Aug 03

Comex On The Edge? There Are Now A Record 124 Ounces Of Paper Gold For Every Ounce Of Physical (ZeroHedge, Aug 3, 2015):

Over the weekend, we got what was merely the latest confirmation that when it comes to sliding gold prices, consumer of physical gold just can’t get enough. As the Times of India reported over the weekend, India’s gold imports shot up by about 61 per cent to 155 tonnes in the first two months of the current fiscal “due to weak prices globally and the easing of restrictions by the Reserve Bank. In April-May of the last fiscal, gold imports had aggregated about 96 tonnes, an official said.”

This follows confirmations previously that with the price of gold sliding, physical demand has been through the roof, case in point: “US Mint Sells Most Physical Gold In Two Years On Same Day Gold Price Hits Five Year Low“, “Gold Bullion Demand Surges – Perth Mint and U.S. Mint Cannot Meet Demand“, “Gold Tumbles Despite UK Mint Seeing Europeans Rush To Buy Bullion” and so on. Indicatively, as of Friday, the US Mint had sold 170,000 ounces of gold bullion in July: the fifth highest on record, and we expect today’s month-end update to push that number even higher.

US Mint gold July 2015

But while the dislocation between demand for physical and the price of paper gold has been extensively discussed here over the years, most recently in “Gold And The Silver Stand-Off: Is The Selling Of Paper Gold And Silver Finally Ending?”, something unexpected happened at the CME on Friday afternoon which may be the most important observation yet. Continue reading »

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Jul 31


“Western Central Banks Have Set Us Up; You’ll Hear The Printing Presses From Mars” (ZeroHedge, July 31, 2015):

As Marc Faber said at SocGen’s January conference, if he could short central banks directly he would do so, but gold is the next best thing; and despite it being sucked into the general commodity malaise, Albert Edwards says “Gold is a must-have holding in this world.”

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Jul 31

H/t reader squodgy:

“Seems mainstream media is being treated for what it is, lying, misleading false flag propagandists, and we’re not alone in dismissing them.”

And we’ve been here before.

What they are doing, by selling billions of dollars of paper gold in a second, is only done to keep the price of gold and silver artificially low.

Gold, Precious Metals Flash Crash Following $2.7 Billion Notional Dump

Silver Slammed As ‘Someone’ Dumps $1.4 Billion In ‘Paper’ Gold Futures

Because Nothing Says “Best Execution” Like Dumping $1.5 BILLION In Gold Futures At 0030ET

Gold Plunges Back Below $1300 As ‘Someone’ Dumps $2.3 BILLION In Futures

Gold Slumps Most In 2014 As “Someone” Dumps $1.37 Billion In Futures At US Open

This is the new form of ‘gold confiscation’ by TPTB, trying to keep the people away from buying one of the save havens before the collapse happens and making it cheap for themselves.

Governments Worldwide Are Implementing Orwellian Gold Confiscation Today. You Just Haven’t Realized it Yet.

Meanwhile China and Russia are buying.

Perth Mint Gold Bar (1 kilo)

Perth Mint Gold Bar (1 kilo)

Demand for Gold Bullion Surges – Perth Mint, and U.S. Mint Cannot Meet Demand (GoldCore, July 31, 2015):

– Perth Mint sees surge in demand and cannot keep up with demand
– “Our biggest restriction is the amount of unrefined gold we’re getting in from producers”
– Very high demand for Perth Mint coins, bars coming from Asia, U.S. and Europe
– U.S. Mint sees highest sales of gold coins in over 2 years
– U.S. Mint restrictions on silver coins due to very high demand
– Gold sentiment has moved from despondency to depression (see chart)
– Current negative sentiment despite strong demand is good contrarian indicator

Depressed prices have led to the usual market response, a surge in physical demand for coins and bars globally.

This is confirmed in conversations we have had with our refiner and mint partners in recent days. There are growing shortages of supply of small coins and bars. This is resulting in delays in receiving bullion and indeed to rising premiums.

Asian gold demand picked up this week keeping premiums robust and slightly higher in the world’s top gold buying regions.
Continue reading »

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Jul 29

From the article:

“Condescending as the entire article is to gold owners, he even goes so far to quote the Hebrew Bible!”


