Author: Avi Gilburt Posted: Friday , 21 Nov 2014 MARKET WATCH -
I do not often write about the metals on MarketWatch, but have seen too many bearish articles calling for the death to the metals, so I felt compelled to speak up. While many are now saying it is time to sell metals, I will have to disagree. The time to sell your metals was several years ago. Now is the time to start looking to buy them back.
Please allow me to start with some of my history in this market.
For those of you that remember the summer of 2011, gold was in the middle of a parabolic run, with some days seeing more than $50 gains in price. However, in my first gold article on Seeking Alpha on Aug. 22, 2011, I provided my topping target for gold, in the face of the parabolic gold run, when everyone was so certain we would be easily seeing over $2000:
Author: Lawrence Williams Posted: Friday , 21 Nov 2014 LONDON (MINEWEB) -
The latest announcement from the Russian Central Bank shows that the nation is still accumulating gold at a high level. Total gold reserves according to figures compiled by Nick Laird of www.sharelynx.com have now reached 1,169 tonnes having been expanded by a further 600,000 ounces (18.7 tonnes) in October. This moves Russia further ahead of China as far as ‘official’ gold reserve figures are reported (China’s figure reported to the IMG is 1,054 tonnes which it has been for the past five years, although it is widely believed to be accumulating substantial additional gold reserves without declaring them).
SILVER MINING PRODUCTION worldwide is set to reach an all-time high in 2014, according to new analysis from the market’s leading data consultancy. This week’s Interim Silver Market Review from GFMS – a division of the Thomson Reuters newswire and data agency – says silver mining output will rise 3.5% this calendar year from 2013. However, due to this year’s steep fall in prices, the silver market is also seeing a continued decline in ‘scrap’ flows from sales of existing above-ground holdings. So the total increase in supply to the market expected to increase by only 2.9% year-on-year.
November 21 (King World News) - Worried About Gold / Silver Action - Just Read This
Creative destruction: does an about-face for the sector lie ahead pt1
Gold stocks have failed to deliver the expected leverage to gold in recent years. It appears that mining stocks are being punished by investors for the mistakes made in previous years. Apart from cost inflation, the main reasons for this were sub-optimal capital allocation and the investment alternative offered by gold ETFs backed by bullion, but above all, the extrapolation of an ongoing upward trend in the gold price.1 In the course of the bull market, the industry used ever higher price assumptions in order to include previously unprofitable ounces into its mine plans. As a result, the life of mines was increased and production expanded.2 A large part of the expansion however consisted of high-priced ounces....
Society expects bank employees to be honest when entrusting them with money. However, new research involving bankers suggests they are more likely than other professionals to be dishonest if they are reminded about their professional role.
When bank employees were primed to think less about their profession and more about normal life, however, they were less inclined to dishonesty, the study by the University of Zurich reveals.
"Many scandals..have plagued the financial industry in the last decade," Ernst Fehr, a researcher at the University of Zurich who co-led the study, told Reuters. "These scandals raise the question whether the business culture in the banking industry is favoring, or at least tolerating, fraudulent or unethical behaviors."
Author: A. Ananthalakshmi (Reuters) Posted: Thursday , 20 Nov 2014 SINGAPORE (REUTERS) -
Some of the biggest price moves in gold since late October have, unusually, occurred in Asian hours and traders more accustomed to following the lead of their Western counterparts suspect a big increase in algorithmic trading may be to blame.
Sensitivity to the dollar-yen exchange rate may also help explain the moves, although some traders speculated that the timing looked suspiciously like attempts to catch Chinese traders off-guard during their lunch break.
Liquidity in Asia tends to be thin until Europe wakes up but recent weeks have been different: COMEX gold futures, the busiest gold contract in the world, have suffered sharp sell-offs in Asia, sometimes sparked by the news flow or currency moves but often for no identifiable reason.
"It is unusual for Asia to be seeing these busy trading sessions," said David Govett, head of precious metals at broker Marex Spectron in London.
After two years, and 396 pages of report, the Senate investigations committee finds (translating their gobbledygook into English) that the banks did indeed corner and rig the commodity market. As Bloomberg reports, the Senate panel said the firms have eroded the line separating banking from commercial activities to the detriment of consumers and the financial system. The holdings give banks access to non-public information that could move markets and increase the likelihood that industrial accidents will spur taxpayer bailouts, the report said... (i.e. manipulated the system). The hearing, involving bankers from Goldman, Morgan Stanley, and JPMorgan begins at 930ET...
