This is not the same market that we dealt with a year ago. That was a market that lived on buys and sells of the public. Today's market is run by the hedge funds. This morning my old broker from E.F. Hutton came over to talk to me. He told me that the quickest way to lose a customer is to keep them out of a rising market. The public will stomach a loss, but will not forgive you if you keep them out of an advancing market.
That applies to today's action. Hedge funds and money managers must be in this market; they cannot afford to be out. The money managers ignore bad news and above all they remain in the market. As a result, the stock market continues to rise regardless of the Ukraine, Gaza, or any other negative news. The question is, how high will the tree grow? ...
"Are there any significant discrepancies between the numbers in the GLD trade settlement spreadsheet and the GLD bar list?"
Here are the two documents we're talking about:
GLD Trade Settlement Spreadsheet (CSV): This document contains information about the funds Net Asset Value, and has records going back to the start of the fund in 2004. http://www.spdrgoldshares.com/usa/historical-data/ (direct link) "This file is updated between 6.00 a.m. and 6.30 a.m NYT the following day after trading." For the record - although the spreadsheet gets updated every day, the inventory number may not necessarily change. This document is also the source for @BurningFiat's inventory tweets. ...
As the curtain rose on the economic stage, it revealed politicians and central bankers hand-in-hand, ready to act out a farce.
A June 23rd article in Bloomberg constituted the first review. It opened, “Germany has decided its gold is safe in American hands.” The gold in question is the massive German reserve that is allegedly stored at the Federal Reserve Bank of New York (NY Fed). On January 16, 2013 Germany’s central bank, the Bundesbank – or BuBa to its critics -- announced an intention to repatriate a sizable portion of its gold from the NY Fed by 2020. But, now, the government's budget spokesman Norbert Barthle declared, “The Americans are taking good care of our gold. Objectively, there’s absolutely no reason for mistrust.”
Objectively, there's no reason for trust. The repatriation was requested precisely because popular opposition leaders areconvinced the NY vaults are either deficient or empty. The German people agree with the opposition and they loudly demanded to see the proof. Moreover, the German government itself has displayed a deep distrust of America. For example, Germany recently declined to renew its contract with the telecom giant Verizon. Tobias Plate, a spokesman for the German Interior Ministry, explained, "There are indications that Verizon is legally required to provide certain things to the NSA." Specifically, the government suspects Verizon will monitor the communications of top officials in the same manner that Chancellor Angela Merkel was “intercepted” by the NSA. ...
Click through for the rest of the article. Good read.
New rules cap deposits for gold retailers, and limit interest rates.
Author: Shivom Seth Posted: Monday , 28 Jul 2014
MUMBAI (MINEWEB) -
An anxious Manisha Kamble, 34-year-old housewife from a Mumbai suburb, has been given a notice by her jeweller: encash the regular installments of money she had deposited at the retailer and buy gold jewellery.
Like Manisha, others who have been depositing small sums of money every month (like a recurring deposit) to make an annual purchase of gold jewellery have been left high and dry, after a recent move by the banking regulator to bring gold installment schemes under the ambit of public deposits. ...
July 27 (King World News) - Forget The Propaganda, This Is What’s really Happening
Baseball great Yogi Berra had a saying “It's déjà vu all over again,” and every year around this time, I am reminded of those words. As we have once again happened upon that magical time of year I call, recovery summer déjà vu. It’s the time of year when Wall Street and Washington apologists trot out their dog and pony narrative, in an attempt to spin the actual data, proving we have finally embarked on the summer that will launch sustainable economic growth....
Yesterday, Gold prices drifted lower on news that Chinese gold demand fell 19% over the first half of this year. Silver prices followed as some investors question whether or not the gold and silver bull markets are still intact. Perhaps it is time to reflect on the purpose of diversifying a portfolio with precious metals.
Historically, gold and silver have been used as a means to store wealth and to protect against unforeseeable financial disaster. In pre-currency times, if crops failed, a store of gold and silver allowed a farmer to purchase what they could not grow or produce themselves. In our modern economy, precious metals have also assumed the role of inflation hedge. As the purchasing power of paper money falls, gold and silver help to preserve that power.
