Precious Metals in the News

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PostPosted: Sat Jun 06, 2015 10:26 pm
I LOL'd at "Lady products"
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PostPosted: Sat Jun 06, 2015 10:40 pm
Venezuela's gold

Venezuela is one of those rare Latin American countries that has 70.6% of its foreign reserves held in gold. 366 tonnes of it. In 2011, the country made the surprise decision to repatriate -- bring home -- large volumes of gold from vaults in NYC and other money centers.
http://www.goldcore.com/us/gold-blog/ve ... -how-long/

Since the country's economy has been trashed by socialism from the leadership and meddling from abroad, it desperately needs some cash. Venezuela decided to 'swap' 1.4 million ounces of gold for a billion bucks. Who was kind enough to swap for their yellow stuff? Citibank, one of the top 3 giant commercial banks based out of NYC. If the price of oil doesn't jump soon, I would imagine Citibank will be proposing to take another million ounces of mellow yellow from Venezuela's hands. That's if the Chinese don't get it first.

http://www.reuters.com/article/2015/04/ ... TY20150424
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PostPosted: Sat Jun 06, 2015 10:52 pm
JasonNC wrote:Being unable to afford large amounts of gold (or even small amounts) I'm stocking up on Toilet paper to use as currency once our post-apocalyptic future arrives.


If you actually want to diversify a small fraction of whatever emergency funds you have into bullion, consider silver as well as supplies for your family. The American Eagle one-ounce coin is comparatively cheap and well respected in every state. It's an alternative currency ready to happen, alongside good ol fashion barter.

These days, an Eagle is cheaper than a 6" action figure by a few bucks. on the markets silver follows gold, in exaggerated arcs. So if gold goes up 2%, silver might leap as high as 5%. And vice versa on the falls.
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PostPosted: Mon Jun 22, 2015 12:22 am
A senior manager for Fidelity Funds unexpectedly starts talking like a cash and bullion survivalist

http://www.telegraph.co.uk/finance/pers ... agers.html

Ian Spreadbury, who invests more than £4bn of investors’ money across a handful of bond funds for Fidelity, including the flagship Moneybuilder Income fund, is concerned that a “systemic event” could rock markets, possibly similar in magnitude to the financial crisis of 2008, which began in Britain with a run on Northern Rock.


The best strategy to deal with this, he said, was for investors to spread their money widely into different assets, including gold and silver, as well as cash in savings accounts. But he went further, suggesting it was wise to hold some “physical cash”, an unusual suggestion from a mainstream fund manager.

His concern is that global debt – particularly mortgage debt – has been pumped up to record levels, made possible by exceptionally low interest rates that could soon end, and he is unsure how well banks could cope with the shocks that may await.

He pointed out that a saver was covered only up to £85,000 per bank under the Financial Services Compensation Scheme – which is effectively unfunded – and that the Government has said it will not rescue banks in future, hence his suggestion that some money should be held in physical cash.

He declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10. The current woes of Greece, which may crash out of the euro, already has many market watchers concerned.


As I post this, bank deposits in Greece are being rapidly drained by citizens. We're talking the life savings of millions of people. They feel more secure with their money out of the banks, as the economy goes haywire and capital controls (power exercised over their money) is enacted.

I agree with the Fidelity senior manager. Get some cash in the bank that's not tied up in long term deposits. Get some physical cash hidden and secured. Finally, if you can't get any gold, at least get some silver coins. Silver is the common man's friend, and relatively speaking, it's a bargain at the moment.

Don't put all your faith in the electronic money system. If capital controls are ever enacted, electronic money is the first thing to get hit by capital controls. Transactions can be limited and regulated.

“The message is diversification. Think about holding other assets. That could mean precious metals, it could mean physical currencies.”


When things might go teats up:

He declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10.


From what I've read, after sifting through all the comments and rumours, the majority of financial people who are anxious about the bad global scenario created by governments and banks are settling on "within five years" as a rough estimate for when a major shock might happen. Others are saying as early as Fall 2015.

I have no idea, but I've been following this guy's advice (diversification and emergency reserves) long before I ever became aware of him.
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PostPosted: Sun Jul 05, 2015 1:16 pm
Citigroup Just Cornered The "Precious Metals" Derivatives Market

http://www.zerohedge.com/news/2015-07-0 ... -soar-1260

After JP Morgan Chase raised its exposure to commodity derivatives by a whopping 96% to $4 trillion in bets, Citibank has made a similar big move.

Here is the chart showing Citigroup's Precious Metals exposure over the past 4 years (mostly silver now that gold is lumped in with foreign exchange stats). Of note: the 1260% increase in Precious Metals derivative holdings in the past quarter, from just $3.9 billion to $53 billion!

