Wall Street’s and the media’s attention was riveted single-mindedly on whether or not the Fed would include in its statement the two words, “considerable time,” the two vaguest, stretchable latex words available that describe absolutely nothing and leave the door wide open for wishful thinkers of every stripe. That’s what the Fed’s gyrations since the financial crisis have so successfully accomplished; they have reduced the market, a place of price discovery, to a crummy joke.
The Fed delivered those two words, but during the press conference, Fed Chair Janet Yellen doused them with so many qualifiers that they’ve become even more meaningless, if that were even possible.
Wishful thinkers still see Yellen as a pure dove, while others worry that she has turned into a closet hawk who is afraid of letting this tsunami of free liquidity ...
SHANGHAI, Sept. 18 (Xinhua) — Foreigners now have access to China’s gold market after the Shanghai Gold Exchange (SGE) launched its international board on Thursday.
The yuan-denominated board was opened in the China (Shanghai) Pilot Free Trade Zone (FTZ), a move to encourage foreign participation in China’s tightly controlled gold market.
The launch will mark the first time China has allowed foreign investors to participate in the country’s gold trade.
Despite being the world’s largest producer and consumer of the precious metal, China has little say over the pricing of gold in the global market. Authorities hope to gain greater influence over pricing by granting global investors access ...
I promised yesterday to answer the question "why?" is it that silver and gold are manipulated. Some people say "who cares?". Some don't believe it while others don't even have clue that it's happening. "Gold bugs" for the most part are angry but I sense they are angry for the wrong reasons. Many understand fiat money to be freely printable and without any real value but they are angry because "gold went down" or didn't "go to da' moon" yet. They should be "rich" by now ...the flaw of course to this thought process is counting your wealth in dollars and wanting to, hoping for and planning to "sell" which leaves you back again with DOLLARS. My point to this paragraph is to show you how well the "why" gold and silver manipulation have worked so well! Even many hard asset advocates still deep down "want" more dollars which is why they want their holdings to "go up".
OK, so why has it been imperative to suppress gold and in particular silver prices? Let me first say I will consider gold and silver to be the same for this exercise even though they are not ...
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 August 2014. India's Gold Bar imports surged 16% during August '14: GJEPC
The world's second biggest bullion consuming nation India's gold imports advanced significantly by 176% year-over-year during August, said HSBC, citing government's trade data. Indian Gold Imports are likely to pick up even further ahead of festival season
China may join other emerging countries in boosting gold reserves as the precious metal makes up a smaller share of its foreign-exchange holdings compared with developed economies, said a London-based researcher.
The country hasn't announced any changes to state gold reserves since authorities in 2009 said holdings totaled 1,054.1 metric tons. While China holds the world's biggest foreign-exchange reserves, bullion accounts for 1.1 percent of the total, compared with about 70 percent for the U.S. and Germany, the biggest gold holders, World Gold Council data show. ...
In ancient Roman religion and myth, Janus is the god of transitions--beginnings and endings of conflict, war and peace, journeys, trades and eras. Janus has two faces, as befits a god that looks both to the future and to the past.
In our era of omnipotent central banks worshipped by the Status Quo, we have a goddess of financial transitions--Janus Yellen, the two-faced chair/deity of the Federal Reserve--to usher in the Great Transition from risk-on to risk-off. What is risk-on? ...
Yuanification continues around the world. As The USA attempts to corral its allies in a 'broad coalition', an increasing number of people - including domestic economic policy advisors - are shifting away from the USD as primary reserve currency. However, the move by British Chancellor of the Exchequer George Osborne, announced Friday, is likely the most notable yet in the world's de-dollarization. As Xinhua reports, the British government intend to be the first nation (ex-China) to issue Renminbi denominated bond and to use the proceeds to finance the government's reserves of foreign currency. Osborne described this dialogue outcome as "a historic moment" and a statement of British confidence in the potential of the RMB to become "the main global reserves currency".
The precious metals have been under the most intense and concentrated period of downward price manipulation by the Federal Reserve/U.S. Government that has occurred over the last 14 years, except for the summer/early fall 2008. Something really bad is occurring behind the scenes with our economic and financial system that is not yet obvious. But I have a feeling we’ll soon find out.
Some of the clues include the obvious lies and information misdirection coming from Grandma Yellen, Wall Street and the White House. Yesterday’s FOMC announcement/Yellen press conference was one of the most absurdly Orwellian events I have ever witnessed. ...
QUESTION: Mr Armstrong, How can you say the metals are not manipulated? It is you and your people who keep shorting gold to prevent a rally.
