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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Maguire - Elaborates On The LBMA Default & Ensuing Panic

Maguire - Elaborates On The LBMA Default & Ensuing Panic | Gold and What Moves it. | Scoop.it

Maguire:  “I must say I had some really distressed emails.  What they were asking is, ‘What should I do?’  All I could say to them is, ‘If I had physical stored in any bullion bank related warehouse, whether it be COMEX or LBMA, I would remove it right now.’


We all know that ‘default’ will not be called a ‘default.’  It will be settled with cash.  I do not believe for a minute that the Fed can’t print a few billion (dollars), whatever it costs, to bail out the bullion banks for cash.  Why wouldn’t they just bail them out with cash?  It’s just an electronic keystroke.  People will be sitting on the sidelines and they will not get any physical (gold).” ...

Hal's insight:

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oftwominds-Charles Hugh Smith: The Global Status Quo Strategy: Do More of What Has Failed Spectacularly

oftwominds-Charles Hugh Smith: The Global Status Quo Strategy: Do More of What Has Failed Spectacularly | Gold and What Moves it. | Scoop.it

The global Status Quo--the U.S., the E.U., China, Japan, Cyprus, Greece, Italy, Spain, et al.--has only one choice: do more of what has failed spectacularly.


A key goal of propaganda is to mystify and obscure the Power Elites' real quandary and agenda. For example: we're just trying to help you out here, folks, by inflating another "wealth effect" bubble that will make you feel more prosperous. You're gonna love the warm fuzzy feeling of a return to the good times, even if you own zip-zero-nada in the way of productive assets. Or: we're raising your taxes and expropriating your money via inflation to stabilize the system that benefits you. (And yes, you may kneel and kiss Janet Yellen's ring.) The current level of mystification is truly extraordinary. But fortunately, oftwominds.com owns a demystification device that scrubs out the mystification, leaving only stark, unforgiving reality: 1. The global Power Elites know reform is necessary, but the risks of reform are unacceptably high. Why are they unacceptably high? The Status Quo players might lose power and perquisites, and that is unacceptable. These include crony capitalists, cartels, quasi-monopolies, public unions, state fiefdoms, the banking sector and assorted other predators and parasites. ...
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Short covering rally likely in precious metals after a sharp fall

Short covering rally likely in precious metals after a sharp fall | Gold and What Moves it. | Scoop.it

Last week gold fell by 8.5%, silver by 13.6%, platinum and palladium fell by less than 6%.6.0%. There were a number of reasons for the drop in the gold price. In our view it was a classic case of speculative investors taking advantage of gold-negative fundamental news and causing technical break-points to be breached, driving a self-fulfilling downward price spiral.

 

LONDON (Bullion Street): A short covering rally in gold is likely even as short gold contracts have fallen slightly as shorts remain elevated as per data released by US CFTC last Tuesday, according to ETF Securities Ltd (ETFS).

 

"Indeed, the stabilisation of gold prices may be an indication of that already occurring. However, the near-term outlook for gold is likely to remain weak as investors focus on the improving US economy and its implications for ess monetary easing. Even those bruised by last week's events are likely to return their attention to the fundamentals and over the longer-term, the outlook for gold remains constructive," ETFS added. ...

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What You Must Know About Where Markets Are Headed & Why

What You Must Know About Where Markets Are Headed & Why | Gold and What Moves it. | Scoop.it

On the heels of continued volatility in gold and silver, today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News.  Fitzwilson, who is founder of The Portola Group, tells KWN readers what they must know about the incredible action that is now taking place in these key markets.


Fitzwilson:  “Younger investors might wonder why those of us who lived through the 1970’s regularly revert back to that decade for insights.  For one, it was when many of us launched our careers.  Most importantly, the investment and political environments with which we grapple today were largely born in the actions taken in that 10-year period.  We believe that it is crucial to understand how similar and yet how different the markets, politics and the economy were from the present if we are to navigate the the world of today successfully.


At the start of that decade, very few people had any significant wealth. ...


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Why I won’t be selling my gold or silver - The Spectator

Why I won’t be selling my gold or silver - The Spectator | Gold and What Moves it. | Scoop.it

It must be a couple of years since, spooked by the banking crisis and walking past the Savoy hotel on the Strand, I remembered a clever but impetuous Polish friend’s advice to buy bullion — silver or gold — and his mention that there was a respectable dealer in the Savoy arcade. And as I walked I had found my feet all but drawn by some mysterious, irrational force into the arcade. I had struggled home with an implausibly heavy briefcase. The bullion-buying phase of my life, phase one, had begun. I made arrangements for secure storage with a bank, and cancelled further payments into my pension plan.

