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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The only reason why someone would sell a boat load of contracts in the thinly-traded Far East - Ed Steer

The only reason why someone would sell a boat load of contracts in the thinly-traded Far East - Ed Steer | Gold and What Moves it. | Scoop.it
Ed Steer:

"...The only reason why someone would sell a boat load of contracts in the thinly-traded Far East market is to affect the price...and generate more technical fund long liquidation so the shorts can cover. That's precisely what JPMorgan et al were up to on Wednesday evening...but how successful they were won't be known until next Friday's COT Report. What I found surprising was that there was no downside follow-through during the Comex trading session in New York."
Hal's insight:

Yup.

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Silver analysis – 13th December 2012

Silver analysis – 13th December 2012 | Gold and What Moves it. | Scoop.it
March silver futures closed lower yesterday, reversing the gains of Wednesday, and ending the trading session with a wide spread down bar, finally closing at $32.355 per ounce and reflecting a similar pattern for gold, which also sold off sharply on the day, breaking below the key $1700 per ounce level once again. The price action yesterday for silver was significant, and with the market closing well below the recent short term consolidation in the $32.50 to $33.50 per ounce area, this is now increasing the negative sentiment for the metal in the short term. Silver is an industrial metal, and therefore more closely reflects the broader economic outlook, and with the so called ‘fiscal cliff’ now fast approaching, risk markets are becoming increasingly nervous heading into the year end.
Hal's insight:

Anna's point about the outlook for the broader economy when looking at silver is something to chew on. click through for the rest of her analysis

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Three arrested in UK over Libor rate fixing scandal — RT

Three arrested in UK over Libor rate fixing scandal — RT | Gold and What Moves it. | Scoop.it
The UK anti-fraud agency has arrested three men in connection with the Libor interest rate manipulation scandal that broke earlier this year.
Hal's insight:

Does anyone still believe anything but obfuscation will come of the whole LIBOR thing. My initial though is someone just became the scapegoat.

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The Daily Nugget – Gold unimpressed by Fed | The Daily Gold

The Daily Nugget – Gold unimpressed by Fed | The Daily Gold | Gold and What Moves it. | Scoop.it
by Jan Skoyles:

Gold price below $1,700? But the Fed have just doubled QE, isn’t gold supposed to go up?

Not anymore, as I wrote in our gold investment news on Tuesday – gold almost appears bored by the Fed. Expectations of the Fed’s money printing schemes had already been taken into account by markets, and of course concerns that this round of QE could be ‘limited’ (inflation) are making investors cautious. It seems markets wanted unlimited QE as we saw announced previously.

We are, obviously, also coming to year end. Many are looking to liquidate and square up their positions before the Christmas break. All of these factors are clearly short-term. In the long-term these moves by the Fed are clearly good news for gold. Physical gold investment demand appears to be holding steady, however the price cannot hold against those investors looking to sell and quickly book profits. ...
Hal's insight:

So this could be an interesting opportunity to stack some coin this December. 

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More than half of Dutch gold is at NY Fed, finance minister says | Gold Anti-Trust Action Committee

More than half of Dutch gold is at NY Fed, finance minister says | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it
THE HAGUE, Netherlands -- A little more than half of the gold of De Nederlandsche Bank is stored at the U.S. Federal Reserve in New York.

Furthermore, 20 percent is in the Canadian central bank in Ottawa, nearly 20 percent is located in London, and only 11 percent is at the DNB itself in Amsterdam.

That was said by Dutch Finance Minister Jeroen Dijsselbloem in response to parliamentary questions from Christian Democratic Appeal Member of Parliament Eddy Hijum.

Hijum inquired because of reports that Germany is making sure that its own gold bars held abroad are really physically on site. ...
Hal's insight:

Haha. Some one in the US is smiling devilishly.

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Levy on gold could be budget windfall - U.S. lawmakers - FAST NEWS - Mineweb.com Mineweb

Levy on gold could be budget windfall - U.S. lawmakers - FAST NEWS - Mineweb.com Mineweb | Gold and What Moves it. | Scoop.it
by Patrick Rucker

U.S. Representative Raul Grijalva and Senator Tom Udall of New Mexico, who jointly called for the GAO report, say taxpayers should also benefit from a gold price surge that has boosted the bottom line for miners.

Revising a 19th-century U.S. law that governs the mining of gold and other precious metals could add billions of dollars to federal coffers at a time of tight budgets, according to some Democratic lawmakers and a government study released on Wednesday.

Taxpayers receive no royalties on metals pulled from federal land, and officials drew a blank when they tried to find out how much gold, silver, copper and other valuable metal is sold.