ANSWER: The people who say that is what I say are those manipulating you. They are biased and will go down with the ship because they are married to one market and cannot see the truth if you slap them in the face. There is NOTHING that can be manipulated on a systemic basis every day. If that were true, no empire would fail, communism would have succeeded, there would be no recession since the G20 manipulates the economy, QE1-3 would not exist for the Fed could manipulate long-term rates rather than try to “influence”, and then if you really paid attention, I have stated the “club” manipulates markets for a quick buck ...
Click through for m rest. Armstrong's view on gold manipulation.
China Gold International Resources Corp., a gold and copper producer with mines in Inner Mongolia and Tibet, will probably make an acquisition by the end of next year, according to one of its senior executives.
Looking at all avenues to getting the physical stuff.
We are doomed as a country. Everything coming out of government now is a lie.-Lou The U.S. National Debt Has Grown By More Than A Trillion Dollars In The Last 12 Months By Michael Snyder, on September 14th, 2014 The idea that the Obama administration has the budget deficit under control is a complete …
Debt will be the driver of gold's price. Particularly when those debts must be paid.
It will be a busy week for financial and gold markets and there are three events in particular that can shape the larger investment climate, said Brown Brothers Harriman. What are the key events that can influence Gold this week?
Richard Russell writes on King World News: “I've been thinking, the people at the Fed may be deceivers and even liars, but they are not stupid. They know that the current system depends on constant, never-ending growth. But they also know that “no tree grows to the sky.” So what are they really thinking? The people at the Fed realize that they have good jobs and that they have prestige.
They also know that they will continue their Keynesian policies for as long as they are employed by the Fed. And then when the system breaks down, which it must some day, they will be retired and the next Fed employees will take over. So enjoy it while it lasts and let the next guy deal with the ugly consequences. The Fed members may be deceitful and given to lies -- but they are not stupid.
I guess the worst offender was Alan Greenspan, who while younger wrote ...
Click through for the rest. I always enjoy reading his perspective. A man who has seen a lot.
While Janet Yellen and her band of money printers work themselves into a tizzy over whether two buzz words—-“considerable time”—– should be dropped from their post-meeting word cloud, they might be better advised to just read the newspapers. This morning’s WSJ brings word that the lending boom which our monetary central planners are eager to stimulate is apparently off-to-the-races.
Well, sort of. The item in question is a $122 billion globally syndicated loan to facilitate an M&A deal between the world’s two largest beer companies—AB InBev with a 20% global market share and SABMiller with 10%. Needless to say, the only possible reason for creating a monstrosity with $60 billion in sales spread among scores of highly differentiated regional and national beer markets is the “synergy” euphemism—-that is, the “savings” from thousands of job terminations especially in those two paragons of job growth known as North America and Europe.
So the purpose is self-evidently the opposite of the Fed’s intent—whether the sweeping job cuts which Wall Street will peddle to justify the deal actually happen or not. In any event, the deal has virtually ...
(Kitco News) - A two-day Federal Open Market Committee meeting ends Wednesday and economists said they are expecting the Federal Reserve will announce some sort of change on forward guidance as it prepares to end its asset-purchase program. Economists said the Fed will likely announce another $10 billion reduction in its [...]
Since Nixon closed the gold window in 1971, gold has made an impressive move upward from its fixed price of $32 an ounce, to where it sits now around $1,250. But few seem to grasp what actually causes gold to move higher. An increase in the gold prices occurs when the market becomes convinced that a currency will lose its purchasing power due to central bank-induced money supply growth and real interest rates that have been forced into negative territory. And nothing convinces a market more of a rising gold price than when debt and deficits explode.
But while the parabolic move higher in gold from 2009 to 2011 did contain a period of low nominal interest rates, real rates did not fall. And, the surging gold price was not accompanied by a growing money supply either. In fact, the growth rate of M3 plummeted during 2009 thru 2010-it wasn't until 2011 that the money supply rebounded. So what would explain the steady move in gold from $800 to $1,900 per ounce during that time period? The gold price simply got ahead of itself because the market feared that out of control deficits would force the Federal Reserve into an unending cycle of debt monetization, which would engender a protracted period of negative real interest rates, booming money supply growth and inflation.
However, those fears were temporarily ameliorated by the reduction of Federal Budget deficits starting in 2011. This is because the Fed was, ironically, able to temporarily re-engineer asset bubbles, while sending borrowing costs lower, causing revenues to increase and expenditures to decrease. Annual deficits fell from $1.3 trillion in 2011, to $500 billion today. Adding to the gold market's recent woes is the specious belief held by U.S. dollar bulls that the Fed will be aggressively raising interest rates while the rest of the world is cutting rates. This is the explanation to why gold and gold mining shares have suffered mightily during the past three years. ...