 

I wrote about that day for the Times. I have not written about it since. Readers who post comments online sometimes ask how my investments are doing; some sneer; some seem envious; others are curious.

 

And my answer? I have entered phase two. Which is lucky. In phase one I should have found recent plummeting gold prices hard to take.

 

Phase one was characterised by a suspicion that I knew to be exaggerated but which nagged me nevertheless: that the global economy might crash again; that the price of gold and silver would soar; and that I should make big speculative gains on my purchases ...

Hal's insight:

hat tip to http://www.checkgoldprice.com

 

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Trader Dan's Market Views: Gold Commitment of Traders Explains surge in Open Interest

Trader Dan's Market Views: Gold Commitment of Traders Explains surge in Open Interest | Gold and What Moves it. | Scoop.it

Many commentators have been confused by the recent open interest readings that we have been getting out of the CME Group detailing the movements of traders into or out of the gold futures markets. They have been looking at the huge increase and have been somewhat baffled at best and downright confused at worst.

While there is no doubt in my mind that it was a series of extremely large sell orders that got this downside ball rolling something else is going on that explains these open interest readings. 

The usual pattern that we have seen in the gold market over the last decade-plus bull market has been a build up in the hedge fund long positions as they buy the market which is countered by the bullion banks and swap dealers taking the other side of that trade and going short. At some point, the market stalls in its upward momentum, a trigger occurs, and then the price reverses as the hedgies sell out or liquidate their long positions. This selling is then met with buying or the covering of shorts by the bullion banks and swap dealers.

At some point ...

Hal's insight:

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HOUSING RECOVERY STORYLINE CRUSHED AGAIN « The Burning Platform

Gotta love that NAR spin machine. Existing home sales FALL during the biggest selling month of the year and they blame it on lack of inventory. *#&$*(@(!!!!


When investors account for 30% of total sales and distressed sales account for 21% of total sales, you DO NOT have a healthy recovering housing market. You have a manipulated housing market, with Wall Street shysters artificially driving home prices upward so they can repair their insolvent balance sheets and lure dupes into the housing market before they crash it again while exiting their rental play.


Even their seasonal adjustments are bullshit. They claim that single family home sales are 9.1% higher than last year. When you go to the actual unmanipulated data, actual sales were only 5.7% higher than last year. ...

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Is Gold a Disappointing 'Safe Haven'? | Julian D. W. Phillips | Safehaven.com

Is Gold a Disappointing 'Safe Haven'? | Julian D. W. Phillips | Safehaven.com | Gold and What Moves it. | Scoop.it
What is a "Safe-Haven"?

It should be defined as a long-term investment that holds its value internationally, in extreme financial times. Is gold one of these? After all, it has fallen from $1,921 at its peak to $1,344 at its trough. This is a 30% fall over the last year plus. At one time George Soros described gold as the "Ultimate Safe-Haven", before saying it was a "disappointing Safe-Haven". Alan Greenspan described gold as being "money in extremis."


The SPDR gold ETF

In the "Bear Raid" we have seen over the last fortnight when gold was smashed down $200 after declining $100 before that, the physical gold sales came almost exclusively from the SPDR gold ETF before being accompanied by a massive 400 tonne gold short on COMEX. In addition, two large U.S. banks, Goldman Sachs and Merrill Lynch appeared to act 'in concert' to ensure the raid was successful.

 

Until this year the holding of the gold ETFs did not move except slightly as its shareholders were long-term investors not traders in the gold price for profit. They hold gold for wealth protection in the long-term.

 

By long-term we mean just that. In India for instance gold is passed down from mother to daughter through the generations. There, gold is used as collateral for loans and usually not sold. Some sell when the price is what they consider too high, but sold with the intention of buying back on a price retreat.

 

Serious gold investors take their savings and financial successes and put them in gold to weather the storms we have seen over the last century. Europe in particular has done this and survived two World Wars and two currency collapses, so far in the last century, provided they held their gold in Switzerland.

 

These long-term gold holders agree with Alan Greenspan that gold is held for extreme days.

 

But ...

