Nova Scotia offered up 406,700 ounces of gold from their house account for the first delivery day in August. That is the biggest number I have seen in some time.
And they sold it at what was close to the low for yesterday at $1,332. That's what one gets when they sell big in an active month which August is for gold. What were they thinking?
The silver deliveries were fairly inconsequential for August, so I did not bother to update them.
Uncle Buck, aka la douleur du monde, took the gas pipe on that horrible GDP number, at 1.2% versus 2.6% expected, with a downward revision to 0.8% in the prior period. No wonder the Fed balked at even a fairly symbolic rate increase this week. They may play dumb, but they know.
Gold is on the threshold of breaking out as you can see on the chart below, and silver is looking fairly positive as well.
Gerald Celente: “We are now seeing destabilization, and that’s where gold and silver come in because those are the safe haven assets. A number of months ago on King World News I forecast that the next sharp downturn in gold was going to be the last one before the beginning of the next gold bull run. So while we may see gold and silver prices go a bit lower, maybe even another 18 percent lower, we believe that is going to be the lowest of the lows. And from that time on it’s the beginning of the new gold bull run…
Click through for the rest and the audio interview.
Dirk Baur, formerly a finance professor at the University of Technology in Sydney, now professor of accounting and finance at the University of Western Australia in Perth, this month updated his 2013 study about gold market manipulation --
Quality, quality of life, and well-being are not easily quantified, so they are ignored. I often write about the Tyranny of Price, the rarely examined assumption that lower prices are all that matters.
Thanks to the Tyranny of Price, the quality of many goods has plummeted.Obsolescence is either planned or the result of inferior components that fail, crippling the entire product. As correspondent Mark G. has observed, the poor quality we now accept as a global standard wasn't available at any price in the 1960s-- such poor quality goods were simply not manufactured and sold. There is another even more pernicious consequence of the Tyranny of Price: globalization, which makes two promises to participants: 1) lower prices everywhere and 2) manufacturing work that will raise millions of poor people in developing economies out of poverty.
(Kitco News) - The chief executive of Newmont Mining Corp. (NYSE: NEM) looks for gold to remain underpinned by both supply and demand fundamentals for some time to come, which in turn provides a big revenue boost for companies in the mining sector.
“Every $100 change in the price of gold means an additional $350 million in free cash flow into the business,” said Gary Goldberg, president and chief executive officer. “If the roughly $300-an-ounce price increase we’ve seen for the year to date sustained itself for a full year, then we’ve delivered another $1.1 billion in free cash flow, which allows us to pay down debt and invest in our best projects and pay dividends to shareholders.”
In terms of gold, and silver, analysis from those ‘expert pundits’ who tend to monopolise the information highway with their self-promotional opinions, usually with an agenda to promote their own subscription websites and newsletters, or their latest books, it seems to be a case of ‘bulls are bulls and bears are bears and never the…
In terms of gold, and silver, analysis from those ‘expert pundits’ who tend to monopolise the information highway with their self-promotional opinions, usually with an agenda to promote their own subscription websites and newsletters, or their latest books, it seems to be a case of ‘bulls are bulls and bears are bears and never the twain shall find common ground’. They have made their positions clear over and over and while both sides may ultimately prove to be correct in their views at some point over very long periods of time, they do not tend to be good guides for the investor in the short to medium term timeframes in which most of us make investment decisions. They may call trends correctly from time to time, but their end-predictions tend to be way off.
There are exceptions of course. Bank analysts tend to take a more balanced viewpoint, but they seem to follow a herd instinct and are totally reactive. Gold follows an upwards path for a month or two and the analysts raise their forecasts, and vice versa. They are not opinion leaders but followers.
I like to think of myself as having a reasonably balanced view on precious metals, although I do admit to being marginally bullish at the present time – perhaps being more swayed by bullish arguments than by bearish ones at the moment, but I would like to think I would be prepared to change my position should the fundamentals which I follow start to look like moving in a different direction. But then my background is in mining engineering, which I believe to be a pragmatic discipline, rather than in economics where, sometimes strongly held opinions seem to have little connection with day to day life reality.
So, I tend to discount arguments that tell me that gold is going to $5,000 or $10,000 in the medium term – to be frank I’m not sure I’d want to be living in a world where this were to occur, the scenario is probably too horrific and only likely to be brought about by total economic collapse.
I finished my last writing with the question “will we still have the rule of law?” and commented what a can of worms this topic is. While I knew the question of the rule of law would certainly come up later this year, I had no idea how quickly! Normally forensic logic is a process of “connecting dots”, in this instance the “dots” are more like one giant blob of crap covering the page entirely. On many previous occasions we have seen election fraud, market riggings and bogus economic reports, the corruption is now no longer contained or done in secret… it is done in public. Maybe so the public can “see it”? Let’s take a look at “law”.
