Gold and What Moves it.
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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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Gold Premiums in India Jump as Central Bank Curbs May Cut Supply

Gold premiums in India, the world’s biggest buyer, more than doubled on speculation that government restrictions on bullion imports by banks to rein in a record current-account deficit would reduce supplies.

 

The fees jewelers pay dealers for bars jumped as high as $40 an ounce today from $17 to $18 yesterday, Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation, said by phone from Kolkata. The Reserve Bank of India on May 13 limited imports by banks on a consignment basis to only those required to meet the genuine needs of exporters.

 

The biggest slump in prices in three decades last month led to shoppers crowding retail outlets across India to buy jewelry and coins, deepening concern that the nation’s current-account deficit, the broadest measure of trade, would widen from an all-time high. The rush to buy bullion caused a shortage of physical supplies, prompting importers to charge a hefty premium overLondon prices, according to Bamalwa.

 

“Banks have refused to deliver any gold except ordered previously, and bullion dealers are not accepting fresh orders,” Bamalwa said. “Whether the bankers and dealers will find another route to import and how they will go about it, it is very unclear.” Any impact from ...

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Mining CEO John Smith: "This Is A Time That People Want To Acquire...To Both Buy and Build" | Bull Market Thinking

Mining CEO John Smith: "This Is A Time That People Want To Acquire...To Both Buy and Build" | Bull Market Thinking | Gold and What Moves it. | Scoop.it

I had the chance to connect recently with John Smith, President and CEO of Silver Standard Resources (see disclosure). It was an interesting conversation, as John has been in the resource industry for 30 years, with nearly 20 of those spent developing mines at BHP Billiton.

During the interview,

 

John indicated that as the world’s major mining companies are slashing capital expenditure and exploration budgets, mining costs are slowly turning around. He also spoke to the stabilizing political environment in Argentina for miners, as well as commenting on the “paper to physical” dynamic he sees in both precious metals and energy.

 

When asked if this is a good time to be developing new mines, John explained that, “If you look at the majors; the BHP Billiton’s, the Rio Tinto’s, and the Xstrata’s, you can see there’s a lot of companies pulling back now on building mines. [That] does a couple of things. First…for the market and suppliers [of] major processing equipment and mobile fleets…you tend to see the delivery schedules getting much shorter…and [there isn't] so much heat in the prices, [because] there’s not [as] much competition for that equipment.  ...

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Trader Dan's Market Views: Gold Range Bound; Drifting Lower

Trader Dan's Market Views: Gold Range Bound; Drifting Lower | Gold and What Moves it. | Scoop.it

Gold continues with its lackluster performance of late since failing to extend its bounce past overhead resistance between $1475 - $1485.

With equity markets continuing to head vertically north, hedge funds are not interested in safe havens of any nature, be that gold or Treasuries. For that matter, they are not the least bit interested in mining equities either.

Sentiment towards gold among the Western investing community is horrible. It is strong Asian demand which is keeping this market supported. Had it not been for that, gold would never have managed to climb as high off that recent crash lower as it did. ...

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Free Gold - The End Game Now In Process :: Jim Sinclair's Mineset

Free Gold - The End Game Now In Process :: Jim Sinclair's Mineset | Gold and What Moves it. | Scoop.it

As the premium on physical gold remains above the cash spot futures contract including shipping and insurance to destination, the demise of paper gold is certain. The emancipation of physical gold from fraudulent paper gold is in process right now.


Emancipating physical gold is freeing gold. Free gold is the final product of this transition. Forget argumentation as the phoneme in process has its foundation in granite. This process is taking place in the world markets, today, right now!

 

It is an undeniable fact and shock to the paper trader as they manipulated the paper price of gold sharply lower kick starting this major monetary shift.

 

These paper traders have initiated the transition to Free Gold. The paper gold traders have fashioned their own economic demise. For the COMEX that is what would be expected.

 

I do not hold too many of the tangential and political thoughts of Free Gold. Those are products of its new adherents. As a movement gains followers they usually destroy the truth, the teacher, or both.


Freegold – Preferable to a gold standard? 


Author FOFOA

When people bring up going back to a gold standard, many – including the hard money advocates – want to return to a gold standard because of the disciplinary function of gold within the monetary system. Physical gold has proven a very good instrument against government debasement in the monetary system. However, what the gold standard advocates overlook, is the actual effectiveness of the gold as money, and the way to get to a gold standard. ...