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the Fed and their agents have shot themselves directly in the feet- Jim Sinclair's Mineset

the Fed and their agents have shot themselves directly in the feet- Jim Sinclair's Mineset | Gold and What Moves it. | Scoop.it

None of us would deny that we know gold is the center of the financial universe, but to say it is mixed company is another thing.

 

Many of us see the emancipation of gold standing before us in plain sight, but few understand what it means for the virtual financial paper gold and the ascendancy of real savings medium gold. Congratulations to Dr. Ferneke for seeing the mechanism of the transition.

 

Yes, the paper hangers of the Fed and their agents have shot themselves directly in the feet with that manufactured take down in price. It has backfired and maybe in a terminal fashion for virtual financial paper gold. The premium on physical gold is the ultimate TELL of where we are going. ...

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Gold and silver price dive: physical sales surge, prices begin to rise again - GOLD ANALYSIS - Mineweb.com

Gold and silver price dive: physical sales surge, prices begin to rise again - GOLD ANALYSIS - Mineweb.com | Gold and What Moves it. | Scoop.it

Author: Lawrence Williams
Posted: Monday , 22 Apr 2013 

LONDON (MINEWEB) - 

 

The huge dumping of paper gold and the subsequent sales out of the big GLD gold ETF of last week do seem to have generated remarkable buying momentum for both gold and silver, with prices recovering from their nadirs of around $1350 for gold and $22.70 for silver.

 

There had been some decent recovery by the end of last week, but markets surged again when they opened in Asia this morning and there has been some strength too as markets opened in Europe, with gold hitting $1425 and silver $23.50 – gains of 5.5% and 3.5% respectively meaning potentially quick gains for those who came in at the lowest prices – at least in theory, but premiums due to the apparently enormous demand for physical metal, will have mitigated gains.

 

Interestingly, on premiums, Ed Steer pointed out in a recent newsletter, with a supporting chart, that  the wholesale premiums bid by U.S. dealers for 90% U.S. silver coinage have started to spike in a manner last seen in 2008, which preceded a bug boom in silver prices from a very low level ...

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The Gold and Silver Manipulation Continues, But Why?

Lou discusses the continued and obvious coordinated takedown of gold and silver last week. Why are they so desperate to get gold and silver lower?

Hal's insight:

Good to watch.

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Swiss To Vote On Gold Repatriation - "Gold Is The Only Valuable Asset On The SNB's Balance Sheet"

Swiss To Vote On Gold Repatriation - "Gold Is The Only Valuable Asset On The SNB's Balance Sheet" | Gold and What Moves it. | Scoop.it

A few weeks ago, we wrote of the Swiss People’s Party’s efforts to gain enough signatures to force the Swiss National Bank (SNB), who ‘supposedly’ guarantees the price stability in Switzerland, to stop selling its gold reserves. This last week, as the FT reports, they reached the required 100,000 signature mark and on Thursday the federal chancellery confirmed Switzerland is to hold a referendum that would ban the central bank from selling its gold reserves, force it to keep at least 20% of its assets in the metal, and  repatriate gold reserves held abroad and keep them at home. Following Cyprus’ forced sales and discussions of the net wealth in other European peripheral nations, proponents of the Swiss measure flatly reject the idea of sales, arguing that disposals of gold reserves at low prices between 2001 and 2006, as well as more recently, have cost Switzerland billions of Swiss francs. The “Save Our Swiss Franc” initiative proclaims, “today gold is almost the only really valuable asset left on the SNB’s balance sheet.” The SNB, however, is concerned at, “the monetary policy implications of the demands in the initiative.” A date for the referendum has not yet been set – but the FT notes that previous ‘referenda’ have taken up to several years from acceptance to actual vote. ...

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oftwominds-Charles Hugh Smith: The Decline of Self-Employment and Small Business

oftwominds-Charles Hugh Smith: The Decline of Self-Employment and Small Business | Gold and What Moves it. | Scoop.it

Small business is the incubator of employment. As it declines, so too do opportunities for first jobs, second chances and economic independence.


