Precious Metals in the News

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AJ Research Dept
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PostPosted: Wed Sep 16, 2015 2:38 am
Where all the shiny pet rocks go?

Strange how gold sucks so much, at least according to the media and manipulated markets, even as the buying and the shortages continue unabated.

http://www.zerohedge.com/news/2015-09-1 ... rable-gold

In the USA, gold traders take future deliveries from the COMEX. The gold in that thar warehouse is running out, and needs resupply. Lucky for the COMEX, every contract of gold not delivered means a cash settlement.
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In addition: "today's latest ongoing reduction in deliverable Comex gold means that as of yesterday's close, there was a record 252 ounces of gold paper claims to every gold physical ounce of currently available and deliverable gold." This has never been seem before. It's a super squeeze on shiny pet rocks.

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If only a small fraction of futures traders wanted actual gold delivery from their contracts at the same time, the Comex would seize up and have a heart attack. Imagine a hypothetical bank with 252 customers. The bank has money on hand (collateral) so that 1 customer could fully withdraw his full deposit. The other 251 customers wouldn't be able to. All the other deposits are loaned out and thus imaginary at the moment until the bank can get real money back to satisfy customers.

The current books of the Comex are similar, but -- like always -- they will acquire gold from somewhere to magically make up the scarcity. Recently, when gold hasn't been found in time to satisfy futures contracts, customers are told to stop whining, forget the gold, and just take cash.
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PostPosted: Mon Nov 09, 2015 2:57 am
This is why many people buy precious metals

"US Debt Is 3 Times More Than You Think" Warns Former Chief US Accountant
http://www.zerohedge.com/news/2015-11-0 ... have-lost-

There's only one way to accommodate such a mountain of growing debt obligations. It can't be taxed into submission. It can't be tamed by attracting more of the world's creditors. Money will eventually be printed in amounts not yet seen before through direct monetization. The debasing of the dollar (inflating of the money supply) will be significant, so that all these bills can be paid.

Precious metals can't be printed in mass amounts (or conjured from nothing and digitized into 1s and 0s on computer screens). So it stands to reason that price suppression will eventually give way to proper market price discovery.

Like other commodities, gold and silver are still scheduled to fall further in this strong-dollar environment... until they can't anymore and the dollar stumbles. Money is like water, and more and more amounts will eventually find the leaks and break the dams and fill up available asset classes of genuine physical value.

If it doesn't, then the central planners have the market more gamed than we think.
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PostPosted: Fri Feb 12, 2016 2:35 am
Canada just went full retard and sold nearly all of its gold
http://globalnews.ca/news/2508940/canad ... -reserves/

My country once had 1000 tons of gold. It happened to assemble this wonderful treasure trove in a time parallel with a period of great prosperity. 1955-1970. We had a big middle-class, tons of jobs, low debt, a good trade surplus, a functional social welfare system, and a strong currency. Gold as a symptom of health? I think so.

Now, after yet another round of selling, Canada is almost out of gold reserves, with only 0.62 tons left. That represents well less than 1% of our foreign exchange reserves. The small amount of gold left also equals an extremely tiny fraction, in terms of collateral, backing the total amount of CAD dollars in circulation. No gold. And our oil and gas exports are in the toilet. So Loonies are now chump change. We have exported our gold, the most important collateral to support our currency, and vastly raised our imports of debt.

Great planning, eh? No one can be this incompetent. Even the USA and most European countries have wisely hoarded their gold. I think the people in Ottawa pretending to say they're "on guard for thee" are actually thinking of a longterm economic union with the USA.

Where do I pick up my greenbacks, my welfare check, my food stamps, and take my oath to the military industrial circus?
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PostPosted: Fri Feb 12, 2016 3:06 am
As Canada sells its stash of one of the most sought after metals in the world, people around the world are lining up to buy the yellow stuff

http://www.zerohedge.com/news/2016-02-1 ... s-physical

I'm praying for one more mini-crash, a big insider manipulation to suppress the price, so I can convert some Loonie Tunes Canadian money into another supernova coin. But I think this may be lift off, Houston. With all other investments sucking, gold is suddenly turning on the jets and won't see significant drops in a while.

Investors 'go bananas' for gold bars as global stock markets tumble
http://www.telegraph.co.uk/finance/pers ... umble.html

Small private investors, int'l funds, central banks, and hoards of Chinese are scooping it up.
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PostPosted: Fri Mar 04, 2016 12:14 am
As of Feb 2016, Canada has liquidated its gold reserves

The Government of Canada sold 21,851 ounces of gold coins for settlement in February. On February 29, gold holdings stood at 77 ounces. The valuation is based on the February 29, 2016, London p.m. fix of US$1,234.90 per ounce.