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Peak collateral – a strange attraction

Peak collateral – a strange attraction | Gold and What Moves it. | Scoop.it
Author of THE DEBT GENERATION

 

... Collateral is getting scarce. What truly is safe, has long ago been pledged mainly to the central banks. The rest has been ring-fenced into covered bonds and other super-safe investments. None of it also pledged elsewhere or re-hypothecated onwards to prop up other loans – honest! Even the central banks have had to relax and further relax their rules about what they  will accept as safe enough to act as collateral for a central bank loan. Once it was genuinely AAA rated assets. Now if you have a beach towel from a Club Med holiday you once took, it’ll do.

 

Once we had fiat money. Today we have super fiat. ultra fiat and super ultra zero-content fiat.

 

Why do you think China is buying more and more gold? I wonder if China isn’t preparing for a contingency of a currency implosion and is making sure it has the necessary gold reserves to market the Yuan as the only ‘gold’ backed global currency.  Just a thought. ...

Hal's insight:

It's a longish article but full of interesting thoughts. I've snippet the one that popped for me.

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Harvey Organ's - #Gold imports into India jump 138% or 166 tonnes

Again, at the Comex,  gold is departing as investors are frightened to death of a confiscation similar to what happened at MFGlobal or Refco. Tonight, the Comex registered or dealer gold rests at 1.836 million oz or 57.10 tonnes.  The total of all gold at the comex fell below the 8 million oz at 248.77 tonnes 

The GLD  for a change reported so far no change in inventory.
The SLV inventory of silver remained constant. 

In other physical news, we got a whopper demand for gold (physical) from Dubai.
They reported in the past two weeks alone a massive 50 tonnes of gold was demanded.  In India last month, 166 tonnes were imported. Remember that the world produces around 183 tonnes per month.  China is importing greater than 200 tonnes into its country. ...

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Chris Martenson: Official Gold Numbers Don't Add Up | Casey Research

Chris Martenson: Official Gold Numbers Don't Add Up | Casey Research | Gold and What Moves it. | Scoop.it
Exactly How Much Gold Do We Have?

There's growing concern that a lot of official gold has been leased out into the market and that sooner or later, as happened back in the late 1990s, one or more parties, perhaps bullion banks or a metals exchange, would run into difficulty trying to meet a physical gold delivery commitment.

 

For a short video on the mechanics of gold leasing, click here.

If a lot of gold has been leased out, someday it will have to be rebought, and difficulties may emerge if the gold cannot be rebought in sufficient quantities without creating mayhem within the financial system by causing a very large hike in the price of gold.


Important: The amounts of gold leased by central banks is a very closely guarded secret, and we do not have direct information on them, which means we have to try and back-calculate these amounts by other means. ...

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Why Peter Grandich Is Still Telling His Wife Gold Will Hit $2,000/oz

Why Peter Grandich Is Still Telling His Wife Gold Will Hit $2,000/oz | Gold and What Moves it. | Scoop.it

Many junior mining investors have run off with their tails between their legs. And who can blame them when even the portfolios of market veterans like Peter Grandich, publisher and editor of The Grandich Letter, have taken a beating? But before you cash in, you might want to read why Grandich still has hope for $2,000/oz gold, and which companies he believes have the mojo to make it through this trough in this interview with The Gold Report.


The Gold Report: Peter, the last time we talked you said that the success of your marriage was resting on the performance of your junior resource equity portfolio. You are still married, so is your portfolio performing or is your wife an extremely patient woman?

 

Peter Grandich: Living in the doghouse isn't that bad once you get used to it. It's wise during this horrific bear market not to let your wife see your monthly brokerage statements.


TGR: A reader of yours apparently suggested that you should have a "kennel portfolio" for some of your dog stocks.


PG: And that was one of the kinder comments that came in recently. I would be better off running a kennel than speaking about my junior resource clients.


TGR: Tell us about what has happened and what you're expecting for your portfolio.


PG: This has been the worst junior resource market in the 30 years that I've been on Wall Street. It may not be the largest percentage decline, but at least there were legitimate reasons for ...


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Trader Dan's Market Views: Quick Overview of Gold

Trader Dan's Market Views: Quick Overview of Gold | Gold and What Moves it. | Scoop.it

Gold has had a nice bounce off the 1320 level due to robust demand for the actual metal, especially out of Asia. The problem for the metal here in the West is that speculators, most notably hedge funds, are eager sellers of the metal with many pressing it from the short side while others have yanked their money out of the metal to shove it into stocks so as not to miss the rocket blast higher and have to deal with unhappy clients.

I have been concerned that physical demand for the metal will wane as the price moves higher with those who are intent on acquiring the metal waiting, hoping, for a chance to buy it down below $1400 again. Whether they get the chance to do that remains unclear at this point. 

I would like to note that the metal has now completed a sizeable ...