Self-employment and small business are two sides of a single economic coin: financial independence. The Bureau of Labor Statistics (BLS) counts two types of self-employed, the unincorporated and the incorporated. The unincorporated may have employees, but typically do not, i.e. they are sole proprietors. The incorporated have employees, starting with the owner, as the BLS counts the incorporated self-employed as employees of their own corporation. I know that's confusing, but it's important to separate the sole proprietors from those "self-employed" incorporated businesses that have employees: law firms, doctors' offices, accountants, etc. When we speak of "small business," we're referring in large part to the incorporated self-employed: people who establish corporations as the legal structure for their enterprise. ...
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Maguire - Gold Deliveries Into China Soar To 1,000 Tons

Maguire - Gold Deliveries Into China Soar To 1,000 Tons | Gold and What Moves it. | Scoop.it

“But having seen this vast amount of physical being sought, you realize that it’s physical, one to one.  It’s not leveraged.  Whereas you are essentially trading against an unlimited synthetic supply of paper gold (in the paper market). 


There is a lagging period where you’ve got these vast quantities of fresh leveraged supply coming in versus this unleveraged physical demand.  Leverage works in two ways.  It also works against the sellers.  I think you saw that last Wednesday with what I believe looked like a bottom.  


The key thing is the physical wholesale markets, and I’m seeing the same thing now.  I’m not seeing any letup in physical demand.  The central banks, the sovereigns, they were buying at $1,800, $1,700, $1,600.  But when you take a dip to this kind of level where we actually start to approach break-even cost of mining (gold), well, obviously that was an act of desperation (on the part of central planners).  


As Russia, or China, why not just pick it (gold) up and ship it over?  It’s quicker (than mining it).  So you’ve reached a point where the lines cross, and the physical market diverges.  I have checked the numbers now and we are very close to 1,000 tons of deliveries just this year into Shanghai. ...

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Sinclair - Swiss Bank Just Refused To Give My Friend His Gold

Sinclair - Swiss Bank Just Refused To Give My Friend His Gold | Gold and What Moves it. | Scoop.it
 

Today legendary trader Jim Sinclair stunned King World News when he revealed that a dear friend of his who is very affluent just had a Swiss bank refuse to return his large hoard of gold when he asked for it out of an allocated account.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable and candid interview.

 

 

Eric King:  “Maguire spoke on KWN yesterday about the fact that one of his clients went to the LBMA to get the metal from them and could not get it.  They told him he would be cash settled.  This is what you have been talking about is the failure of the physical markets.”

 

Sinclair:  “A person that I know with significant deposits in one of the primary Swiss banks, in allocated gold, wanted to take out his gold and was just refused on the basis of directives from the central bank....

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If You're Still In This Gold & Silver Market---I'm Impressed!

I meant to say that Rick Rule is expecting a stealth "BULL" market in September at the 7:15 mark...Thanks Guys! Reference ShortLinks: Rick Rule Interview: ht...
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Own Gold LLC's curator insight, April 22, 2013 2:34 PM

Watch this guy explain inflation.... and the future of gold...

 

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China Hasn't "Seen This Gold Rush In 20 Years" | Zero Hedge

As we noted last week, all around the world the demand for physical precious metals has soared in the days following paper gold's price collapse. As the FT reports, from Shanghai and Hong Kong to India, one dealer noted, "Older members who have been in the business for 50 years haven’t seen such a thing." The feverish buying has left many of Hong Kong's banks, jewelers, and even its gold exchange without enough gold to meet demand. Record volumes on Shanghai's exchange, lines outside Beijing jewelry stores, and the proximity of Hindu festivals drove "Indian physical demand and premiums," higher as the worlds two largest gold buying nations prompted one exchange CEO to note that we hadn't, "seen this kind of gold rush in over 20 years." It would seem the concerted effort to collapse paper prices in ...

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Recession Causing A Shortage Of High Quality Victorian Vintage Gold And …

Antique Victorian Jewelry

One of a kind Victorian Gold and Silver Jewelry are being melted down at an alarming rate. Jose Padilla, the owner of popular antique store, has been into the business for over 20 years now. He put in efforts to save the best antiques and collectables including top quality Victorian jewelry, silver, antique pottery and depression glasses among others and then look for a perfect home for them. In a way, he is playing his part in preserving the history of the USA. ...

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Gold Update – by Peter Grandich

Gold Update –  by Peter Grandich | Gold and What Moves it. | Scoop.it

Gold – It would be natural for a rebound to previous key support around $1,500 but there’s nothing natural in the gold market. It would be nice to think the “bad” people have done their thing and moved on but I doubt it. However, lets enjoy this rebound and then see how much the Crimenex has left in its bag of tricks.

Hal's insight:

Click over for his thoughts on other markets like Bonds and Dollar.