We have heard stories where the police are confiscating cash during traffic stops where the driver/passenger then has to prove “how or where” they got the money. In many cases, even after proof is delivered …the money is not returned. We also have recently seen where Oklahoma troopers/officers have technology to swipe debit cards and clear balances because “you might buy drugs or commit a crime” with that cash. Does this scare you? It should!
A week or so back, we heard of Bill Clinton meeting with Attorney General Loretta Lynch on an airport tarmac. Within a week, James Comey (who turns out to have many past trails crossing the Clinton’s path)
In effect, helicopter money turns the entire economy into a Ghost City. The possibility that Japan might launch helicopter money stimulus sent global stock markets soaring in a paroxysm of pleasurable anticipation. But exactly what is helicopter money and what connection does it have to stock valuations, if any?
Broadly speaking, helicopter money is government deficit spending that is directed to households rather than the financial sector. Deficit means the government doesn't have extra cash to pay for the stimulus program--it borrows it by selling government bonds. With interest rates near-zero or even negative, it doesn't cost governments much to borrow huge sums from future taxpayers. All bonds are borrowed from future taxpayers, because somebody will have to pay back the principal, even if there are no interest payments due.
Economics is based on human behavior. “One of the central tenets of economics is that people want certain things and will change their behavior to get those things – in other words, people will respond to incentives.”
Applying this to the FED’s policies, and ramifications, should then yield logical connections between the results of the FED’s policies, and their intentions in implementing them, then, right?
Stated differently, the FED intends the consequences of their actions, correct?
If the consequences are unintended, then, it means that the FED’s actions were lacking intellectual rigor, meaning they stupidly did not consider the outcome before acting. Or, nefariously, instead, the FED’s claim that the consequences were not intended is but a lie, as the reality is that the FED intended that which occurred all along.
The global political/economic state feels precarious for a good reason: it is precarious.
That the global economy is in a precarious state seems self-evident.Take your pick of the systemic risks: debt bubble and slowdown in China, banking/political crisis in Europe, negative interest rates and stagnation in Japan, ongoing meltdown in emerging markets and currencies, oil prices that threaten mayhem if they go up and if they go down, and a downturn in global trade that is usually associated with recession.
Gold Is Back! Gold is back! With the strongest quarterly performance in 30 years, the precious metal in Q1 2016 emerged from the bear market that had been in force since 2013. A decisive factor in this comeback is growing uncertainty over the recovery of the post-Lehman economy. After years of administering high doses of monetary painkillers, will the Fed succeed in discontinuing the practice? Or is the entire therapy about to be fundamentally challenged?
The following chart illustrates that there has been a divergence between money supply growth and the gold price trend since 2011. It shows the combined balance sheet totals of the Fed, ECB, SNB, PBoC and the Bank of Japan. When the supply of fiat currencies grows faster than the stock of bullion, the gold price should rise and vice versa.
On Friday, gold made the most of a weaker US dollar and expectations of an extended period of ultra-loose monetary policy and negative interest rates around the globe, jumping to a two-week high.
Gold futures in New York for delivery in December, the most active contract, added 1% to a midday high of $1,357.90 Gold hit a near two-year high earlier in July and year to date the metal has gained 28% or just shy of $300 an ounce.
Rising real interest rates raises the opportunity costs of holding gold because the metal provides no yield and therefore the price should decline. Higher rates also boost the value of the dollar which usually move in the opposite direction of the gold price.
If you think a delusional market is healthy, it's time for a psychiatric exam.
What diagnosis would an experienced psychiatrist offer when presented with the bizarre behavior of the U.S. stock market? We assume that the wild mood swings of greed and fear are "normal" for markets devoted to short-term profit and speculation, but the stock market's disconnect from reality is far beyond mere mood swings. The stock market thinks it's solidly on pavement, but in reality it's like a car flying off a cliff: the Wiley E. Coyote moment is just ahead. There's nothing but air beneath the stock market.
The world being what it is, we sometimes have to choose between two less than desirable options. The problem with choosing the lesser of two evils that are distasteful enough is that one has to numb their conscience to do it. This is what is known as a 'Faustian bargain.' We may lie to others and especially ourselves about it, but there it is.
But the individual will find that if they choose to make this kind of rotten deal with their own conscience enough times, and put their inner voice aside to make an expedient, practical choice rather than a moral one, and pile lie upon lie to ease the pain of their betrayal, eventually their conscience will fail them when it matters the most. Or they may simply find themselves too compromised to do anything but overtly choose what is objectively wrong or suffer serious personal consequences. They have intertwined their fingers with the power of darkness so deeply that now they are his.
And this is how the banal, time serving functionaries familiarize themselves into eventually doing otherwise unthinkable, and sometimes monstrous things.