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Soaring from just 17.4% to over 70%, there is just one word for what Citigroup has done to what the Precious Metals ex Gold (i.e., almost exclusively silver) derivatives market.

Cornering.


So JPM has accumulated tons of physical silver, perhaps cornering the physical market, and Citibank has accumulated tons of derivatives, cornering the 'paper' silver market.

Clearly at least some collusion going on, but how far? What is their goal? And the big question is this: Is Citibank using its silver derivatives (casino bets) to

1) go short (depress the price)
2) go long (increase the price)
3) go sideways/stagnant

Nobody knows. All we know is that these banks are in control; they have a much clearer picture of what might happen; and their influence will have a major effect on the fate of silver. Not some organic free market in which millions of unrelated individuals are placing their bets.
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PostPosted: Tue Jul 21, 2015 2:06 am
Some powerful forces are messing with precious metals again, in very fast and furious ways

July 20

Gold, Precious Metals Flash Crash Following $2.7 Billion Notional Dump
http://www.zerohedge.com/news/2015-07-1 ... ional-dump

We bring this up because moments ago, just before 9:30pm Eastern time or right as China opened for trading, gold (as well as platinum, silver, and virtually all precious metals) flashed crashed when "someone" sold $2.7 billion notional in gold, resulting in a 4.2% or about $50 to just over $1,086/oz, the lowest level since March 2010.


High frequency trading algorithm messing with $2.7 billion. Who? Citigroup? JPM? BIS in Europe? Chinese trader trying to dump to cover equity losses?

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Last Night's Gold Slam So Furious It Halted The Market Not Once But Twice, And The Funniest "Explanation" Yet
http://www.zerohedge.com/news/2015-07-2 ... est-explan

For those following the gold market, last night's event was not surprising: after all just on this website we have documented at least three occasions when furious algorithmic gold selling broke the gold futures market for at least 10 seconds, to wit:

September 12, 2013: Vicious Gold Slamdown Breaks Gold Market For 20 Seconds
October 11, 2013: "Stop Logic" Gold Slam Was So Furious It Shut Down CME Trading Again
and January 6, 2014: Gold Flash Crashes, Halts Trading As "Velocity Logic" Circuit Breakers Triggered


$550 Million Gold Futures Notional Dumped After Close - Back Below $1100
http://www.zerohedge.com/news/2015-07-2 ... below-1100

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PostPosted: Tue Jul 21, 2015 2:34 am
The knives are out on precious metals, as the Western media continues to tell its audience that they are a bad investment

Meanwhile....

China reveals a 57 percent jump in gold reserves and overtakes Russia to become the country with the fifth-largest stash of the metal
http://www.bloomberg.com/news/articles/ ... since-2009

So gold is bad and prices are falling, so why did China just declare a 57% (600 ton) increase? Partially, it's to generate a bit of confidence in the wonky Chinese economy.

But the truth may be crazier. Look at these Chinese stats on gold and consider that the ChiComs are understating their actual holdings:
http://www.zerohedge.com/news/2015-07-2 ... ssing-gold

For instance, some really wealthy folks have taken delivery of 9,000 tons of gold right off the Shanghai exchange in just a few years. Likewise, gold imports via Hong Kong are in the thousands of tons over a few years.

There is solid evidence that the Chinese government and its state banks have accumulated mega tons. In the long game, gold is a trump card, a possible Ace. There's no need to show your hand until all the betting and posturing is over. There's no need for China to reveal its full gold tonnage at this time.

At these prices, it will be buying lots more.

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PostPosted: Fri Jul 24, 2015 10:25 pm
Gold and silver are tanking on the paper markets. Not the physical markets.

Paper = rich traders fiddling with notional futures contracts, ETFs, and exotic derivatives. They never, ever see an ounce of gold or silver. Physical = real solid gold in your hand.

Silver is tanking on paper even as the US and UK Mints were running out of physical product.

Gold is also tanking even as the US Mint is recording a two year high in sales of gold coins:
http://www.zerohedge.com/news/2015-07-2 ... e-year-low

How is the paper price of gold getting manipulated? There's all sorts of different ways.

I found a whole new example I never heard of until now: It's called Spoofing and it happened today (July 24):
http://www.zerohedge.com/news/2015-07-2 ... ld-futures

The commodity exchange's regulatory officer even admitted it happened earlier on April 30, 2015:
http://www.cmegroup.com/tools-informati ... geNumber=1

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I actually feel thankful the price is being manipulated down. I need another coin at a cheaper price!
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PostPosted: Wed Jul 29, 2015 10:50 pm
The war on gold, and perhaps one of the best buying opportunities about to begin

Analysis of four mainstream articles discouraging and ridiculing gold as a store of wealth:
http://www.zerohedge.com/news/2015-07-2 ... -you-think

Pet rock. Weird relic. Gold bugs are nuts. Out of fashion. Lost its charisma. Based on faith.