"Federal agencies generally do not collect data from hardrock mine operators," said the report from the nonpartisan Government Accountability Office which looked at the market in 2010 and 2011.
Hal's insight:

I imagine this will very likely come to pass.

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Turkish jewelers avert Gold loss during jewelry making

ATO said during the processing of one kilogram of gold, about 300 grams of gold dust is created which was wasted.

ANKARA(BullionStreet): Europe's largest gold recycling center Turkey has decided to use several creative methods, allowing shops to earn tens of thousands of Turkish Liras on previously wasted gold each year.

According to Chamber of Trade (ATO) Jeweler Committee in Adana, a southern Turkish city, errant gold dust that is wasted during the jewelry-making process is being recycled via special methods in the city, potentially providing jewelers with several more kilograms of the precious metal every year.

Gold dust wasted in places where gold is processed – on the hands of workers or on the floor of jewelry shops – is being preserved with the use of several creative methods, allowing shops to earn tens of thousands of Turkish Liras on previously wasted gold each year. ...
Hal's insight:

It says something when you start looking at ways to capture gold dust being wasted.

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Colombian armed rebels tighten control over gold mining | MINING.com

Colombian armed rebels tighten control over gold mining | MINING.com | Gold and What Moves it. | Scoop.it
The Revolutionary Armed Forces of Colombia (FARC) and a new generation of drug gangs (known locally as “Bacrims”) are increasingly turning to gold mining to finance their terrorist acts, reveals a report released Thursday by political risk firm Exclusive Analysis.

“FARC and drug gang involvement in gold mining increases extortion and property damage risks, particularly in Antioquia and Putumayo,” said Carlos Caicedo, head of Latin America forecasting.

The expert says that funds coming from mining operations are now the main source of income for the revolutionary groups. In some provinces, he added, it has overtaken drug trafficking, especially in areas controlled by the FARC.
Hal's insight:

A dangerous zone.

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Trader Dan's Market Views: Whoops - that Didn't Last Long!

Trader Dan's Market Views: Whoops - that Didn't Last Long! | Gold and What Moves it. | Scoop.it
by Dan Norcini:

"... successive burst of QE has had less and less of an impact on the markets and particularly on the economy in general as those rounds have made their impact. One has to wonder if this is the case.

"Again, it is too early to speak too dogmatically about any bearish reaction but the bulls had better get a strong close in the S&P in tomorrow's session and especially on Friday of this week or we are going to see a good sized round of profit taking by longs emerging, especially with the end of the year fast approaching and the window to realize any paper profits under this year's lower tax rates rapidly closing. ..."
Hal's insight:

click through to see what he has to say about gold and silver yesteday as well.

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All Of My Bags Were Searched & They Were Looking For Money

All Of My Bags Were Searched & They Were Looking For Money | Gold and What Moves it. | Scoop.it
Keith Barron tells King World News about his experience of coming back into America:

"... “The Kirchner government has said this is in the best interests of the tourists so that they don’t get robbed. That is complete BS. I spoke with a taxi driver yesterday and he said, ‘Look, it’s because they don’t want you to pay cash for anything.’ Everyone wants to get cash so they can get paid under the table because the taxes are so high here (in Argentina).

"Like I’ve seen in many other countries before with rampant inflation, everything is moving off the record and into the black market. The cost of living is skyrocketing for the locals and it’s a very dire situation here in Argentina. I don’t think this will continue for too long before something breaks because the people are starting to get quite angry.

"Circling back to the US, today was about verifying the inflationary stance of the Fed and that’s a bullish thing for gold. So we are going to see more measures that will be more inflationary for the US, which is why it’s so appropriate that I am able to pass along what is happening here in Argentina to KWN readers because at some point the US will be in a similar state. ..."
Hal's insight:

This is an interesting read. It's amazing how much we have moved away from freedom. I clipped the interesting part that jumped out at me about taxes and blackmarket.

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Buy Gold - Fed To Print Over $1,000,000,000,000 Per Year

Buy Gold - Fed To Print Over $1,000,000,000,000 Per Year | Gold and What Moves it. | Scoop.it
Today acclaimed money manager Stephen Leeb spoke with King World News about the FOMC meeting and what is happening with gold and silver. Here is what Leeb had to say: “Eric, yesterday was Fed day and the Fed didn’t surprise too many people when they announced they were going to buy $85 billion worth of government paper each month. If you do the calculations that comes to $1 trillion per year. This leaves me speechless $1 trillion worth of paper each year.

“Combine that with what Japan is doing. The Japanese yen yesterday was getting crushed because they are now in the midst of doing the same thing. Here you are in world where every major economic bloc is printing money as fast as they can. This is really making me angry.