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Twitter / shazzy_p99: @gold_tracker Here is the pic ...

Hal's insight:

Shazz shows us the line for buying some gold yesterday!

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Jeffrey Sachs of Columbia University speaking at the "Fixing the Banking System for Good" conference on April 17

Jeffrey Sachs of Columbia University speaking at the "Fixing the Banking System for Good" conference on April 17

Hal's insight:

This is a must listen to piece of audio.

 

hat tip to http://www.huffingtonpost.com/janet-tavakoli/i-regard-the-wall-street_b_3110405.html

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The Next Bank Meltdown Won't Be an "Accident"

The Next Bank Meltdown Won't Be an "Accident" | Gold and What Moves it. | Scoop.it

Big banks turned in a pretty stellar first quarter. All but one beat profits expectations. But as I told you last week, I’m now out of these stocks completely.

 

Do you want the truth about what shape banks are in right now? Sure you can handle it?


I’m sorry; I can’t tell you the truth.

 

Regulators can’t tell you the truth.

 

And the Federal Reserve won’t tell you the truth.

 

No one can tell you the truth. That’s because banks don’t tell the truth. And neither does the Federal Reserve.

 

You won’t know the truth… until the next meltdown (which, by the way, is coming). Because in an acceptable kind of way, it’s hidden from regulators by banks themselves – with the aiding and abetting winks and nods of central banks.

 

Of course, to the untrained eye, it’s all a matter of unintended consequences that result from trying to regulate and safeguard the world’s agonizingly complex financial systems.

 

That’s what they want you to believe. It’s not the truth.

 

The truth is, the next meltdown will be no accident, either…

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Jesse's Café Américain: Fekete: Who Said the Hydra Would Take It Lying Down - A Failure Not of Knowledge, But Character

Jesse's Café Américain: Fekete: Who Said the Hydra Would Take It Lying Down - A Failure Not of Knowledge, But Character | Gold and What Moves it. | Scoop.it

By way of introduction, Professor Antal Fekete defines the gold basis as the difference between the price of gold in the nearest futures contract and the price of gold for immediate delivery. 

In commodity trading contango is the situation where the difference is positive, that is, there is a premium placed on the futures contract. In backwardation, there is a negative difference, that is, one will pay more for gold for immediate delivery than you will for the futures contract, or a promise of delivery.

Contango is the normal condition in most commodities because of the time value of money or inflation. I think most are familiar with that concept. Think of it in terms of Net Present Value. If something will become more valuable in the future because of inflation, it will cost more than the same object if possession is taken today, less any organic growth and dividends. 

This is always tied in with the risk free interest rate and the application of a risk factor. If you have not seen the video called Risk then you may wish to see it. Risk is just a calculation that estimates the probability that the underlying value of a thing will deviate from expectations without considering inflation, based on some change in fundamental valuation.

Now for some really good news. You can understand what Professor Fekete is saying without bothering about any of the theoretical.    Academics like to think about this and Fekete is a deep thinker on the subject, and we are glad and grateful for his work.  Theoretical work provides the planks and the plans out of which practical men like me build houses.   But unless you have taken courses in Economics and Finance you probably are not as familiar with the mechanics of this. ...

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Kaye - This Move To Destroy Confidence In Gold Has Failed

Kaye - This Move To Destroy Confidence In Gold Has Failed | Gold and What Moves it. | Scoop.it

Today outspoken hedge fund manager William Kaye told King World News that the central planners’ move to destroy confidence in gold has failed.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions and who is the founder of Pacific Group in Hong Kong, had this to say in part II of an outstanding two part series of written interviews that has now been released.


Eric King:  “Bill, you spoke on KWN last time about gold eventually seeing the greatest short squeeze in history.  How has this takedown in gold and the corresponding physical offtake affected your thoughts on how this squeeze will unfold going forward?”


Kaye: “Well, as I said earlier, these guys are evil, but they are not stupid.  There is a real possibility that, despite the fact there was a reasonable gambit that they could succeed in shaking confidence, and I think that certainly was one of the key motivations here over the last week, (central planners were thinking) ‘Let’s destroy the psychology that accompanies a 12-year bull market.  Let’s see what we can do to destroy that psychology, and maybe we can extend the regime that we want for a bit longer than would otherwise be the case.’  


That’s an interesting gambit, and I have to say I could see why reasonably bright people would think that could work, and there have been cases in history where it has worked.  But it’s not working....


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