Notice a pattern in the choice of words?

The mainstream analysis of gold has gone from rational to aggressive and emotional. That's interesting, as the pressure cranks up. The sober economists (not paid to write a hit-piece for a major corporation) know that there has been a quiet war on gold for some time. Don't get me wrong. These people trying to suppress the price of gold and discourage common people from owning are actually peddling their propaganda messages on behalf of massive hoarders of gold.

Governments and central banks desperately want more and more gold, or at least they will not sell what they have hoarded. However, Western powers are also happy to broadcast that it's no good. Not too long ago, gold was only for the wealthy, unavailable to common people. They want to get back to that time.

I predict the price of gold will be manipulated, directly and indirectly, down perhaps all the way to in and around $800/ounce. There will be non-stop articles on what a crap investment it is. It will stay there for only a while, because it will be difficult to hold the market down for too long; just long enough to shake out all the demoralized loose hands and cash-needy debtors in the poker game. Meanwhile, the smart money will be buying gold non-stop as if there's a fire sale going on. There will be so many purchases that scarcity of the physical coins and bars will become pronounced, driving up commissions and eventually index prices. Everyone from Dr Dan the Dentist to JP Morgan and Chinese banks will be loading up the truck until the power of scarcity and demand will be overwhelming.

This may be an incredible opportunity for the average person to buy a coin or three. This may be the final part of the artificial bear market on gold, before the real consequences of all the world's debt, bad spending, bad stocks, derivatives, and mismanaged accounts start to let themselves be felt. This may be when the smart money follows Alan Greenspan's advice and puts genuine trust in at least some gold over funny money. If the $USD is to survive for a while longer and they can do another round of QE (money-printing), gold (the 5000 yr old alternative which has won against every single currency before) must take a few more beatings. But, in the end, the major currencies won't survive the debts and stock market fictions and so forth.

Gold has no counter-party risk and no need for collateral. It is inherent wealth unto itself, incredibly rare, which is why the wealthy and powerful accumulate it. The labour used to bring it to market is considerable; and no more gold can be produced at a profit if the production cost threshold is breached.

Whereas paper assets are commonly built on next to nothing, pretty bags of debt, and money can be printed until it is essentially more useful as fuel for a fire than real units of wealth.

My theory: After everything goes to hell over time, the elites will bring in their new (world order) currencies. They will be stable, perhaps even collateralized to gold. And you will be able to get a lot of new 'whatever' currency bills in trade for the gold you stashed. The people who didn't save any real assets will be in trouble.
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PostPosted: Fri Jul 31, 2015 8:58 pm
The math behind the coming gold and silver squeeze


The price of commodities will be going down further. Not only is demand taking a temporary hit because of overt, organic market disruptions (such as implosions in China and Europe), there's been various covert events which have manipulated and will continue to manipulate the price of commodities downward. During this period, the US dollar will be safe and reign as king, despite the fact that such triumphalism is built on nothing.

While the market is wildly distorted and often fake, true market forces of supply and demand still obviously exist and will never be fully conquered. In particular, let's look at gold.

Depending on the mining producer, it takes on average $1000 to $1080 USD of total "all in sustaining costs" for a mining corporation to bring one single ounce of gold to the market.
Source: http://www.theglobeandmail.com/globe-in ... e20709844/

There's another metric too. It's called the "all-in cost", which puts the break-even cost for the average miner at roughly $1150 to $1200.

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Here's a much more detailed explanation of the metrics, going into the financial affairs of certain large mining companies:
https://www.explorationinsights.com/peb ... relid=3443
http://business.financialpost.com/news/ ... ce-of-gold

Analysis:
http://www.zerohedge.com/news/2015-07-3 ... eet-demand

While gold is tanking on notional paper, gold demand is still very strong in terms of customers buying physical (in your hand) coins and bars. Falling prices are emboldening the smart money to buy (while scaring off most other investors who want insta yield). But if gold is manipulated to $800/ounce or worse, and the financial media is heavily cursing it to that level, corporations will gradually stop bringing product to the market altogether. They'd be losing with every ounce sold. In fact, many are losing now and only selling to service debts and keep mines open at a minimal operation level.

Conclusion: Scarcity of supply coupled with rising demand on a manipulated low price will eventually create a massive spike in price.

I don't think former Fed chairman Alan Greenspan was kidding. Within 4-5 years, gold is going to be huge and unattainable for the average person. I can't predict a price per ounce. Just think: a whole lot higher in relative terms to the $USD.
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