Worst move ever. While some debtor Western nations wisely refuse to sell even an ounce of gold, others like Canada are liquidating as if gold is yesterday's fad. Yesterday being approximately a 5000 year period.

Canada is a resource colony for corporations. We're a one-trick pony. Mining, oil & gas, lumber, potash, wheat, etc.. All of these are in the toilet, due to global demand destruction in commodities. Canada has rising public debts, and even bigger household debts. The falling commodity revenues pay for our bloated bureaucracies and gov services. If signs of economic distress advance much farther in Canada, the Bank of Canada and federal government will be unable to support the Loonie's value by selling its stash of paper currency reserves.

We really need that 1000 tons of gold we squandered away over the years.

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PostPosted: Sun Apr 03, 2016 4:46 pm
Russia and China continue to assemble their dragon hoards of gold


In January 2016 the Russian Central Bank again bought 22 tons of gold, around $800 million at current exchange rates.

It bought 356,000 ounces of the precious metal in February 2016, according to the International Monetary Fund (IMF).

China follows Russia with about 320,000 ounces of gold bought in February 2016, according to the Chinese Central Bank.


http://www.dailynews.lk/?q=2016/04/04/business/78205


Between March 11 and 18, the Russians increased their gold and foreign exchange reserves by almost $6 billion.

In mid-December 2015, the Russian Central Bank announced that it would increase Russia’s gold reserves to $500 billion in the coming three-five years.

http://sputniknews.com/business/2016032 ... erves.html


These guys certainly have a rainy day fund planned out. In the future... are we going to see a hurricane, so to speak, or just some bad weather?
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PostPosted: Thu Apr 14, 2016 10:34 pm
Shocking and yet no so shocking

Deutsche Bank Admits It Rigged Gold Prices, Agrees To Expose Other Manipulators
http://www.zerohedge.com/news/2016-04-1 ... l-settleme

Deutsche Bank Confirms Silver Market Manipulation In Legal Settlement, Agrees To Expose Other Banks
http://www.zerohedge.com/news/2016-04-1 ... ment-agree


Deutsche Bank is one of the top multinational banks, and has had a strong hand in trading commodities. Conspiracy theorists have been justified again, after the courts have extracted a confession that banks such as Deutsche, Bank of Nova Scotia, HSBC Holdings, and others have illegally conspired to rig the precious metal markets.

Issues remain.

Did the bullion banks behave as proxies to help other parties? Are those parties central banks, trying to defend their hyper issuance of paper money? Are bullion banks and central banks one and the same behind the layers?

What will senior federal regulators do now, seeing that most are former bank employees? Finding guilt is one thing. Implementing punishment and reform are quite different.

Will silver and gold find natural price discovery? Or will new manipulators step in?
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PostPosted: Sat Apr 16, 2016 11:46 pm
Jim Rickards, gold, money, SDRs, and China

I have yet to read any of his books, though they seem insightful. It's also nice to know he's certainly no fringe theorist. Instead, Rickards appears to be an insider and a man with a lot of experience in the field of monetary and financial affairs.

https://en.wikipedia.org/wiki/James_Rickards

http://www.amazon.com/s/ref=nb_sb_noss/ ... m+Rickards


From what little I've read, Rickards argues that China is intent on gathering an amount of gold reserves equal to or surpassing those of the world's biggest holders (America and certain European countries). He writes that the insiders know the current global status quo will collapse soon enough. After collapse, there will be a reset of the global order. Gold, in massive amounts, will be the new chips at the poker table (actually returning the world to the older game). The PBOC (People's Bank of China) wants, and will get, a big boy seat at the IMF, where it will use its gold as collateral (like the advanced countries will also) to join the IMF's next evolution in the SDR (or XDR) system.

SDR system = https://en.wikipedia.org/wiki/Special_drawing_rights

Presently held only by central banks as an alternative and trustworthy form of 'unit of account', the SDR is widely suspected to be the embryonic basis of a global currency in the future. Most different money will be based on this money, which will in turn be pegged to gold.

The current SDR arrangement is based on a basket of the strongest currencies issued by the following central banks: the Federal Reserve (dollar), ECB (Euro), Bank of England (Pound), and BoJ (Yen). The People's Bank of China (PBOC) will join the SDR system in October 2016 by submitting the Yuan. Given its estimated gold reserves, which are at least double its official numbers, the PBOC will be the 3rd largest holder at the table.

Since China has been blocked from trading its vast hoard of $USD and US Treasuries for SDRs long ago, it's logical to see why they are on a mission to accumulate vast amounts of gold, which can be used to get a higher stool at the SDR/IMF table.


The SDR thing has been talked and theorized about for many years. Where it's all going to go is still obviously uncertain.
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