothschild To Koch Industries: Meet The People Who “Fix” The Price Of Gold (ZeroHedge, May 14, 2014):

Earlier today many were stunned when the historic, 117-year old, London Silver Fix announced that in three months it would no longer exist. However, silver is only one half of the world’s two best known precious metals. Which is why we decided to take a long, hard look at that other fix: gold.

The reason for this particular inquiry is because in the aftermath of the rapid and dramatic departure of the world’s largest bank by outstanding notional derivatives, and Europe’s biggest bank by any metric, Deutsche Bank, from the precious metal fix, something felt out of place: almost as if the participants of the “fixing” process which for so many years took place in the office of none other than Rothschild on St. Swithin’s Lane in London, were suddenly scrambling to disappear without a trace.

In conducting our research we hope to not only memorialize just who are these particular individuals who “fix” gold using nothing but publicly available information of course – because after all it is not as if they have anything to hide or fear – but to connect some of the very peculiar dots behind the scenes of what to some, is the original, and most manipulated market in history – that of gold. Continue reading »

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May 10

- Gold Infographic: The Eclipsing Demand Of The East (ZeroHedge, May 9, 2014)

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May 09

- Marc Faber Redux: “I Don’t Trust Anyone… Hold Gold Outside The US” (ZeroHedge, May 8, 2014)

Related info:

- The Importance Of Owning Your Own Bullion And Storing It Outside The Banking System

- RED ALERT: World’s Biggest Gold Storage Company Dumps US Citizens

- Government Cracks Safe-Deposit Boxes

- US DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS – IN WRITING – IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SEIZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES!

- James G. Rickards of Omnis Inc.: Get Your Gold Out Of The Banking System

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May 08

- China Demands Gold As Collateral For Zimbabwe Loans (ZeroHedge, May 7, 2014):

China, as we noted here, is happy to provide the financing to turn Africa into Disneyland – Monorails and all – but there is one catch… the loans must be backed by gold as collateral. As The Source reports, China wants Zimbabwe to use its mineral proceeds to guarantee any future loans having already extended nearly $1.5 billion in the last three years to Harare’s ailing economy. Various minerals have been discussed to back the loans “but we feel gold is more stable,” Zimbabwe’s Mines Minister noted. Of course, China is defending the demand, claiming “it’s in accordance with rules and regulations when granting any loan” and adding that “it doesn’t mean that we will use the collateral.”  Continue reading »

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May 04

Switzerland’s Role in the Gold Market

- Switzerland’s Role in the Gold Market (GoldBroker, Dan Popescu, April 28, 2014)

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Apr 29

- Gold Fix Manipulation Crackdown: Deutsche Officially Resigns London Fix Seat (ZeroHedge, April 29, 2014):

Three months ago, we discussed the increasingly close eye that regulators were keeping on Deutsche Bank (and in fact many other precious metal fix providers) as manipulation concerns shifted from conspiracy theory to conspiracy fact. At the time, Deutsche – among other banks – had suggested it would relinquish its role on the London Fixing committee and was actively marketing its seat to other LBMA members – it failed to find a willing buyer; the WSJ now confirms…

  • DEUTSCHE BANK SAID TO BE UNABLE TO FIND BUYER FOR GOLD SEAT
  • DEUTSCHE BANK RESIGNS SEAT ON GOLD, SILVER FIX, GIVES TWO WEEKS NOTICE – SOURCE

This is hardly surprising given previous comments that possible manipulation of precious metals “is worse than the Libor-rigging scandal.” but it does leave us wondering who is left to do the manipulating? It seems no one wants to be part of the fixing process (critical for so many derivatives contracts) unless they are allowed to manipulate it to their own needs.