4 Mainstream Media Articles Mocking Gold That Should Make You Think (Liberty Blitzkrieg, July 29, 2015):

For those of you who have been reading my stuff since all the way back to my Wall Street years at Sanford Bernstein, thanks for staying along for the ride. I appreciate your support immensely considering that I essentially no longer write about financial markets at all, and for many of you, that remains your profession and primary area of interest. Continue reading »

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Jul 27


Gold’s Two Stories: Paper Markets Collapse… While The Retail Public Buys At A Record Pace (ZeroHedge, July 26, 2015):

We’ve seen some significant swings in precious metals over the last several years and if we are to believe the paper spot prices and recent value of mining shares, one would think that gold and silver are on their last leg. Last weekend precious metals took a massive hit to the downside, sending shock waves throughout the industry. But was the move really representative of what’s happening in precious metals markets around the world? Or, is there an effort by large financial institutions to keep prices suppressed? In an open letter to the Commodity Futures Trading Commission First Mining Finance CEO Keith Neumeyer argues that real producers and consumers don’t appear to be represented by the purported billion dollar moves on paper trading exchanges.

With China recently revealing that they have added some 600 tons of gold to their stockpiles and the U.S. mint having suspended sales of Silver Eagles due to extremely high demand in early July, how is it possible that prices are crashing? Continue reading »

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Jul 25


US Mint Sells Most Physical Gold In Two Years On Same Day Gold Price Hits Five Year Low (ZeroHedge, July 24, 2015):

Just like in the case of silver three weeks ago, today’s gold liquidation was not due to selling of physical metal. In fact, quite the contrary: according to the US mint, so far in July the mint has sold a whopping 143,000 ounces of physical gold – the most in over two years, or since April of 2013 – even as the price of gold briefly slid to the lowest level in 5 years.

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Jul 24

This Has Never Happened To Gold Before (ZeroHedge, July 24, 2015):

For the first time since records began, hedge funds are net short gold futures, according to CFTC data…


This is what happened the last time gold saw a ‘low’ net long position…


Is this why Gold is spiking this afternoon? Continue reading »

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Jul 24


Gold “Capitulation” As Down 8% In July – Smart Money Buying Dip (ZeroHedge, July 24, 2015)

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Jul 24

Gold “Flash-Crashes” Again Amid Continued Commodity Liquidation As China Manufacturing Slumps To 15-Month Lows (ZeroHedge, July 23, 2015):

As Bridgewater talks back its now widely discussed bearish position on fallout from China’s equity market collapse, Chinese stocks rose at the open (before fading after ugly manufacturing data). However, liquidations continue across the commodity complex in copper, gold, and silver. Though not on the scale to Sunday night’s collapse, the China open brought another ‘flash-crash’ in precious metals. All signs point to CCFD unwinds, and forced liquidations as under the surface something smells rotten in China, which has just been confirmed by the lowest Manufacturing PMI print in 15 months.

Gold flash crashed…


As we noted previously, while the actual selling reason was irrelevant, the target was clear: to breach the $1080 gold price which also happens to be the multi-decade channel support level. Continue reading »

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Jul 23

The Hunt For The “Mystery” Gold “Bear Raid” Leader Begins (ZeroHedge, July 23, 2015):

In the immediate aftermath of Sunday night’s massive gold slam, which was oddly reminiscent of the great silver crash of 2011 when on May 1 just around 6:25pm, silver plunged by 15%, from $48 to $42 with no news or catalyst…

Silver 5.1

Continue reading »

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Jul 21


What Happened The Last Time The Mainstream Media Unleashed The Anti-Gold Artillery (ZeroHedge, July 20, 2015):

With the mainstream media onslaught against precious metals climaxing this weekend as WSJ’s Jason Zweig proclaimed gold “like a pet rock,” describing owning gold as “an act of faith,”we thought it worthwhile looking back at the last time ‘everyone’ was slamming gold and entirely enthused by the omnipotence of central bankersMay 4th, 1999 – “Who Needs Gold When We Have Greenspan?”

Over 16 years ago, The New York Times’ Floyd Norris unleashed the last big gold slamming piece topping a period of precious metal bashing… Continue reading »

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Jul 20


The Case Of China’s Missing Gold (ZeroHedge, July 20, 2015):

Chinese Gold reserves jump 604 tons from 1,054 tons last reported in 2009 to 1,658 tons. Many gold observers ask: “Is that it”? Since 2009 China has mined over 2,000 tons of gold and imported over 3,300 tons of gold through Hong Kong*. Where did it all go?


