The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label markets. Show all posts
Showing posts with label markets. Show all posts

Sunday, June 4, 2017

Despite gold and silver prices being below their 2016 highs, each has done better than the S&P; 500 in 2017

With all eyes being on both cryptocurrencies and equity markets here at the halfway point of 2017, gold and silver have themselves proven to also be a positive investment despite the fact that they have not even reached their 2016 highs.  And while the three primary equity markets have all reached historic all-time highs at some point this year, it is interesting to note that both gold and silver have actually done better than the returns one would have received from investing in the S&P 500.

Since the U.S. presidential election, the stock market has remained strong, but what has surprised some financial analysts has been that the precious metals complex has been ever stronger, says Blanchard President and CEO David Beahm. 
“What is notable through the end of May is that gold and silver continue to outpace the strength in the stock market, leaving both precious metals very well-positioned for strong new rally waves if stocks turn lower in a seasonal correction phase or a bear cycle move,” Beahm says. “Typically, gold and silver perform well during periods of stock market weakness, but the fact that metals are climbing alongside the strength in stocks is notable from a historical perspective. It reveals that there is a strong safe-haven bid for metals and a desire to diversify away from stocks in the current environment.” 
The Blanchard Index 
Here’s how the market performance stacks up through late May: 
  • Gold +9.45%
  • Silver +8.13%
  • S&P 500 +7.91% - Seeking Alpha
Yet perhaps the most important technical indicator to look at going forward between the two markets is the fact that the P/E ratios for the S&P 500 are at nearly double their historic averages while gold and silver are more than 40 and 65% respectively below their all-time highs.  And this means that the far better investment right now is in the precious metals, especially as sovereign debt levels and currencies begin to show immense signs of weakness, and underlying supplies for the metals are reaching critical levels.

Thursday, June 1, 2017

Gold price rises for fifth consecutive month as streak continues at best rate since 2010

Despite just barely closing above it's April 30 price, gold has now had five consecutive months of positive gains, and the longest monthly streak since back in 2010.

Gold closed out the month of May at just under $1269, and successfully held onto both its 50 day, and 200 day moving averages.  And with economic and geo-political events continuing to create turmoil in both currencies and the global markets, expectations for gold going higher are strong according to most fundamental and technical charts.

Gold has eked out its longest monthly winning streak since 2010 in May. The precious metal advanced 0.05 per cent for the month of May to $1,268.92 a troy ounce — its fifth consecutive monthly advance, a feat it last accomplished six-and-a-half-years ago. 
Sentiment on gold was also lifted over the month as the US dollar weakened. Indeed, the dollar index, a gauge of the greenback against six peers, slid 2.1 per cent over the month. Weakness in the currency makes gold, which is dollar denominated, cheaper for foreign buyers. - Financial Times

Tuesday, May 23, 2017

Gold signals potential breakout as price once again achieves golden cross technical

In today's world, if all markets were freely traded then fundamentals and technicals would actually mean something to traders and investors.  However, with most major banks having been found guilty over the past five years of rigging almost every market, and the Federal Reserve assuring that equity markets will never go down any real extent due to trillions in cheap money, the once long-standing indicators of bullish and bearish sentiments are only relevant to the most ardent of investors.

But with that being said there are still thousands of analysts and traders who rely heavily upon technical analysis to make investing decisions and forecast market direction for a given asset class.  And on May 22 one of these technicals moved positive after weeks of price declines to have once again achieved the signal of a golden cross.

And the asset which has signaled this bullish sentiment and technical move is gold.

Gold is up nearly 10 percent this year and might be primed for more gains if a signal tracked by technical analysts triggered Monday is any guide. 
A small gain was enough to push the metal's 50-day moving average price above the average price of the last 200 days, forming what's known as a "golden cross" in technical analysis circles. This is seen as a positive signal that demonstrates an asset is outperforming so well in the short-term that it may reverse a longer term downtrend. - CNBC

Tuesday, April 25, 2017

As Western paper gold markets slam the price following French elections, demand elsewhere continues to boom

Despite the fact that the dollar has fallen nearly 200 bps since Emmanuel Macron won the first round of elections taking place in France, the price of gold and silver in the Western paper markets has been beaten down, even to the point of them falling back below their 200 day moving averages.  However, this has not slowed down the actual demand for physical gold worldwide as expectations of higher prices are still being forecast in locations like Asia, India, and the burgeoning markets of Dubai.