As a reminder, Deutsche is one of five banks involved in the twice-daily gold fix for global price setting. Continue reading »

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Apr 29


Added: Apr 25, 2014

Description:

Trends Guru and forecaster extraordinaire Gerald Celente joins Sheila Zilinsky the Weekend Vigilante on his plan for a one-two punch to the globalist agenda and we take back the greatest country in the world

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Apr 26

- Measured by Gold and the Dow, Wheat Is Cheap (But Maybe Not For Long) (OfTwoMinds, April 26, 2014):

Priced in gold and stocks, wheat is near multi-decade lows. That may not last.

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Apr 25

- PBOC Pressures USD Hegemony; Starts Yuan-Denominated Gold & Oil Trading (ZeroHedge, April 25, 2014):

With 23 foreign central banks diversifying from US Dollars to Renminbi and the PBOC actively aiding numerous major financial hubs around the world with bilateral currency swap agreements, it seems yet another nail in the coffin of US dollar hegemony just got hit…

  • *PBOC AIMS TO SET UP GLOBAL PAYMENT SYSTEM FOR YUAN: SEC. NEWS
  • *PBOC TO MAKE GOLD, OIL FUTURES YUAN DENOMINATED: SEC. NEWS

Nothing lasts forever, no matter how much you believe… Continue reading »

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Apr 22

- A Bankrupt World, $26,000 Gold & The Destruction Of Wealth (King World News, April 21, 2014)

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Apr 21

Customers flock to buy gold accessories at a gold store on sale in Taiyuan

- China Goes Dark: PBOC To Keep Goldbugs Clueless About Its Gold Buying Spree (ZeroHedge, April 21, 2014):

One of the more perplexing divergences that have plagued precious metal watchers and goldbugs when it comes to the great “black box” that is the world’s biggest buyer of gold in recent years – China (which overtook India after that particular country established unprecedented capital controls to block the import of gold) is that on one hand China has been allowing the outside world to glimpse its ravenous buying of gold through the Hong Kong-Shenzhen corridor (where nearly 70% of the Chinese gold jewellery business is located) since Hong Kong customs provides a full breakdown of how much gold it exports into China, yet on the other the PBOC has refused to update its official gold holdings in exactly five years.

Continue reading »

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Apr 20

- Peak Smuggling: Indian Has 12 Gold Bars Removed From His Stomach (ZeroHedge, April 20, 2014):

While US central bankers seem to believe that you can eat iPads, it seems one Indian fellow has taken the ongoing restrictions on gold imports, owning, or transacting in India to a whole new level. As we have noted previously – have led to an epidemic of smuggling as Indians continue to horde the precious metal (the only true source of financial security in their view) by any means possible. As The BBC reports, 12 bars of gold have been removed from the stomach of a 63-year-old businessman in the Indian capital Delhi. The surgeon said he had never seen a “case like this before,” and customs officials were called and confiscated the gold – where whistleblowers for gold smuggling are rewarded more richly than for cocaine and heroine smuggling.

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As The BBC reports, and as we have noted before, India, the world’s largest consumer of gold, has seen a record rise in smuggling after a rise in duty on imports of metal to curb the current account deficit.

Last year India’s government hiked the import duty on gold three times to curb demand for the precious metal. Gold imports, which had peaked at 162,000kg in May 2013, came down to 19,300kg in November after the hike.

But this takes the proverbial biscuit… Continue reading »

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Apr 20

FYI.


- The Secret World Of Gold (ZeroHedge, April 20, 2014):

In light of the Chinese demand we discussed earlier, the ongoing manipulation of ‘rigged’ markets everywhere, and rising geopolitical tensions (as the de-escalation continues), we thought it worth dusting off this excellent  and wide-ranging look at the history and present of the barbarous relic, gathering many perspectives (pro and con) on gold.

The following documentary moves from historical shipwrecks to Nazi ‘death gold’ and England’s war chest to recent years where widespread economic uncertainty has given the yellow metal a “new luster in the world of high finance.” Valued for its permanence, beauty and scarcity, people will lie, cheat, steal and kill in the name of gold; and the clip provides color on many of the market manipulations of the last few years. As MacDonald says, whether it’s a few gold coins or gold bars stored in one of the many vaults around the world, many investors are taking a shine to gold. But there’s not a lot of it. It is said that, even melted down, there would not be enough to fill an Olympic swimming pool. Some claim that much of the gold held by the Bank of Canada, the Bank of England, the Federal Reserve and Fort Knox is gone – that for every 100 ounces of gold traded, there exists only one ounce of real, physical gold. So, where is the gold – and who really owns it?