"I care about this country and the people that live here, and when you see money being printed like tissue paper, you know most bond certificates are going to be used to burn wood and keep houses warm...."
Hal's insight:

We've long reached the point where these numbers are so far beyond most folks's comprehension that it is only a matter of time before we collapse under the weight of so much debt.

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Euro zone readies for bunga bunga dance - MarketWatch

Euro zone readies for bunga bunga dance - MarketWatch | Gold and What Moves it. | Scoop.it
MarketWatchEuro zone readies for bunga bunga danceMarketWatchIn response, Monti, the steady-handed technocrat whose reform agenda had stabilized bond markets and mitigated the risk that Italy would be forced out the euro zone, declared on Saturday...
Hal's insight:

LOL just have to LOL at the headline.

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The Bernank Giveth

The Bernank Giveth | Gold and What Moves it. | Scoop.it
Well, there you have it. The Fed gave us The Full Monty. Beginning in January, The Fed will provide $85B/month in "unsterilized liquidity". For prespective, QE2 was about $70B/month of unsterilzed money printing for a total of eight months and $600B. This latest incarnation of Quantitative Easing represents 20% more QE/month and it's open-ended! New and improved with even more, freshly-printed greenback! What a deal!!
Hal's insight:

click through for the rest from TF Metals.

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Fed’s Balance Sheet To Hit A Shocking $6 Trillion

Fed’s Balance Sheet To Hit A Shocking $6 Trillion | Gold and What Moves it. | Scoop.it
Michael Pento tells King World News:

“The Fed recently celebrated the fourth anniversary of zero percent rates and massive expansion of its balance sheet. However, even after this incredibly accommodative monetary policy has been in effect since 2009, the labor condition in this country has yet to show significant improvement. Last month’s Non-Farm Payroll report showed that the labor force participation rate and employment to population ratio is still shrinking.

Goods-producing jobs continue to be lost and middle aged individuals are giving up looking for work. This is the only reason why the unemployment rate is falling. I guess if all those people currently looking for work decide it’s a better idea to stay home and watch soap operas, the unemployment rate would be zero.

But more of the Fed’s easy money won’t help because the issue isn’t the cost of money but rather the over-indebted condition of the U.S. government and private sector. Keeping the interest rate on Treasuries low only enables the government to go further into debt. And consumers aren’t balking on buying more houses because mortgage rates are too high.

The plain truth is this is a balance sheet recession and not one due to onerous interest rates. More of the Fed’s monetization may be able to bring down debt service payments a little bit further on consumer’s debt. However, it will also cause food and energy prices to be much higher than they would otherwise be.

The damage done to the middle class...
Hal's insight:

More debt, more debt, more jobs... No I don't think that's a winning formula either. At some point the worm will turn and things will violently react to the the illusion that becomes undone.

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10 Things You Didn't Know About Gold | ZeroHedge

With gold and silver down this morning - following a mysterious vertical plunge last night (once again) - we thought ConvergEx's Nick Colas' timely discussion of gold was worthwhile.
Hal's insight:

good read. click through.

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oftwominds-Charles Hugh Smith: Essays in Fragility: The Rise and Fall of Phantom Housing Collateral

oftwominds-Charles Hugh Smith: Essays in Fragility: The Rise and Fall of Phantom Housing Collateral | Gold and What Moves it. | Scoop.it
Charles Hugh Smith writes:

How much phantom housing collateral is still on the books? Nobody knows, and that in itself renders the housing/mortgage sector fragile.

Mortgage debt doubled in a mere decade. If we go back to pre-bubble 1997, residential mortgages totaled $5.1 trillion. (Source: mortgage debt outstanding, 1959-2003). This was roughly 50% of real GDP of $10 trillion (source: Real U.S. GDP).

At the top of the bubble, residential mortgage debt was $10.57 trillion, more than double the total of 1997. (Source: Balance Sheet of Households, Federal Reserve). This was 79.3% of real GDP--a rise of 30%.

As a percentage of disposable personal income, mortgage debt rose from 53% in 1960 to 113% in 2003. Income rose over those 43 years, of course, but mortgage debt rose much faster.

Mortgage debt has declined as lenders have written off losses. Mortgage debt has declined from $10.56 trillion in 2007 to $9.48 Trillion in 2012. Is it coincidence that this $1.1 trillion decline equals the Fed's purchases of mortgages since 2009? The World's Largest Money-Laundering Machine: The Federal Reserve (October 8, 2012) "The Fed is now where mortgages go to die" -- Catherine Austin Fitts ...
Hal's insight:

Click over for the rest of his piece.