Dubai: Despite falling to its lowest level in weeks, gold might just continue to stick to its ground and move higher over the next few days, an industry source said.
Gold prices held their levels on Tuesday morning, after posting the biggest decline since March on the initial results of the French elections. 
As of 9.30am, 24K was retailing at Dh155.50 per gram in Dubai, slightly up from Monday’s afternoon trade and about Dh15 higher than in January 2017. 
For those who are awaiting further declines, however, it’s important to note that prices remained volatile and current trends suggest there is more room to move on the upside. 
Factors that could play in favour of gold include the polls in Germany and United Kingdom, as well as upcoming policies by US president Donald Trump. 
“Gold will continue to remain volatile with several global factors like US policies and upcoming German and UK  elections influencing the investment strategies of institutional investors,” Merchant told Gulf News. - Gulf News

Wednesday, February 8, 2017

Did the Shanghai Gold Exchange force London to reveal its reserves and try to compete with a new physical market?

In late 2015, China opened up what would soon become the world's largest physical gold market, leaving both London and New York to hide behind their paper trading futures exchanges.  And as more and more action has moved into the Pacific Rim over the past year and a half, one has to ask the question if this is the reason why London suddenly chose to reveal their physical reserves last weekend, and with the intention of opening up their own physical market to compete with Shanghai?

In a move to increase transparency, London's gold bullion market is considering revealing the amount of bullion held in vaults within the city for the first time in its history. According to recent reporting by the Financial Times, this move would include gold bullion held by the Bank of England as well as other institutions. The leaders in the debate over transparency shifts are the London Bullion Market Association. Why might London be considering such a shift at this point in time, and what could it mean for the future of gold, both in England and around the world? 
According to the report, many of the largest banks around the world are pushing for gold to be traded on an exchange, a marked shift from the current bullion market system. The London Bullion Market Association argues that an exchange would work to convince regulators that "banks trading bullion should not have to face more onerous funding requirements." The reason that this shift is necessary, the Association feels, is that London gold is traded directly between sellers and buyers, meaning that essentially no data of those transactions makes it out into the broader analytical world. The Association has estimated that daily gold trades in London may total $26 billion, although that number is difficult to confirm and there are no official data points to cite. 
The Association believes that moving toward an exchange and documenting the transactions of gold bullion in the city will provide greater transparency. How it might affect the market and the gold bullion prices and trade levels in particular is a bit more difficult to say. If London moves to trade bullion through an exchange, will other cities or countries follow suit? Some analysts believe that this could be the beginning of a much larger trend. - Investopedia
In addition, it is rumored that Dubai is in the process of expanding their physical gold markets following January's inclusion of gold investments into Sharia Law Finance.  And with the potential of millions of new customers seeking to purchase physical gold rather than paper futures, it is likely that several markets will look to cash in on the New Gold Rush, and in doing so will have to forego the years of secrecy that they have cultivated in disallowing true audits of their gold reserves.

Sunday, January 15, 2017

Well respected fund manager sees China raising gold price and using the metal to back Yuan for oil trading

John Hathaway of Tocqueville Gold Fund is a well respected analyst with over 45 years in the markets, and in precious metals.  On Jan. 13 he published his expectations for gold, currencies, and geo-politics in 2017, and is forecasting two interesting events to take place this year.