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Jul 20

$550 Million Gold Futures Notional Dumped After Close – Back Below $1100 (ZeroHedge, July 20, 2015):

Minutes after the cash equity close, gold prices tumbled, having leaked lower all afternoon, breaking back below $1100. Overnight flash crash lows were $1080.


Futures show around 5000 lots dumped…

Continue reading »

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Jul 20

Last Night’s Gold Slam So Furious It Halted The Market Not Once But Twice, And The Funniest “Explanation” Yet (ZeroHedge, July 20, 2015):

Yesterday, just before the Chinese market opened, precious metals but mostly gold, flash crashed in milliseconds with a violent urgency never before seen. We documented the unprecedented event last night, but for those who missed it, the following chart from Nanex clearly lays out just how sudden the “out of nowhere” selling was, which led to not one but two 20-second halts in the gold futures market spaced out precisely 30 seconds apart as a result of a Velocity Logic (or lack thereof) event.

gold halted twice

For those following the gold market, last night’s event was not surprising: after all just on this website we have documented at least three occasions when furious algorithmic gold selling broke the gold futures market for at least 10 seconds, to wit: Continue reading »

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Jul 20

Related info:

China Increases Gold Holdings By 57% ‘In One Month’ In First Official Update Since 2009


gold smash_0

Gold, Precious Metals Flash Crash Following $2.7 Billion Notional Dump (ZeroHedge, July 19, 2015):

The last time gold plummeted by just over $30 per ounce (dragging down silver and bitcoin with it) and resulted in a crash so furious it led to a “Velocity Logic” market halt for 10 seconds, was on January 6, 2014. Many said this was just perfectly normal selling, although we explicitly said (and showed) that it was a clear case of an HFT algo gone wild (following an order to do just that and slam all sell stops) when someone manipulated the market and repriced gold substantially lower.

Precisely one month ago, some 18 months after the incident, the Comex admitted as much, when it blamed the collapse on “unusually large and atypical trading activity by several of the Firm’s customers and caused the mass entry of order messages by Zenfire, which resulted in a disruptive and rapid price movement in the February 2014 Gold Futures market and prompted a Velocity Logic event.” Curiously despite the “errant” order, gold did not rebound because the entire purpose of the selling slam was to reset the prevailing price far lower. This is what the Comex said in Disciplinary action 14-9807-BC: Continue reading »

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Jul 17


China Increases Gold Holdings By 57% “In One Month” In First Official Update Since 2009 (ZeroHedge, July 17, 2015):

Back in April we wrote that “The Mystery Of China’s Gold Holdings Is Coming To An End” as a result of China willingness to add the Yuan to the IMF’s SDR currency basket which would require the disclosure of China’s gold holding ahead of an IMF meeting on SDR composition which may be held in October.

By way of background, the reason why everyone has been so focused on Chinese official gold holdings is that there has been no official update to the gold inventory of the world’s biggest nation, which have been fixed at 33.89 million oz since April 2009, a little over 1000 tons. In other words, the PBOC’s gold inventory has been “unchanged” for over 6 years which is in stark contrast to the ravenous buying of physical gold China has been engaging in for the past 5 years. Continue reading »

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Jul 17

Silver Slammed As ‘Someone’ Dumps $1.4bn In ‘Paper’ Gold Futures (ZeroHedge, July 17, 2015):

Following “good” Housing data, “bad” CPI data, and “ugly” wage growth data, someone decided to dump $1.4 billion notional in gold futures markets (sending the price to 2010 levels), sending silver plunging also…

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Jul 07

Gold & Silver Slammed On Massive Volume As Margin Calls Mount (ZeroHedge, July 7, 2015):

FX markets are roiling today, US and German bonds are surging (yields are tumbling), and European stock and bond markets are ugly again. Between all of this we are seeing ‘jerky’ moves in many disparate instruments as it appears margin calls are mounting and forced unwinds accelerate across markets, the latest of which is gold (and silver) which just saw someone decide to dump almost $1 billion notional instantly into the open market.

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Jul 04

What JPMorgan is doing to the “Other” commodities space, Citigroup has just done to the “Precious Metals” derivative market.

Citigroup Just Cornered The “Precious Metals” Derivatives Market (ZeroHedge, July 4, 2015)


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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


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


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


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


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


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

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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