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Confiscation of Gold - Then What? - Part 1/4 | Julian D. W. Phillips | Safehaven.com

Confiscation of Gold - Then What? - Part 1/4 | Julian D. W. Phillips | Safehaven.com | Gold and What Moves it. | Scoop.it
Several analysts and respected members of the gold community have stated that the confiscation of gold is unlikely because the conditions that precipitated it in 1933 don't exist anymore. We agree wholeheartedly with that view. But we feel that the confiscation of gold is extremely likely for very different reasons.

For the last 40+ year, the world has used un-backed paper money and attempted to discredit gold. This system is entirely reliant on the confidence people have in governments and the central banks that issue the money (at will). Over the 40 years of this experiment, gold has gone from $35 to $1,715, a rise of nearly 50 times. Since 2007 we've seen banking crises across the developed world leaving bankers borrowing money from central banks and lending it back to them, rather than lend it out into the general economies or in some cases to each other.

Before we continue, we would like to stress one point that gold investors must be made aware of. This is not simply an academic discussion. If we are wrong, you will continue to own your gold with it under your full control. If we are right and you haven't acted prudently to protect against confiscation, you will lose your gold. It's all about risks and rewards.
Hal's insight:

The discussion continues.

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Sudan to set up Gold exchange, stop Gold ore export in 2013

According to country's central bank, the Central Bank of Sudan (CboS),the export ban will come into effect from Jan 1st 2013.

KHARTOUM(BullionStreet): In a significant devolopment, Sudan said it will stop gold ore exports from next year and set up a precious metals exchange.

According to country’s central bank, the Central Bank of Sudan (CboS),the export ban will come into effect from Jan 1st 2013.

The central bank however not gave any reason for the decision but said it will focus on developing marketing channels for it locally through the establishment of precious-metals exchange in Sudan.

Gold mining firms will be allowed to export in line with CBoS policies and only after refining it in the newly built Khartoum refinery.
Hal's insight:

Do they really have to give a reason? I should think the idea of gold just walking out of one's country on it's way to other metal hungry countries would be pretty obivous.

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Largest Capital In The World Now Entering Gold & Silver Space!

Largest Capital In The World Now Entering Gold & Silver Space! | Gold and What Moves it. | Scoop.it
Today Rick Rule told King World News that the most massive and most intelligent pools of capital on the planet are now looking to crowd into the gold and silver space. This is huge news for a sector that has been in a state of consolidation for over a year, and strongly supports the thesis that 2013 will be a banner year for gold and silver.

Rule had this to say about this extraordinary development: “The things that support the thesis, particularly with regards to the gold equities, has been the approaches Sprott (Asset Management) has gotten from the very largest sovereign wealth funds in the world, and the very largest suppliers of private capital in the world.

“It’s interesting to see the big money starting to be attracted to the sector. It’s interesting to see that point of view being shared by the largest aggregations of capital on the planet. There are oceans of capital looking for a home.

There are literally trillions of dollars looking for a home....
Hal's insight:

let the games begin.

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Gold dips after Fed announces limited QE4

However they added that physical gold buying demand is expected to pick up after prices fell below $1,700 level.

SINGAPORE(BullionStreet): Gold eased after US Fed announced more quantitative easing at a rate of $85 billion a month for an extended period of time.

Gold for immediate delivery was seen trading at $1693.84 an ounce at 12.00 noon Singapore time while US gold was seen trading at $1701.59 an ounce on the comex.

Analysts said the precious yellow metal lost nearly one percent after the announcement as the Fed linked its monetary policy to unemployment, raising concerns that future economic stimulus could be limited.

However they added that physical gold buying demand is expected to pick up after prices fell below $1,700 level.
Hal's insight:

HFT helped in that down turn in early Asian trading from what I understand.

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Jim’s Mailbox « Jim Sinclair's Mineset

Jim’s Mailbox « Jim Sinclair's Mineset | Gold and What Moves it. | Scoop.it
A letter to Jim Sinclair and his reply:

Dear Jim,

My grandmother had a jar filled with gold coins. In 1940 the Germans occupied the country and demanded everyone to exchange their gold coins for new Third Reich money, which my grandmother wisely ignored. During the war years she kept her family alive essentially by spending one gold coin at a time for food, heating and clothing. At the end of the war she had one single gold coin left, which our family still keeps as a treasure. I have my own jar now. I hope I never to have to use it.

CIGA M.

Dear CIGA M,

Why have a physical war on a global basis when it has been handed away to China and Russia?

However the war takes shape, it remains global between the Banksters and the rest of us.

Gold was the answer then. Gold is the answer now.