China looking to dominate world oil trade through a gold backed Yuan
Next is the incorporation of gold as a settlement currency to facilitate trade between oil-producing nations and the world’s largest hydrocarbon importer, China. Russia, Saudi Arabia, and Iran are settling most, if not all, of their energy sales to China in yuan convertible into physical gold via the Shanghai Gold Exchange. That flow represents a significant and growing percentage of international oil commerce, which in turn represents a dominant share of all commodities. - King World News
China preparing to radically reprice gold higher
We believe that this development has negative implications for the petrodollar system that has underpinned the dollar’s dominance in global commerce since the 1970s. Physical settlement, as opposed to paper (cash-settled) gold contracts, ramps up the migration of physical metal to Asian owners. Gold has become a reserve asset that is preferred to US Treasuries. Comments below by Xu Luode, chairman of the Shanghai Gold Exchange, show that the Chinese have made no secret of their strategy to internationalize the renminbi through gold convertibility in order to displace the US dollar: 
"Foreign investors can directly use offshore yuan to trade gold on the SGE international board, which is promoting the internationalization of the renminbi…Shanghai Gold will change the current gold market “consumption in the East priced in the West” situation. When China will have a right to speak in the international gold market, pricing will get revealed… (Xu Luode, speech to LBMA, May 2014)"
Since November of last year, the Shanghai Gold Exchange has already begun to disconnect its price fixing from the London and New York markets, with some daily spreads reaching as high as $49 per ounce.  This will continue to occur, and most probably accelerate in light of the revelations provided by Deutsche Bank and Wikileaks on the fact that Western banks have been manipulating the price of gold for decades.

Tuesday, January 10, 2017

Gold should go much higher in 2017 as short covering indicator has always led to rise in price

In this era where nearly everything in the financial system it rigged, manipulated, or controlled by a central bank, common indicators like fundamentals and technicals no longer are of much value when determining what direction an asset will go.

In fact, besides controlling the currency and bond markets through the massaging of interest rates, the equity markets are managed by an entity known as the Exchange Stabilization Fund, and the commodities are rigged through paper contracts in the futures markets.

So when doing one's research on what should be profitable to invest in, it is the direction of the manipulation that is most important, not the data provided on a company's balance sheet.

Ie... Don't Fight the Fed.

Yet with that being said, one of the 'new normal' indicators tied to gold is suddenly rearing its head, and historically has always led to higher prices in every given cycle.

And what is that indicator?  Short covering in the paper gold markets.

But the biggest indicator that gold sentiment is improving is the falling volume of short bets… 
You see, investors are starting to sell their shorts on gold stocks. One of these is NovaGold Resources Inc. (NYSEMKT: NG), a $1.5 billion gold mining firm whose number of short positions fell 3.8% from 13 million to 12.5 million between November 2016 and December 2016. 
The improving sentiment is also clear from the recent performance of the Gold Bugs Short Index (HUISH). This index tracks the short positions on gold miners that don't hedge their long-term gold production based on gold price movements. It's down 12% in the last month, indicating that short interest in gold companies is falling as well. - Money Morning
Following Donald Trump's victory in the November Presidential election, bullion banks crushed the gold price by dumping nearly three years of global mining output onto the futures markets in just three days.  But after this initial slam, using naked shorts to manipulate the price, these same banks began to cover previous short positions at lower levels and have since continued the process of covering many of their bets.

Gold has moved higher since the start of the new year, and has even begun to disconnect from the dollar as the price has moved higher even on days when the dollar has strengthened.  And as noted in the first paragraph of this article, old indicators no longer work when markets are dictated by the actions of those who manipulate and rig the markets.

Wednesday, December 21, 2016

Global financial markets already creating new gold products for Islam's Sharia finance edict

It was only a couple weeks ago when the Auditing Organization for Islamic Financial Institutions (AAOIFI) began implementation of new edicts regarding gold ownership under Sharia financial law for the world's 1.6 billion Muslims.  And in this short amount of time several markets around the globe are already creating new gold based products to help bring in Islamic investors.

New standards for the use of precious metals in Islamic finance are encouraging the development of financial products based on gold and silver, from futures contracts to a mobile app. 
Toronto-based Bullion Management Group (BMG), which manages $348 million in assets, launched a silver fund in October and expects its bullion funds will adhere to the new AAOIFI guidance, Nick Barisheff, BMG's founder and chief executive, said. 
On Monday, the Singapore Exchange (SGX) said it had certified as sharia-compliant its gold futures contracts, which were originally launched in 2014 and are aimed at the wholesale market. 
Meanwhile, Malaysia-based HelloGold has launched a sharia-compliant online platform using a mobile app, targeting customers through agreements with technology and financial services firms, chief executive Robin Lee said. 
"We expect to sell about 10,000 ounces of sharia-compliant gold by the end of next year," Lee said. He also said that the firm planned to enter Indonesia, the Philippines and Thailand next year and China by 2019. - Reuters

Wednesday, December 14, 2016

At the normal historic 10:1 ratio, gold should be at over $9000 and silver over $1000 to backstop current debt and money supply

As of Nov. 30, the U.S. Department of the Treasury claims in their monthly report that they have a total of 261,498, 926 ounces of gold contained in bullion, coins, blanks, and miscellaneous products.