Indeed, smart investors agree that a diversified portfolio is necessary to protect against potential disaster. To a person, I think smart investors would also agree that the best time to take a defensive position is before the disaster strikes when economic times are good or, at least appear to be. If you wait for the disaster to invest, you will either miss out entirely or the protection you seek will be unaffordable. ...
California Lawyer rights on the housing lending practices which helped to put the economy on the skids:
Understand that no economic "recovery" can EVER occur until all of this bad debt is expunged from the system. Until this massive debt is wiped clean, the debtors will either struggle along in debt service, which means NO consumption at the Walmart, thus depriving the economy of vital money velocity and all that it entails, or they will default thus requiring write-downs, and reduction of value of QUADRILLIONS of derivative financial products that are, essentially, worthless. ...
Click through for the full article. It's a good read.
Today KWN is featuring an interview with multi-billionaire Hugo Salinas Price where he told King World News in stunning detail what he believes to be the frightening plan to “control the world” going forward. He described this as a “very disturbing fact that is facing humanity.” Here is how he detailed the horrifying situation in May of 2012: “Eric, the problems we are seeing in the West are not going to be resolved in any positive way. What we have had in the West, in recent decades, has been the welfare state. The welfare state is, in my view, what I would call, ‘socialism light.’ We’ve had ‘socialism light’ and now we’re going to transition to full-blown socialism.”
“This could not be paid for out of taxes -- it had to be financed. This is what has caused the explosion of debt in the West. The people who are in power, the elite, do not want to relinquish their power. They plan to retain it under full-blown socialism for the populations of the West....
What's the difference between the U.S. Congress and corrupt petty officials taking bribes at a Third-World border crossing? Only one of scale.
Corruption ceases to be corruption when it becomes the Status Quo; what was once recognized as corruption is seen as just another cost of doing business. Our political order is structurally corrupt: the key dynamic in every level of governance is favoritism and extortion.
Favors must be bought: those foolish enough not to spend freely on lobbyists and campaign contributions find their competitors have gained the upper hand by buying favors such as tax breaks, federal subsidies, no-bid contracts, cost-plus contracts, backroom deals, regulations that exclude competition and so on.
Politicos must extort campaign contributions from the maximum number of supplicants seeking favors to maintain their perquisites and power.
Pento: “Inflation is a persistent and pervasive fall in the purchasing power of paper money. It is not too many people working and producing or being productive. That is why I believe the Fed is going to be behind the inflation curve for years to come....
Silver prices have increased but in a disorderly manner. Rather than focus on details, examine the big picture - 43 years of monthly price data in one chart - and divide that 43 year period into four "megaphone" shaped patterns on a ...
Before you buy another ticket for the Bull market bandwagon of "don't fight the Fed," perhaps you should take a look at the quality of the debt the Fed has enabled and the diminishing returns on all that debt.
The mainstream media is delighted to highlight positive economic data, but nobody ever asks about the quality of the borrowers who are behind the rosy numbers. Behind the rosy numbers, sales and profits are increasingly dependent on marginal buyers and borrowers: those buying on credit who would not qualify to borrow money in a system ruled by prudent risk-management.
These marginal borrower/buyers are last on, first off: they qualify for loans at the end of a credit expansion, when lenders throw caution to the winds to reap the profits from issuing new mortgages, auto loans, student loans, credit cards, etc. to marginal borrowers.
These marginal borrowers are the first to default, ...
New guest Erik Townsend is a successful software entrepreneur who is now a hedge fund manager. Eric discusses his short-term and long-term outlook for Gold as well as the factors driving current and future trends. Follow Erik’s work at his website.
The three banks have been accused of fixing the price of trillions of dollars worth of silver.
by Cecilia Jamasmie:
The Bank of Nova Scotia, Deutsche Bank and HSBC have been accused of fixing the price of trillions of dollars worth of silver, an allegation similar to earlier suits involving the London gold fix.
In a court case filed in New York's southern district Monday, investor J. Scott Nicholson filed suit against the three banks for allegedly manipulating the price of silver and in the process, making money at the expense of smaller players. ...