Hal's insight:

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With free money, why would anyone work in America?

Wasting American Tax Dollars - This is how our hard earned tax dollars are being wasted. Benefits should be about the absolute necessities. Not letting these...
Hal's insight:

Hat tip to http://thefinancialphysician.com/2013/05/free-money-obamas-america/?utm_source=feedly

 

 

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The Golden Truth: The B.S. Is Flying At Us Everyday Now

The Golden Truth: The B.S. Is Flying At Us Everyday Now | Gold and What Moves it. | Scoop.it

Two more Government propaganda agencies released extremely misleading data this morning.

First, the Census Bureau released its estimate for April retail sales.  The headlines flashed in big bright lights that retail sales increased a "seasonally adjusted" .1% over March.  The March number was originally reported at -.4% but was revised lower to -.5% - or down from February.

Now here's the interesting part:  if you go by the not seasonally adjusted estimated number, sales for April actually declined from March by 2.5%.  That's quite a bit different from the fabled headlines everyone will see or hear today.  Here's the data:  LINK  And a negative reading is more consistent with the wholesale sales number released last Thursday by the Commerce Department, which showed that wholesale sales posted their biggest drop in four years:  LINK

You would at least think that if the Government was going to paint a big lie, they could at least get their various statistical departments to cooperate with each other so that the lies are consistent across the data.

An even bigger joke is that Bloomberg News reported today that Wall Street dealers are now forecasting that the U.S. Treasury will reduce the size of upcoming Government Treasury auctions due to "soaring revenue" and based on the CBO's recent estimate that the Government will run only an $845 billion deficit for fiscal 2013. 

Now, part of the problem with this idea is that for the first 7 months of FY 2013, the Federal debt load has gone up by ...

Hal's insight:

Click over for the rest. I don't know about you but I think we should all be investing in hip waders as well.

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Bullion traders seem to have taken seriously the finance ministry’s efforts to discourage gold consumption

Bullion traders seem to have taken seriously the finance ministry’s efforts to discourage gold consumption | Gold and What Moves it. | Scoop.it

Bullion traders seem to have taken seriously the finance ministry’s efforts to discourage gold consumption as it was putting pressure on the current account deficit. If not investments, at least trading in bullion has shrunk in the last couple of months.

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FULL SPECTRUM BANKSTER DOMINANCE -- Guest: Rob Kirby

Rob Kirby of Kirby Analytics joins me to discuss what he's calling full spectrum dominance - Bankster dominance, which is exactly what humanity is being subj...
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Hat tip to https://twitter.com/au_bug. Real interesting interview to listen to.

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Columbia Economist Dr. Jeffrey Sachs speaks candidly on monetary reform [Full version speech]

www.LostOutputClock.com -- Since 2008, the United States has missed out on over $4 trillion in National Income from unemployed workers and capital due to ins...
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Hat tip to www.zerohedge.com

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Richard Russell - We Are Witnessing Unprecedented Events

Richard Russell - We Are Witnessing Unprecedented Events | Gold and What Moves it. | Scoop.it

Richard Russell: “We are living in amazing times.  These are times that have ushered in unprecedented events.  For instance, did you know that the Dow has risen on 21 of the last 25 weeks?  On top of that, borrowing (margin debt) is at a near-record high of $346 billion (the record was $381 billion in July, 2007).  Never before has there been so little cash in money market funds relative to stocks and bonds.  Last week the yield on Barclays US high yield index fell to a record low 4.97%, the first time it has ever fallen below 5%.


The whole situation can be described in one sentence -- the search for yield has reached almost insane levels.  The question -- have investors driven certain assets to extremes in height, and have they placed various markets on dangerously thin ice?  Are we looking at a collection of new Fed-created super-bubbles?


What's the Russell advice?  My average subscriber is not a money manager.  Therefore, my average subscriber's job does not depend on his producing income or even profits.  My preference is to sit with cash and gold.  True, the purchasing power of cash is going steadily down.  This must be bothering the Fed.  What's the Fed's response?  Easy, just lie about the rate of inflation.  Or change the CPI. Actually, according to yesterday's Financial Times, the Fed is considering tapering off on its monthly buying of $85 billion worth of bonds and mortgage-backed securities.


So again, I say, let's try to keep it simple.  Our job is to ...

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How A Criminal Syndicate Of Banks Is Raping The Gold Market

How A Criminal Syndicate Of Banks Is Raping The Gold Market | Gold and What Moves it. | Scoop.it

Today one of the most well connected hedge fund managers in the world told King World News that a criminal syndicate of banks is raping the gold market with the cooperation of the US Federal Reserve.  Outspoken Hong Kong hedge fund manager William Kaye also spoke with King World News about exactly how this is being done and who is profiting.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in part III of an extraordinary written interview series which will be released today.