In addition, the national debt for the United States is approximately $19.8 trillion as of Dec. 1, with $1.48 trillion of that being physical currency in circulation.

Yet the power of the U.S. dollar being the recognized global reserve currency is based upon its being backed by gold, as determined back in the 1940's during the Bretton Woods conference.  And despite the fact that the U.S. Treasury closed the ability for other nations to exchange dollars for gold when former President Richard Nixon closed the 'gold window', it did not stop the caveat that the dollar must be tied to gold in some capacity.

Ie... this is why the Federal Reserve holds reserves in gold even today despite the deception that Fed Chairmen such as Ben Bernanke gave to Congress and the American people that gold is no longer money.

So with this in mind, what should the real price of gold in dollars be today to backstop the current debt and monetary expansion that exists in the global economy?  And just as important, what should the price of silver be if allowed to reside at its historic 10:1 ratio to gold when the manipulation of the metals finally ceases.

For the reported amount of gold the U.S. is believed to hold, the current dollar price to backstop $19.8 trillion in debt would set the price at $75,717.  However, as most of the debt held domestically and offshore is in Treasury Bonds rather than physical cash, let's break it down instead to what the value of gold should be for the amount of actual currency in circulation.

$1.48 trillion / 261,498,926 = $5659 per ounce.

Yet these number are also limited as they reflect simply the bare amount of currency in circulation, but not representing all money used in financial transactions (electronic banking).  So for that we need to look at an approximate number, which is calculated to a relative degree of accuracy by the Debt Clock website, which estimates the current monetary base as being over $3.6 trillion.

$3.61 trillion / 261,498,926 = $13,820 per ounce.

Over time the expansion of the dollar monetary base has become extremely convoluted since its recognition as the global reserve currency.  And this is due to the fact that not only are dollar denominations used as currency, but also bonds and derivatives are considered by many to be as good as money.  So with that in mind we could probably safely put the true price of gold to be somewhere in between the reported amount of dollars in circulation, and the estimated total amount of dollars used between cash and fractional electronic banking.

screen-shot-2016-12-12-at-2-19-49-pm

The invisible hand of the markets will always eventually push asset prices back to their true value, as manipulations can only be done for a finite period of time before they cause distortions elsewhere that lead to financial calamities... as we are seeing right now in the monetary distortions occurring in both India and Venezuela.

So how long can the government suppress gold and silver prices to protect their dollar expansion, and keep the true price from breaking through in the markets?  No one really has an answer to this but historically, no fiat currency system has ever survived to 50 years of use, and we are now within the final five years of that mean.

Wednesday, December 7, 2016

Despite fall in paper price, gold demand at 5 year high as fears of a supply shortage causing global scramble for the metal

By now most precious metals investors should have realized that the old standard 'spot price' that once dominated gold and silver is on its way out, and acts as little more than a paper value for derivative contracts.  And this can be seen by the price divergence in spreads between the London Fix, and its competition over in China at the Shanghai market.

But until the London/Comex price is gone for good it still controls the buying and selling costs here in the West.  And thanks to the tremendous shorting that has occurred in the paper markets since the Presidential election that took place on Nov. 8, the over $200 drop in price has done little to depress the appetite of gold purchases as the month of November saw the highest amount of buying in the last five years.
Gold demand in November soared to its highest level since the end of 2011 as investors took advantage of a steep drop in prices for the yellow metal following Donald Trump’s win in the U.S. election, according to data from BullionVault released Tuesday. 
The Gold Investor Index, run by Internet-based metals exchange operator BullionVault, jumped to 59.3 in November—its highest level since December 2011. the index stood at 56.8 in October. - Marketwatch
What is making up this increased demand for gold are not just China and Russia, who have continued their massive buying of gold through November of this year, but the inclusion of several other nations such as Britain, Vietnam, the U.S., and of course, India, who have joined in to start exchanging their currencies for gold in their reserves.