Respectfully,
Hal's insight:

This letter gave me chills. I sincerely hope we never experience this again but my mind is telling me the possibility is strong.

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What Did You Expect From The Fed? « Jim Sinclair's Mineset

From the desk of Jim Sinclair:

My Dear Friends,

Take a moment to research the MSM MOPE on why the fiscal cliff was voted on when it occurred. You will be shocked when you find out it was heralded as a means of keeping a balanced Federal budget. It was a great political achievement then for austerity, and a pending villain now.

What does that tell you about the mindset of our masters? It tells me gold is going to and through $3500. Concerning the Fed today, did you expect anything else?

Respectfully,
Jim
Hal's insight:

Santa remembers. Be mindful of what he says and it will help you to filter the MOPE.

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Gold Does Not Need You Or Me « Jim Sinclair's Mineset

Gold Does Not Need You Or Me « Jim Sinclair's Mineset | Gold and What Moves it. | Scoop.it
Jim Sinclair writes in a short not to his readers today:

"... Right now the geniuses in charge of the ESF are driving gold via the paper market directly into Eastern hands. There is much speculation about the amount of Gold the USA holds and its deliverability as much gold and silver was used in the Manhattan Project and no audit has ever been carried out.

"The gold price will in the not too distant future go through the cap and that will take it to full valuation above $3500. If you’re speculating in gold in futures without at least 20 years of positive history and training as or under a professional you have a financial death wish.

"If your reason for owning gold and silver is an exchange failure you are fundamentally challenged.

"The volatility in gold and counter intuitive moves, thanks to Goldman as broker for the Exchange Stabilization fund investor, will migrate back to good gold shares with the real beef. ..."
Hal's insight:

Santa knows and has his naughty and nice list.

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The Price Of Gold Is Headed Much Higher - Here's Why

The Basel III Accord (BA3) is scheduled to be implemented starting in January 2013. As part of this agreement, gold will be elevated to a tier 1 bank reserve asset. Because of this, gold will be de facto reasserted into the global financial system as a currency. This should add a new dimension to the ongoing bull market in gold and silver, as banks globally now have incentive to accumulate and hold gold as a valuable, liquid asset which can be leveraged as an operating asset.

The BA3 is the latest iteration of a global regulatory standard that governs bank capital and risk exposure. To summarize, BA3 will require banks globally to hold a higher amount of capital as "reserve" capital. This reserve capital is what theoretically buffers banks from the volatility and risk embedded in holding business assets. Reserve capital is the foundation upon which the fractional banking system rests. You can read a good summary of what BA3 does here: Basel III Accord.

The most interesting aspect of BA3 from my perspective as a precious metals investor is that it elevates the reserve status of gold from Tier 3 to Tier 1. A Tier 3 asset can only use 50% of its assessed market value to count as part of a bank's capital reserve valuation. This is typically for illiquid, hard to value assets like OTC derivatives. With a Tier 1 asset, the bank can count 100% of the asset's value toward its reserve calculation. The Tier 1 status is used sparingly for the most liquid, easy to value assets in the world: cash, coins and highly-rated sovereign-issued bonds (Treasuries, etc) -- and now gold.

That BA3 elevates gold to the Tier 1 status is highly significant to precious metals investors because it de facto imbues gold with currency status. ...
Hal's insight:

worthy read.

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“Holy Grail” Gold Evidence Panics Western Central Banks

“Holy Grail” Gold Evidence Panics Western Central Banks | Gold and What Moves it. | Scoop.it
Today King World News wanted to discuss what has been termed as the ‘Holy Grail’ of evidence which implicates Western central banks in actively manipulating the gold market. This has Western central banks deeply troubled because the information was never supposed to become public. Chris Powell, who has been focused on uncovering this type of sensitive information for 15 years, told KWN, “This is as authoritative (an admission) as we are likely ever going to get that central banks are actively involved, in secret, in the gold market.

“Eric, this is a report written to the executive board of the International Monetary Fund from March 1999 about the efforts of the IMF staff to improve accountability in world central bank accounting. The report explains how the IMF staff proposed to require central banks to distinguish their gold loans and gold swaps from their gold reserves so the world could see exactly how Western central bank gold reserves were disposed.

"The report goes on to explain that when the central banks saw that accountability would be demanded of them for their gold loans and swaps, they panicked. The report says that the central banks surveyed by the IMF staff objected to this precise accounting of their gold reserves.

"They said disclosure of gold loans and swaps would be what they called, ‘Highly market sensitive and disclosure would interfere with their secret interventions in the currency markets.’ ..."
Hal's insight:

Click through for the rest.

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