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Apr 19

- The One Thing Most Desired By Chinese Consumers Is… (Zerohedge, April 19, 2014):

Hint: it’s not designer clothes, shoes, bags or watches.

China gold demand

And some additional explanation from the World Gold Council:

Continue reading »

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Apr 15

gold-bars-111

- Chinese Checkers with Gold Prices (Euro Pacific Capital, April 10, 2014):

For decades many of us in the hard money world have speculated that cloak and dagger activity by large financial interests has played a large role in determining performance in the gold market. The focus of this alleged manipulation is believed to be in the London market, and has been widely referred to as “The London Fix.” However those who have blown the whistle have been dismissed as alarmists, gold bugs, conspiracy theorists or worse. But recent revelations should bring us closer to the truth.

Continue reading »

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Apr 05

Worlds-biggest-gold-coin-Australian-Kangaroo-1-Ton

- The Screaming Fundamentals For Owning Gold (Peak Prosperity, April 4, 2014):

This report lays out the investment thesis for gold. Silver is mentioned only where necessary, as a separate report of equal scope will be forthcoming on that topic. Various factors lead me to conclude that gold is one investment that you can park for the next ten or twenty years, confident that it will perform well. Timing and logic for both entering and finally exiting gold as an investment are laid out in the full report.

The punch line is this: Gold (and silver) is not in bubble territory, and its largest gains remain yet to be realized; especially if current monetary, fiscal, and fundamental supply-and-demand trends remain in play.

Introduction

Continue reading »

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Apr 05

“Damn!”

“Where is the Pakistani ‘Gordon Brown’ when you need him?”

“Invade!”

“Oh, wait a minute …

… they DO have nukes.”


Gold-gold-GOLD
According to the IMF’s staff report, the State Bank of Pakistan holds over 2 million troy ounces of monetary gold, having $2.7 billion value at market rate.

- Boosting forex reserves: Pakistan refuses to sell $2.7b worth of gold says IMF (The Express Tribune, March 29, 2014):

ISLAMABAD: Pakistan has refused to sell gold worth $2.7 billion, citing national security reasons, as the International Monetary Fund (IMF) pushes Islamabad to convert the precious metal into cash to build foreign currency reserves, revealed the global lender’s report on Friday.

The report, prepared by IMF’s staff led by its Washington-based Mission Chief to Islamabad Jeffrey Franks, also spills the beans on the ‘$1.5 billion gift’ to Pakistan by ‘Saudi Arabia’ – the name Prime Minister Nawaz Sharif’s government has so far refused to officially share with parliament.

Continue reading »

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Apr 05

- Soaring Chinese Gold Demand And Its Geopolitical Strategy (ZeroHedge, April 5, 2014):

Geopolitical and market background

I have been revisiting estimates of the quantities of gold being absorbed by China, and yet again I have had to revise them upwards. Analysis of the detail discovered in historic information in the context of China’s gold strategy has allowed me for the first time to make reasonable estimates of vaulted gold, comprised of gold accounts at commercial banks, mine output and scrap. There is also compelling evidence mine output and scrap are being accumulated by the government in its own vaults, and not being delivered to satisfy public demand.

The impact of these revelations on estimates of total identified demand and the drain on bullion stocks from outside China is likely to be dramatic, but confirms what some of us have suspected but been unable to prove. Western analysts have always lagged in their understanding of Chinese demand and there is now evidence China is deliberately concealing the scale of it from us. Instead, China is happy to let us accept the lower estimates of western analysts, which by identifying gold demand from the retail end of the supply chain give significantly lower figures.

Continue reading »

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