Much of this buying is also coming from the fact that outside the dollar, people are losing confidence in global currencies, especially after this year's Brexit event, Venezuelan hyperinflation, and the more recent attack on cash by India's Prime Minister Modi.  And the increase in purchasing worldwide has suddenly revealed incredible shortages that could soon be the catalyst for breaking Comex control over their depressing the spot price of gold.
“For the first time in history, gold supply into the future is under enormous pressure.” The warning from Mark Bristow, chief executive of London-listed Randgold, encapsulates the gold mining sector’s woes. 
Bullion’s only modest price recovery this year compared with other commodities has led the industry to cut spending on exploration dramatically to less than $4bn from almost $10bn in 2012. 
Petropavlovsk, a gold miner with assets in Russia, is a case in point. It has cut its exploration budget by two-thirds. 
“There is a chronic shortage of exploration money and as usual the gold price is not acting in the way everyone thought it would do,” says Peter Hambro, chairman of the company. 
This backdrop has left many in the industry forecasting a supply shortage by the end of the decade. - Financial Times
As an investor it is not the time to be fooled by the paper selloffs or shorting that is occurring in the Comex and other Western markets, but rather a time to take a serious look at supply and demand, and the consequences of dying confidence in most global currencies.  Because the lowered price that is also being coupled with dwindling supply right now is a an opportunity of the decade for the precious metals, and should prove to be very profitable once the world moves completely away from London and New York's control over the market.

Thursday, November 10, 2016

Europe, not the U.S., were the biggest buyers of gold after Donald Trump won the presidency

As the election counts began coming in on the evening of Nov. 8, the markets reacted chaotically as the night wore on to the reality that Donald Trump victory was going to be the next President of the United States.  And this market turmoil led to the dollar, stocks, and gold all moving in extreme opposition to what the markets had anticipated when they closed for business on Tuesday.

Yet the most interesting thing occurred within hours of seeing the Dow futures down 840 points, the dollar down 300 bps, and gold up $61... these markets all reversed and by the time trading was over on Wednesday gold had lost all of its gains, the dollar had recovered all of its losses and more, and stocks closed well into the green.

So the question then remains is, does a Trump victory mean the end to the gold bull market, or was this 'recovery' a last ditch effort by the Fed and Treasury to prop up paper markets?

Perhaps the answer lies over in Europe where following the Trump victory gold sales all across the continent were occurring at a record pace.

Spot gold prices surged nearly 5 percent with Donald Trump's surprise U.S. presidential election win spurring purchases of physical gold 
The flurry of buying on physical markets mostly took place in Europe, after Trump's victory was declared, when the price of spot gold surged by nearly 5 percent to a six-week high of $1,337.40 an ounce. 
Gold gave up gains during U.S. trading and turned slightly negative, as the dollar moved higher and Wall Street stocks rose sharply. [MKTS/GLOB] 
"Overnight, there has been a tremendous increase in our sales," said Oliver Heuschuch, head of trading for Degussa's gold business, one of the biggest German physical dealers. 
"It's nearly treble the size of regular business."
Ahead of the election, analysts widely expected that a Trump victory would cause gold prices to rally as investors sought refuge in perceived safe-haven assets such as gold. 
Demand for physical gold and silver in the United States rose in the weeks prior to the vote, but in contrast to Europe there was little sign of buying in the United States on Wednesday. 
"Today's figures are already some of the best on record, even surpassing our performance following the Brexit vote," said Chris Howard, director of bullion at the United 
Kingdom's Royal Mint, about Signature Gold sales that involve customers buying gold that is stored at the mint. 
The Pure Gold Company in London said its sales spiked 42 percent early on Wednesday versus the prior day. - Reuters

Wednesday, November 9, 2016

As expected, Trump victory drives gold price back over $1300 as global markets uncertain of future

As we at The Daily Economist wrote yesterday, the opportunity for short-term anti-establishment bets in gold, currencies, and the stock markets came to fruition when Donald Trump successfully beat the odds and won the White House early on Wednesday morning.