"We had to struggle with the old enemies of peace--business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.
They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob."
Franklin D. Roosevelt
"Why is JP Morgan getting so much heat? Maybe because it is a massive international crime syndicate."
Matt Taibbi, Talking JPM With Sam Seder
JPM and Goldman sought and obtained manipulative powers in global commodities, even while they were being bailed out on the back of the American people? Oh no, nothing like this could be true, or so the shills and toadies of the moneyed interests will say. Just get the government out of our way, and everything will be all right. The market is naturally rational and efficient, pure and pristine. No Bank would risk its reputation by doing anything illegal.
Especially when they buy off and intimidate enforcement, write the laws, and do what they will.
Settlements in yuan between China and Russia have increased ninefold in annual terms between January and September 2014, says the Chinese Ministry of Economic Development.
"The settlement in national currencies between China and Russia in bilateral trade amounted to about 2 percent in 2013. There has been a significant growth in 2014. In particular, the use of the yuan in mutual settlements increased nine times in the first nine months of 2014." TASS quotes Lin Zhi, head of the Europe and Central Asia Department of the Chinese Ministry of Economic Development.
Precious metals have taken a horrible beating over the past month. They were suppressed to levels not seen since 2010. The result of this price depression was a massive increase in demand from individual investors and nations alike.
No longer are people fooled by the paper price of precious metals. Premiums have remained relatively high through this price correction and demand has been so intense, that the US Mint was forced to cease sales of their ever-popular Silver American Eagles.
Nation states, such as China and Russia are well known for their affinity to gold and have also continued their accumulation of precious metals. Russia, which officially became the fifth largest holder of gold recently, announced that it has once again increased their gold reserves by another 150 additional tonnes in 2014. An increase of 8.4% year over year.
The monetary tectonic plates are shifting, and predicting the next global financial earthquake is relatively easy.
I recently suggested that the devaluation of the yen was Japan's Monetary Pearl Harbor: a direct attack on the currencies of its major trading partners: the euro (European Union), the won (South Korea), the Australian dollar (AUD) and the U.S. dollar (USD), which affects both the U.S. and China since China's currency, the renminbi, is pegged to the USD.
Though there have been no overt (that is to say, public) counter-attacks, this may not reflect monetary peace so much as an undeclared war. Correspondent Mark G. observed that the current geopolitical backdrop is considerably more unsettled than the relatively benign global chessboard in 2008:
Today King World News was stunned to learn that the Swiss politician who launched the Swiss Gold Initiative was actually banned from participating in the televised debate. Luzi Stamm, who was one of the primary architects of the Swiss Gold Initiative, spoke with KWN about why he was banned from the televised debate and why “It is not possible (to continue) what’s (currently) going on in the Western world.”
The Gems and Jewellery Export Promotion Council (GJEPC) has released the details of imports of raw materials for gems and jewellery for the month of October this year. India's Gold Bar imports surged 15% during Oct 2014: GJEPC
Iran has opened a new gold processing plant, reportedly the biggest in the Middle East, hoping to double its production of precious metals. Using a unique technology, Tehran says it will now mine up to three tons of gold per year.
Iranian TV reported that the opening ceremony was attended by First Vice President Ishaq Jahangiri.
The new facility is located near one of the country's richest mines, Zareh Shuran. It is located 35 kilometers from the city of Takaab in northwest Iran, in an area where gold, silver, and mercury are extracted.
Across the industry, costs are about $1,300 an ounce including debt repayments, Holland said by phone from Johannesburg today, citing analysts’ research. Gold dropped 0.1 percent to $1,182 an ounce, bringing the decline since the beginning of 2013 to 29 percent.
“The industry by and large is under water,” Holland said. “I would expect further writedowns. Production I think will be curtailed but it will take some time to filter through the system.”
Gold producers are struggling to adapt to a lower bullion price after a decade of debt-fueled expansion, acquisitions and cost inflation during the boom years that saw bullion peak at $1,921.17 an ounce in September 2011. The spot price has tumbled in the past 18 months as investors speculate the Federal Reserve will raise interest rates due to an improving U.S. economy, lowering demand for the safe-haven metal.