- As cold snap looms, Sandy sets NY up for a new fuel crisis (Reuters, Nov 3, 2012):
Northeast residents lucky enough to have a roof after Hurricane Sandy struck now face a new problem: a heating oil shortage and widespread power outages mean some homes may go cold as the weather turns wintry.
A cold snap in the New York City area – with daily low temperatures set to drop into the upper 30s Fahrenheit (2-4 degrees Celsius) early next week – is raising concerns that residents of the storm-stricken areas of New York, New Jersey or Connecticut could be left without heat as they recover from one of the worst storms in U.S. history.
- New Yorkers in fuel scramble as storm-hit pumps dry up (Reuters, Oct 31, 2012):
NEW YORK – Drivers and homeowners scrambled to secure fuel for their cars and generators in the U.S. Northeast on Wednesday as storm-hit gasoline stations started to run dry.
More than half of all gasoline service stations in the New York City area and New Jersey were shut because of depleted fuel supplies and power outages, frustrating attempts to restore normal life, industry officials said.
Reports of long lines, dark stations and empty tanks circulated across the region. Some station owners were unable to pump fuel due to a lack of power, while others quickly ran their tanks dry because of increased demand and logistical problems in delivering fresh supplies.
The lack of working gasoline stations is likely to compound travel problems in the region, with the New York City subway system down until at least Thursday and overland rail and bus services severely disrupted.
Homeowners and businesses relying on back-up generators during the power cuts, including many Wall Street banks in lower Manhattan, may also run short of fuel.
Concerns that the sovereign debt crisis may be entering a new phase and the risk of contagion has seen peripheral eurozone bonds fall sharply and the euro fall against major currencies and gold today.
Sovereign debt risk, global inflation concerns, geopolitical risk, disappointing European earnings and concerns about Japan’s coming reporting season have seen equities weaken and new record nominal highs for gold and silver (all time and 31 year).
Greek bond yields have continued their relentless march higher and have risen above 14.07% (10 year) and Portuguese debt (10 year) has risen to a euro era record over 9.27%.Spanish and Irish debt are also under pressure this morning.
Euro gold has been in a range between €900 and €1,070 for nearly a year (since last May – see chart) and this period of consolidation looks set to come to an end as gold pushes higher. Once the technical resistance at the record high of €1,072/oz (12/28/10) is breached, gold will challenge €1,100/oz .
In the current bull market, euro gold has seen many long periods of correction and consolidation prior to rapid gains and sharp moves upwards. The length of the recent correction (almost a year) suggests that the coming move could be very sharp and see gold rise to €1,200/oz in the coming weeks.
Gold is increasingly being seen as the superior currency in a world of trillion dollar and euro deficits and bailouts. Indeed, the printing and electronic creation of billion and trillions of the major paper currencies is increasingly making gold and silver the currencies of last resort.
Governments and central banks are debasing currencies through bailouts, deficit spending and quantitative easing which is leading to a massive increase in the supply of fiat currencies. Precious metals are rare and finite and this is why major currencies are falling in value versus gold and silver.
The scramble for non-dilutable currencies hits a frenzy as silver just touches on a fresh 31 year high of $34.90.
To commemorate this historic event, the US Mint has halted American Eagle silver coing production, in addition to its ongoing halt of American Buffalo coins:
“because of the continued demand for American Eagle Silver Bullion Coins, 2010-dated American Eagle Silver Uncirculated Coins will not be produced. The United States Mint will resume production of American Eagle Silver Uncirculated Coins once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products.”
Submitted by Tyler Durden on 03/02/2011 09:45 -0500
And of course Blythe Masters was right that nobody can manipulate the silver market, right?:
Sure Blythe! Nobody believes that BS anymore. Game over.
It’s just a fact now that there is nothing left!
Silver is still incredibly cheap.
I would buy every silver Maple Leaf, American Eagle or Wiener Philharmoniker I could get my hands on.
Only physical gold and silver are real, everything else is an illusion.
More on gold and silver:
With continued reports of booming sales and tightness in the silver market, today King World News interviewed Dave Madge director of sales at the Royal Canadian Mint. When asked if the RCM is having trouble acquiring silver Madge responded, “Demand right now for silver is through the roof and it shows no signs of slowing at this point. Sourcing silver is becoming very difficult. We are competing with a great many players when it comes to purchasing silver and many of these players are bidding the price higher.”
Dave Madge of the Royal Canadian Mint continues:
“Our advantage is that we have had long-term relationships with our suppliers and that has helped us in this situation. We have been able to leverage off of those relationships to get supply, but it still remains a big challenge sourcing material. We’re looking at ways of mitigating our risk regarding supply of silver.
We are anticipating it to become even more difficult to secure supplies in the future. This is based on what we are seeing firsthand and what our suppliers are telling us. We work closely with these banks to secure silver and they tell us there is a lot of competition.”