Starting with his taking of Florida in the early evening, and culminating with his surpassing of 270 electoral votes around 2:30am, global markets treated the Trump victory like a Brexit part two, and gold was definitely a benefactor by rising over 5% at one point.

Gold jumped nearly 5 percent on Wednesday to its strongest in six weeks as investors snapped up safe havens with Republican Donald Trump winning the race for the White House over Democrat Hillary Clinton. 
It marked gold's biggest single-day gain since June 24 when it rose as much as 8 percent when Britain decided to leave the European Union. It closed up 4.8 percent that day. 
A Trump win, which many see could lead to economic and global uncertainty, may also push the U.S. Federal Reserve to hold off from raising interest rates next month, further burnishing gold's draw, analysts say. - CNBC
Despite the fact that Trump will not officially take office for another 72 days, his victory will reverberate around the world's markets for some time as the uncertainty of new fiscal and monetary policies that may or may not be beneficial to Wall Street will have a significant effect on gold going forward.

Monday, October 31, 2016

Shanghai Gold Exchange expands reach into Dubai as the DGCX will now use Yuan benchmark instead of London or Comex

On Oct. 31 China's Shanghai Gold Exchange (SGE) signed an agreement with the Dubai Gold and Commodities Exchange to begin using their Yuan denominated price benchmark instead of the long-standing London and New York gold fix price.

In addition, this new agreement is just the first that the SGE is undertaking with commodity exchanges around the globe as the world's largest physical gold market begins to takeover pricing of metals in more markets.

SGE, world largest physical bullion exchange, says in other talks about similar cooperation 
Shanghai Gold Exchange and Dubai Gold and Commodities Exchange signed an agreement on Friday in Shanghai which makes the DGCX the first foreign exchange to use the SGE's renminbi-denominated gold benchmark. 
The SGE is in talks with other exchanges about similar cooperation, according to an SGE circular. 
SGE is the world's largest physical bullion exchange. The renminbi-denominated gold benchmark, also known as Shanghai Gold was launched in April this year. It is one of China's efforts to earn more say over pricing of the precious metal and increase its influence in the global gold market. 
China is among the world's largest producers, consumers and importers of gold, and it deserves pricing power that matches its position. It should have more say in an industry long dominated by London, which sets global spot prices, said analysts. - China Daily

Wednesday, October 12, 2016

Analysts believe gold demand will continue higher as price expects to hit $1400 by end of year following pullback

The recent pullback, or slam down in the gold price over the past two weeks has done little to stop the demand for gold... as seen by the huge buying of physical metal, as well as ETF paper in the period following gold going down to $1260 from $1330.  And many analysts concur that the manipulated smash in the gold spot price will only continue to fuel this demand, and bring the price to over $1400 before the end of the year.

Gold prices are on the move again, settling at $1,260 per ounce at market close on Monday, according to Apmex
That's after gold prices fell 5% last week, the largest decline in the metal of Midas since 2013. "Gold prices are quite appealing after the recent correction," notes Richard Xu, portfolio manager at China-based HuaAn Gold. "In China, what we see today is that there is some demand to buy gold following its dip." 
Former U.S. Congressman Ron Paul concurred with that assessment in an appearance on CNBC last week. A healthy economy "will be fundamentally good for gold," Paul said. 
Paul says that an ongoing low-interest rate policy by the Federal Reserve will boost gold prices and that the volatile U.S. presidential race, no matter which candidate emerges victorious, won't substantially impact precious metal prices. - The Street

Thursday, October 6, 2016

Federal judge rules in favor of a lawsuit against the LBMA and bullion banks for fraud and manipulation in gold and silver prices

Ever since the 2008 financial crisis, most regulators for all markets have worked with, rather than against the banks that have been found guilty of committing dozens of crimes in the financial system.  From the rigging of currency and Libor rates, money laundering to drug cartels and terrorist organizations, mortgage fraud, and even the most recent instance of millions of cases of identity theft, no one is ever charged with the crimes individuals in these banks commit, and at best are simply fined a small amount compared to the profits they garnered from their fraud.

But on Oct. 3 an interesting ruling came down from a Federal judge for the Southern district of New York where the court ruled in favor of investors that a civil case against central and bullion banks could go forward due to strong evidence of fraud and manipulation in the rigging of gold and silver prices.