Kaye:  “Look at what’s happening to GLD and these other exchange traded products.  The gold is being looted, and it’s being looted in a systematic way.  GLD is a great example because it is by far the biggest gold ETP (exchange traded product) in the world. 


Who can deal for gold with this exchange traded product?  Who can deal with the Trustee?  Only ‘bankster’ banks.  15 bankster banks deal with Bank of New York Mellon who is the Trustee (of GLD), and negotiate the price based off of the London fixing, which is (also priced by) 5 bankster banks, the same crime family....



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And it looks to be continuing this morning as well.

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Charles Schwab complains of Fed's manipulation of markets | Gold Anti-Trust Action Committee

Charles Schwab complains of Fed's manipulation of markets | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it

Q: How do you feel about the robo-traders who have come to dominate stock trading?

 

A: They add nothing to the marketplace. They are scalpers. In times of crisis they suck out liquidity. They would argue they add liquidity. I don't think so.

 

Q: What should be done?

 

A: If I was czar, you would have the real marketplace here and let them go there and play in their dark pools like it's a video game or a lottery. There is no leadership in the SEC to do that. There is no leadership in government to do that. So consequently we have these unbridled frontiers.

 

Q: What impact is it having on your customers?

 

A: The average customer is not happy about it. It reduces confidence. Even though the market is at new highs, trading (by individual investors) is generally down. If it results in more long-term investing, that might be a good outcome.

 

Q: Is the Fed's zero interest rate policy doing more harm than good?

 

A: It's a disaster. I was in Florida talking to a bunch of retired people. They counted on having their savings accounts and CDs supplement their Social Security.

 

Q: The Fed's policy is hurting parts of your business, but to the extent it's raising stock prices, is that helping?

 

A: We have benefited from higher stock market prices and higher management fees.

 

Q: So on balance has it helped or hurt more?


A: We are more hurt by the manipulation of what's going on at the Fed. There's manipulation in oil prices, in milk prices, in monetary prices. We are highly dependent on the free-market system. But we are getting into a funny situation by having every little thing manipulated by government. Eventually it becomes something closer to socialism.

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Jesse's Café Américain: Currency Wars: Russia's Proposal for the Post-Bretton Woods II Global Financial System

Jesse's Café Américain: Currency Wars: Russia's Proposal for the Post-Bretton Woods II Global Financial System | Gold and What Moves it. | Scoop.it

The dollar reserve system has been struggling, if not failing, in stages for at least ten years now. 

There have been a series of financial crises since the mid-1990's that are related to the strains of an unsustainable reserve currency system which is no longer able to 'emulate the gold standard,' as ex-Fed Chairman Greenspan described it.  

This situation is a macrocosm of the failings of the Eurocurrency zone as it is presently constituted.

I believe that the ultimate solution will be to migrate global trade to a super-currency, constituted of a basket of currencies and most likely a metal or two, gold and silver. I have been calling it the 'SDR' but that is only a representative description. It is unlikely that 'ownership' of such an important instrument will be given to the IMF unless its management is opened up to a broader representation of countries and their interests.

This relieves the 'owner' of the currency from the need to run trade deficits in order to support the expansion of global trade, and allows them great freedom in pursuing domestic monetary policy without risking the global markets. cf Triffin's Dilemma.

There is a strong push from the Anglo-American banking cartel to maintain the status quo, for what are surely selfish reasons. A strong dollar and the dollar as reserve currency is a powerful tool of financial and political policy, even though it may take a toll on some segments of their own domestic economy. The bankers benefit, and the politicians are somewhat captured by their well-funded lobby. And so we have a bifurcated economic structure ...

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The Move To Global Hyperinflation Is Now Accelerating

The Move To Global Hyperinflation Is Now Accelerating | Gold and What Moves it. | Scoop.it

Egon von Greyerz told King World News:

 

“The shipping index hasn’t shown any signs of an upturn in the last year.  It trades about 90% lower than it was five years ago.  If we look at Japan, the yen is down 30% in the last year, and the Nikkei is up 70% since November.

 

As we know, government debt in Japan is 200% of GDP which is the highest in the world.  Total debt in Japan is around 500% of GDP and it’s accelerating.  The Japanese bond market is also a disaster and will only get worse.  Eventually Japanese bonds will become worthless.

 

Eric, what we are seeing here with the booming stock markets and weak currencies is a clear sign of the hyperinflation that is guaranteed to come.  The booming stock market is the first sign of hyperinflation.  That is always the case. ...