The road to hell is paved, not with one climactic choice, but a long series of increasingly bad choices and lies, that eventually grow into a complete betrayal of duty, and our honour, and our sacred oaths of service.
There are already over US$13 trillion of bonds trading at prices so high that they offer a negative return to investors. But now there’s talk that something even more mind bending could be just around the corner. The latest idea in the bond market would create a virtual black hole for money – ripping investment capital to shreds and leaving nothing in its wake. This week I’m in south east England, staying with my parents in the house where I grew up. They bought the place in summer 1963, when mortgages were rare and houses were still affordable. I joined them, and my three sisters, in 1972. ...
While everyone was talking about Brexit last month, the Bank for International Settlements released its 86th annual report.
Based in Basel, Switzerland, the BIS functions as a master hub for all the world’s central banks. It settles transactions among central banks and other international organizations. It doesn’t serve private individuals, businesses, or national governments.
Because it is relatively free from political considerations, the BIS can speak about economic issues more directly than its member central banks can. And its candor has grown steadily in recent years.
I've said it before, debt is slavery and it is now the currency of the world. That's why gold and silver have become so important around the globe.
And there you have our future, visible in the 13th, 16th and 18th century price-revolution waves which preceded ours. That we have entered an era of rising instability and uncertainty is self-evident.There will always be areas of instability in any era, but instability and uncertainty are now the norm globally. There is a template for global instability, one that has been repeated throughout history. Historian David Hackett Fischer described the dynamics that generate periods of rising instability in his book The Great Wave: Price Revolutions and the Rhythm of History (sent to me a number of years ago by correspondent Cheryl A.)
In Fischer's well-documented view, there is a grand cycle of prices and wages which turn on the simple but profound law of supply and demand; all else is detail.
Creating "free money" to support bloated bureaucracies and corrupt cartels only makes the underlying problems worse. The mere mention of helicopter money has intoxicated global stock markets, which have soared on the rumor of Japanese helicopter money. But as I explained in Why Helicopter Money Won't Push Stocks Higher, central banks funding fiscal spending (i.e. helicopter money) will only have a weak and entirely indirect effect on profits or stock market valuations.
The problem with helicopter money is that it cannot fix what's broken in the economy--and even worse, it perpetuates every inefficient, corrupt, bloated and unsustainable system in the status quo. As I explain in my book Why Our Status Quo Failed and Is Beyond Reform, the problem isn't lack of fiscal spending or stimulus; the problem is the primary systems of the status quo have failed and cannot be fixed with central bank easy money. In effect, helicopter money feeds the perverse incentives that have crippled our economy and society.
On the silver chart, is a classical major reversal pattern referred to as a Head and Shoulders Bottom. Major reversal patterns form after a downtrend, and its formation normally confirms a change in trend. Below, is a silver chart (all charts from tradingview.com), with the pattern highlighted:
The existence of this pattern, and its recent breakout confirm that the December 2015 bottom in silver is actually the bottom for the correction since 2011. This is a precious gift, if you were still unsure whether to get into silver or not. This was also confirmed by the fact that the USD/ZAR made a significant top very close to the December 2015 silver bottom USD/ZAR (a USD/ZAR top is a good signal to confirm a silver bottom).
Gold has consolidated its post-Brexit gains this month and continues to be the best-performing commodity so far this year, filling the pockets of most producers of the precious metal, a new study shows.
According to SNL Metals & Mining, gold-focused companies have climbed the most in the ranking of the world’s top 25 mining companies by market capitalization from April to June this year, helped by rising gold prices, declining mining costs and, most recently, global economic uncertainty as a result of the UK’s decision to leave the European Union in June.
(Kitco News) - The pervasive bullish sentiment towards gold continues as prices maintain solid gains and has one Wall Streeter saying the secular bull market is back in full force.
“After rallying for 12 straight years and peaking in September 2011 at around $1,900 per troy ounce, gold fell into a very lengthy bear market that I believe ended in December 2015 at $1,050,” said Peter Boockvar, the chief market analyst for the Lindsey Group, in a CNBC post Thursday.
Given current central banking policies that are pushing other fiat currencies down, he continued, gold and silver will rally further as they will be the “last currencies standing.”
There are many people who allege that, because gold does not pay interest or dividends, it cannot be accurately valued, like a stock or bond. That is not true. It is actually easier to calculate the fair market dollar value of gold than to value any other asset. We simply need to step back in time in order to find our answer, and then employ some math.
The Bretton Woods Agreement was signed in July 1944, when the world was on a quasi-gold standard. The United States of America had accumulated a vast majority of the government-owned yellow metal during World War II. Because no other nation had much gold, it was decided that America’s gold reserve would be indirectly used by all nations.
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