MarketSlant has obtained documents regarding the London Gold Fix Scandal currently being litigated in the New York Southern District Court.
They include the Judge's initial findings in the class action suit pitting the LBMA and its member Banks vs. Entities and Individuals that trade Gold and allege they were victims of price manipulation and suppression from January 1, 2004 to June 30, 2013.
In the document dated Oct 3, 2016, presiding Judge Valerie Caproni of the US District Court, Southern District rendered her Opinion and Order in the matter. Judge Caproni has validated that much of the claims have been substantiated and therefore is recommending litigation for many of the claims brought. - Market Slant

Monday, October 3, 2016

New head of the London Gold markets is a former employee of one of the central banks that manipulates gold prices

One of the biggest jokes going around in the U.S. is that the Treasury Department is little more than a 'trading desk' for Goldman Sachs.  That is because several of the most recent Treasury Secretaries have worked for the Wall Street giant, and their touch extends even beyond Washington and into the halls of the European Commission in Belgium.

So with this in mind it should come as no surprise that the new head of the London Gold markets is a former executive with one of the most manipulative central banks against the gold price.

One of the most interesting points in the previous article referred to the very recent appointment of a very recently departed Bank of England senior staff member, and former head of the Bank of England Foreign exchange Division, Paul Fisher, as the new ‘independent‘ chairman of the LBMA Management Committee / ‘Board’. Paul Fisher has also in the past, been the Bank of England’s representative, with observer status, on this very same LBMA Management Committee (now LBMA Board) that he is now becoming independent chairman of. Fisher is replacing outgoing LBMA Board chairman Grant Angwin, who if from Asahi Refining (formerly representing Johnson Matthey). - Bullion Star
The significance of this appointment is that London currently remains the most important gold market in the world, and has the authority to set prices two times a day.  However this power is being threatened very strongly by China, which now has the largest physical gold market in the world based in Shanghai.

And on a side note, it is also extremely interesting to see how most of the world's central banks are treating Deutsche Bank these days, especially in light of the insolvency crisis they are currently experiencing.   After all, they were the ones who informed regulators earlier this year that central banks, including the Bank of England, have been manipulating the price of gold for years.

Tuesday, September 6, 2016

Despite declines in gold price in August, demand for the metal hit a four year high

Now that the summer market doldrums are over following the turning of the calendar on Labor Day, gold is acting as it normally does heading into its biggest price months of the year.

In fact, so far on the first trading day in September, gold is up over $14 and should go much higher very soon since economic data from manufacturing just about assured there will be no Fed rate hike when the FOMC meets later this month.

Live New York Gold Chart [Kitco Inc.]

Yet despite the fact that gold lost some of its gains during August, an interesting statistic emerged on Sept. 6 which puts alot into perspective for the rest of the year.  And that is that demand for gold by individuals hit a four year high last month, meaning that new support is now in the market to take gold much, much higher.
Private investor appetite for gold hit a four-year high last month, swelling net purchases on the BullionVault trading platform by almost half a tonne. 
The financial jitters triggered by the Brexit vote and record low interest rates have spurred demand for the safe-haven commodity over recent months, driving total holdings at BullionVault to 35.7 tonnes. 
Although the number of private buyers slipped 6pc in August, those willing to reduce the holdings they have built up over summer dropped 49pc to boost the net demand. 
As a result BullionVault's Gold Investor Index up to a new 3-year high of 56.0, reaching its highest level since April 2013 from July's 53.4 reading.
Adrian Ash, head of research at BullionVault, said: “Private investors continue to grow their gold holdings against a trend of both rising prices and rising financial risks. 
“Last time net gold investing demand was this strong, prices were retreating hard from the late 2012 rally. August 2016 in contrast marked the fourth time running that average monthly gold prices rose against the dollar, a pattern not seen since the metal peaked with the global financial crisis in summer 2011." - Telegraph

Monday, August 29, 2016

Markets about to enter the best month of the year for gold

Minus this year's huge climb for gold during the first six months of 2016, precious metals almost always run in cycles dependent upon which part of the year it is.  June and July have historically been bad months for gold and silver, primarily because investors 'leave in May and go away' until around Labor Day when market volume once again picks up.