Hal's insight:

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This Key Chart Tells You All You Need To Know About Gold

This Key Chart Tells You All You Need To Know About Gold | Gold and What Moves it. | Scoop.it

With continued uncertainty in the gold and silver markets, today 56-year market veteran and analyst Ron Rosen sent KWN a key chart which tells KWN readers all they need to know about gold at this point.  Rosen also added commentary regarding what to expect going forward. 


“Gold bullion was allowed to fluctuate in a limited range by the ‘Powers that Be’ and they don’t live in Washington, DC.  Mother Nature runs this show and no one else does.  She limits movement to a natural range.  This logarithmic below chart is proof of that fact....

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PETER GRANDICH WEIGHS IN ON THE GOLD MARKET Mon May 13

PETER GRANDICH WEIGHS IN ON THE GOLD MARKET Mon May 13 | Gold and What Moves it. | Scoop.it
Peter Grandich weighs in on the gold market
Hal's insight:

You'll need to click through to hear the interview. I generally try to listen to most of the things Peter Grandich says. He's a straight shooter in my opinion. Talks about mining, etc.

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Michael Pento - Expect Unprecedented Economic Chaos

Michael Pento - Expect Unprecedented Economic Chaos | Gold and What Moves it. | Scoop.it

Bubbles Inflating Faster Than GDP 

 

Global central banks have clearly demonstrated the ability to re-inflate stock and real estate bubbles.  Global stock markets are roaring ahead of their economies and real estate prices are quickly rebounding from their recent collapse.  However, rock-bottom interest rates and massive money printing have yet to show an aptitude for creating sustainable GDP growth. 

 

There has been a lot of talk about a rebound in the equity and real estate markets helped along by the Fed’s free money.  That much is certainly the truth; but the evidence of a viable and sustainable recovery built on free-market forces just isn’t there. 

 

For example, the percentage of consumers who own their own home continued to fall during the first quarter of 2013, dropping to a national level that hasn't been seen since the fall of 1995.  The Census Bureau reported that the nation's home ownership rate slipped to 65% in Q1 2013, a decline from 65.4% posted in the last quarter of 2012.  The rate of home ownership now stands at a 17-year low!....

Hal's insight:

Click over for the rest of the article. I think to most sane people, and it is apparanent that there are a few left, that bubbles are part of the currency of the realm any more. The problem with that of course is that they aren't soapy bubbles. More like acid.

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Global Banks Massive Criminal Conspiracy In The Gold Market

Global Banks Massive Criminal Conspiracy In The Gold Market | Gold and What Moves it. | Scoop.it

Today one of the savviest and well connected hedge fund managers in the world told King World News that global banks are involved in a criminal conspiracy in the gold market.  Outspoken Hong Kong hedge fund manager William Kaye also spoke with King World News about what is really taking place behind the scenes in the war on gold.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in part II of an extraordinary written interview series which will be released today.


Kaye:  “The paper gold price has been driven well down.  We’re nowhere close to when gold peaked above $1,900.  We’re in the low $1,400s as I speak now, Eric.  


So price has gone down, but what about volume (in gold)?  Well, I can tell you that volumes in China year over year are up four to five times.  I can tell you that volumes in Thailand, a similar amount (to China, up four to five times).  ...


Hal's insight:

Click through for the rest of the interview. This has been causing me a big itch lately. There's a disconnect for sure between the markets. Certainly is strange to put it mildly.

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Detroit insolvent, EM Kevyn Orr says

Detroit insolvent, EM Kevyn Orr says | Gold and What Moves it. | Scoop.it

Emergency Manager Kevyn Orr says the city of Detroit's cash-flow crisis makes it "insolvent" and unable to borrow more money to mask over debts being made worse by skipping millions in payments for retiree pensions and health care.

 

After 45 days on the job, Orr's initial assessment of Detroit's perilous finances is laid bare in a 41-page report to be delivered today to state Treasurer Andy Dillon.

 

Calling it "a sobering wake-up call about the dire financial straits the city of Detroit faces," Orr said he will use the report as a baseline for paring down the city's $15.6 billion in debt and long-term liabilities.

 

Orr, a Washington, D.C., bankruptcy attorney, did not use the word "bankruptcy" anywhere in his report but said the city is "insolvent" and has "effectively exhausted its ability to borrow" after years of issuing long-term debt to pay its bills. Previously, he has said he hopes to avoid a Chapter 9 filing.

 

The report hints that city employees who were not hit by last year's wage reductions could face pay cuts in the near future ...



From The Detroit News: http://www.detroitnews.com/article/20130512/METRO01/305130320#ixzz2TBH7PoAA

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