HOUSTON – We have just two stops to make on today’s rabbit trail, but both of them “count” and both are pretty dang important. Today we will be looking at what some are calling a “too-high, too fast” net long position in silver by Managed Money traders and then we will cover an aspect of the huge, record high short position in silver futures held by the mercenary Swap Dealers, and it’s a “keeper.” So, with no further preamble, let’s take the lesser of the two first and move on from there.
I am Shocked! Shocked that Managed Money Traders are So Net Long! Have you noticed some...
The move away from the dollar is now in full force with the BRICs announcing their own version of the World Bank and International Monetary Fund. It remains to be seen how far away from the dollar world commerce can stray, but the desire and motive to challenge the dominance of the dollar is clear. It has also been reported that the large central bank purchases of gold might be part of the strategy for anchoring the finances of this new entity. It can only be good for gold as well as a clear indication that the reserve status of the dollar is at risk.
Last week showed little change in most asset classes. However, there was a sudden spike at ...
Gold fund manager Egon von Greyerz, interviewed today by King World News, notes that gold deposit discoveries have collapsed and that the time required for turning a deposit into a mine has lengthened. Von Greyerz argues that this foretells much higher gold prices.
Not necessarily. For new deposits of paper are being found all the time -- it's a renewable resource -- and there always will be an infinite supply of electrons and numbers for use in assembling bank and investment house balance statements. ...
Like all addicts, Central Planners are confident they can manage the monkey on their back. But this is a self-serving illusion.
Addiction is many things, but beneath its complexities it is a self-destructive expression of the desire to avoid or suppress pain. The pain might be physical or the stuff of the mind, memories or inner demons or tortured misgivings about one's choices, soul and life.
Though the self-destructive aspects of the addiction are painfully visible to observers, to the addict they represent a solution: perhaps not the ideal one or even a good one, but a solution nonetheless.
Fear plays a big part in many addictions--fear of life without the addictive salve. The ...
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With the war in the gold and silver markets heating up, today gold analyst Frank K. out of the Netherlands sent King World News two shocking charts which reveal the massive flow of gold from West to East. The charts show gold is literally hemorrhaging from Western central bank vaults to Eastern vaults, where it will never return.
Here is what Frank K. had to say along with his 2 key charts: According to the latest figures by the Swiss Customs Administration, the country has exported a total of more than 600 tons of gold to Asia in the first half of this year....
With less than 6 months to go until the end of the year, with various gold ETFs suddenly seeing the biggest buying in years, and with gold continuing to outperform most asset classes YTD, what is Goldman to do? Why follow the trend of course, and just like David Kostin had no choice but to boost his S&P 500 price target using the idiotic Fed model as a basis, so earlier today Goldman just upgraded its gold price target from $1,066 to $1,200. Probably this means that after accumulating it for the first half of the year, Goldman is finally preparing to sell the precious metal. Not so fast: because while Goldman did just raised its price target, it continues to have a Conviction Sell rating on Gold, which is its second most hated commodity after iron ore. Go figure.
Nanomotors are an amazing feat of engineering: tiny gold rods less than a micrometer long, powered by ultrasonic waves to spin at crazy-fast speeds. How fast? Scientists just figured out a way to measure, and it's astonishing: 150,000 RPM, ten times faster than the fastest race car engine.
Just as the Federal Reserve cannot directly force you to stick the needle of monetary heroin (debt) into your arm, it also can't force employers to pay employees more.
The official policy of the Central Bank (Federal Reserve)/government is: inflation is necessary for "growth," i.e. economic expansion. The unstated reason for this official support of inflation is that it's easier for borrowers to service their debts as their income inflates.
To take an extreme example: let's say a homeowner has a mortgage of $100,000, an annual wage of $40,000 and annual mortgage payments of $10,000. At 100% annual inflation in both prices and wages, the home mortgage remains fixed at $100,000, the payment remains fixed at $10,000 but his earnings double to $80,000.
Where the mortgage payment initially took 25% of his earnings, now it ...