This trend has once again fallen in line as gold has found heavy resistance over the past three months, and has been unable to push through the $1360 level which is the springboard to the next move higher.  But historically that is about to change as we are about to enter into the best month of the year for gold.

Gold bullion has had its biggest gains in September over the past 20 years. Seasonally gold is entering the sweet spot with the Autumn being gold’s best season and with September being gold’s best month in the last 20 years. 
Given the backdrop of one of the most uncertain macroeconomic, systemic, geopolitical and monetary outlooks both the U.S. and the world have ever seen, we are likely to see gold do well in its traditionally seasonal strong period. Possibly, the most vitriolic, hateful and divisive election in U.S. history is set to be witnessed and this will likely lead to considerable volatility in markets and should see the dollar come under pressure. The election date is Tuesday, November 8, 2016. 
The spring and summer months frequently see seasonal weakness, since gold became a traded market in 1971. Gold bullion often sees periods of weakness in the summer doldrum months of May, June and July. 
August tends to be a better month for gold but not this year with gold down nearly 2% in dollar terms, 3% in euro terms and 1.8% in sterling terms. 
Gold’s traditional period of strength is from August through to January and February with weakness and a correction frequently seen in October. Thus, August is generally a good time to buy after the seasonal spring and summer dip. - Goldcore

Sunday, July 24, 2016

Yes Virginia, central banks do manipulate gold prices according to new White Paper

Despite having overwhelming data that the price of gold is manipulated in both the Comex paper markets, and through an elite body of people at the London Gold Fix, economists and central bankers have continuously lied about their involvement in depressing gold as a means to protect their currencies and prop up derivative markets.

But on July 20, a White Paper published by Dirk G. Bauer at the University of Australia School of Business was revised to show just how much central banks use gold price manipulation and the gold carry trade to protect their paper fiat currencies, and keep their managed systems from imploding due to normal market forces.

Central banks hold gold reserves that are designed to build confidence in fiat currency. This confidence is undermined if the price of gold falls significantly or rises significantly. Central banks thus have an incentive to manage the price of gold. Such management is evident in fixed gold prices in the early 20th century, in Central Bank Gold Agreements more recently and in the asymmetric correlation between monthly central bank gold reserve changes and gold price changes. The empirical analysis further analyzes gold lending by central banks, linkages between central banks, bullion banks and mining companies and the gold carry trade. We conclude that coordinated and shadowy gold operations by central banks are necessary for successful gold price and gold reserves management and demonstrate the power of market forces relative to central banks. - SSRN
There are no such things are markets anymore, only interventions.

Friday, July 15, 2016

Japan joins China in opening a physical gold exchange

The Tokyo Commodities Exchange (TOCOM) is joining with the Shanghai Gold Exchange (SGE) to become the second major physical gold market in Asia.  Beginning on July 25, the TOCOM will begin deliveries for spot contracts, and is the only gold exchange accepted for futures contracts in Japan.

Since Japanese bonds fell into negative yields, investors and consumers have been buying physical gold at incredible rates.  And now that their market will have an official gold exchange like the one that opened in Shanghai last year, the precious metal will become even more liquid and draw more customers into gold.

The Tokyo Commodity Exchange Inc. (TOCOM) has announced today that July 25th will be the start date of new Gold Physical Transaction, pending regulatory approval. Gold is the most actively traded commodity at the Exchange with both futures and options contracts listed. 
Simultaneously, TOCOM will introduce a delivery at settlement option for the Gold Rolling Spot contract. Originally a cash-settled contract, the change is expected to better serve investor needs. 
Financial markets fell in reaction to the Brexit vote and the world economy is turning increasingly uncertain. Hence, Gold is in greater demand as a safe asset that removes credit risk. It is also seen as an effective inflation hedge and superior for long-term asset protection. Additionally, gold provides portfolio diversification, since price movement tends to uncorrelated with equity and bond prices. 
With the launch of this Gold Physical, TOCOM is providing a single platform where investors can conduct spot trading or hedge in gold with transparent pricing. TOCOM is the only regulated exchange that operates a gold market in Japan, and continues to improve investor convenience. - Leaprate