Full article here: King World News
On September 21, 2010 I published an article entitled “More Forensic Evidence of Gold & Silver Price Manipulation”. In that article I showed how silver from 2003 to 2010 had never traded freely at all; I showed that silver was algorithmically traded with gold and there was a very clear relationship between the price of gold and the price of silver. For those who haven’t read the previous article the following figure 1 (figure 4 in the previous article) demonstrates the inter-relationship.
Figure 1 Cross-plot of Silver versus Gold 2003-2010
Figure 1 is a cross-plot of the price of gold against the price of silver for every trading day from June 2003 to September 2010. There are two linear relationships, one is pre-2008 (black line) and the second is post 2008 (green line). The best fit equations for the two data sets are also given on the chart.
The stunning revelation from the data analysis was that if on any day I knew what the price of gold was I would be able to calculate the silver price from the equation of the relationship! How is that possible in a free market? It simply is not possible and so the conclusion is that silver is not in a free market but is manipulated to move algorithmically with the price of gold. I have written many articles that show that gold is itself manipulated and suppressed (for example, see Gold Market is not “Fixed”, it’s Rigged)
I have updated the chart of Figure 1 which is shown in Figure 2.
Figure 2 Cross-plot of Silver versus Gold 2003-2011
Since September 2010 silver has broken its golden shackles. The algorithmic trading that kept the price of silver subdued for seven years has been completely annihilated.
On Friday silver closed in complete backwardation on the Comex. Spot silver closed at $29.075/oz while FEB 2011 closed at $29.064/oz and DEC 2015 closed at $29.026/oz. I believe this is the first time in history that this has happened. Silver traded in backwardation between the spot price and futures contract up to one year out during the blatantly manipulative precious metals bashing of January, but now the entire futures structure is in backwardation. This is a sure sign there are shortages of silver because it means that buyers will pay a premium for silver delivered sooner rather than later.
Signs of shortages have also been apparent from a shrinking silver inventory on the Comex in the face of rising prices. The registered inventory stands at a paltry 43 Mozs. In addition there is lots of anecdotal evidence that there are tight supplies everywhere. There are reports of refineries refusing to take new orders due to insufficient silver feedstock.
New Mexican Governor Susana Martinez makes announcements regarding gas shortages from the Emergency Operating Center on the National Guard Base just south of Santa Fe, N.M., on Thursday, Feb. 3, 2011. Secretary of Homeland Security and Emergency Management Michael Duvall, left, and Major General Kenny C. Montoya, right, look on. Martinez has declared a state of emergency as thousands of New Mexico residents lost natural gas service due to the bitter cold. Martinez sent all nonessential state workers home for the day Thursday, and urged all residents to turn down their thermostats, bundle up and shut off appliances they don’t need for the next 24 hours. (AP Photo/The New Mexican, Natalie Guillén)
ALBUQUERQUE, N.M.—With tens of thousands of people across New Mexico without natural gas service, Gov. Susana Martinez on Thursday declared a state of emergency, ordered all government offices be shut down Friday and urged schools to “strongly consider” remaining closed for the day.
Demand has soared because of extremely cold weather across the state since Tuesday. New Mexico Gas Company said rolling blackouts in West Texas also impeded the delivery of natural gas into New Mexico.
Martinez declared a state of emergency for all of New Mexico, urging residents to turn down their thermostats, bundle up and shut off appliances they don’t need for the next 24 hours.
She later announced all state operations not providing critical services would be closed Friday to decrease the strain on energy resources throughout the state.
“Due to statewide natural gas shortages, I have ordered all government agencies that do not provide essential services to shut down and all nonessential employees to stay home” on Friday, Martinez said after meeting with public safety personnel in Albuquerque.
“I have also encouraged all schools that have not already announced closures to strongly consider doing so,” she said.
And ATM’s are running out of cash:
- Cash machines are running out of money due to snow (Telegraph):
Cash machines are running out of money ahead of what is traditionally one of the busiest shopping weekends of the year.
The heaviest snowfall for 20 years means security vans carrying cash are being prevented from making deliveries to their regular destinations.
High street bank HSBC confirmed yesterday that snow was causing problems for some of its drivers.
It reported that 7 per cent of its cash machines were closed yesterday and that if levels dropped any further, it would be reach “unacceptable levels”.
* Two pensioners die after collapsing in their gardens
* Milder temperatures expected tomorrow but falling again on Sunday
* Short-haul flights from Gatwick cancelled until 5pm
* Petrol forecourts run dry as deliveries are held up
* Rail networks cancel services for the third day running
Petrol forecourts were today running dry and food stores were struggling to replenish their shelves as icy conditions halted deliveries.
‘Critical’ shortages of petrol have been reported by the RMI Petrol Retailers Association, with remote areas being particularly badly affected.
Some fuel stations have also been accused of ‘cashing in’ on the crisis by increasing their prices – with one garage in Surrey putting up the cost of diesel per litre from £1.24 to £1.28 within the past four days.
The news came as snowfalls eased but temperatures plummeted even further, dropping -20.1C in Scotland and -7C in London and Birmingham overnight.