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Showing posts with label price. Show all posts
Showing posts with label price. Show all posts

Thursday, May 25, 2017

Bitcoin bonanza in Asia as rush to get out of fiat currencies drives price of cryptocurrency to a whopping $4500 per coin

It has not been difficult to figure out that as Asian economies have begun to show signs of recession and economic decline, the need for individuals and institutions to get out of their devaluing currencies is a must.  And by far the most liquid and primary asset in which most are going into over the past two months is Bitcoin.

A week or so ago we published an article showing that more than 48% of all Bitcoin transactions in recent days have occurred in Korean and Japanese exchanges, with most of these purchases being tied to institutional investors.  However it appears that the push to $2300 less than seven days ago was just the tip of the iceberg as Asian buyers, especially in South Korea, have now propelled the price of Bitcoin to over $4500, or a near doubling in less than a week.

As Bitcoin.com reports, the region has also been blossoming with startups dedicated to bitcoin remittance and financial tech advancement. 
The South Korean government has been very friendly towards digital currencies, and the country is steadily becoming a technology hub. Just recently the government lowered the equity capital requirement for bitcoin companies working with remittances. The new statutes will begin on June 18 with a reduction of required capital to 1 billion KRW in contrast to the prior requirement of 2 billion KRW. 
Additionally, researchers from the South Korean central bank recently released a report that detailed that virtual currencies like bitcoin can “coexist with fiat.” 
"The recent emergence of digital currency opens up a new type of dual currency regime in which digital currency, which has no intrinsic value and a government-issued fiat currency coexist,” explained the researchers from Seoul’s Hongik University and members of the Bank of Korea’s (BOK) report. 
The wide spreads are unprecedented even compared to other recently inflated markets such as Japan, local exchange bitFlyer listing a price of 333,200 yen ($2980).
On Coinbase, one Bitcoin is currently selling for $2667.53 as of press time on Thursday. 
Users have presented various theories as to why South Korea’s exchange market is so varied, these ranging from capital controls to en masse arbitrage and even a “debt-fuelled bubble” economy. 
Bitcoin itself, meanwhile, is continuing to produce new price highs, flying in the face of those concerned that a new bubble has formed. - Zerohedge

Monday, May 22, 2017

Silver strongly regains $17 handle with a 1.5% Monday morning move

On May 22 silver is up over 1.5% to $17.20 as it finally breaks through the $17 resistance barrier after three attempts in the past seven days.

In fact silver is up over $1.00 since its May 9 lows of $16.20, and has alot of steam behind it with many of the open shorts on the Comex being covered this month.



For 14 consecutive days, the amount standing for physical has risen.  On First day notice 16.8 million oz were standing; tonight 22.94 million oz. It looks to me that sovereign China wants its silver back as it looks like we have a determined player with deep pockets willing to take silver away from the COMEX… - Silver Doctors

Monday, May 8, 2017

Money psychology: Is Bitcoin price already too high for desirability as a currency?

The advent of Bitcoin, as well as rise of the blockchain and its growing number of different crypto-currencies, is bringing forth a great debate on whether these constructs of digital money are the wave of the future for consumers, savers, and investors.

But there are a few very interesting things that are bing missed by most individuals in the Bitcoin eco-sphere, and these are the psychology of money, and the fact that as Bitcoin has now crossed over $1600 per coin, and is being forecast to possibly go as high as $4000 by the end of the year, has the crypto-currency priced itself out of the general market?  And perhaps even more, has it already destroyed its psychological value to individuals as a viable form of money?

A layman's definition of what money is can be determined as this:  An idea backed by confidence.  And for something to be considered a medium of exchange (money) it must have the intrinsic properties that all monies have (store of value, divisible, fungible, portable, etc...), but it also must have the confidence, be it forced (by government), or voluntarily accepted (by critical mass of consumers and retailers), to act as a recognized medium of exchange.

Thus as the price of Bitcoin in dollars as well as other currencies skyrockets due to speculation and investor sentiment, the question that has to be asked is whether or not Bitcoin has priced itself out of the ability to become an accepted currency, simply by the fact that the majority of individuals today can only afford to purchase fractions of the currency, rather than whole Bitcoin's themselves.

Picture this.  A person has $20 they can afford to use to purchase Bitcoin, so they create a digital wallet and go through an exchange to buy some of the crypto-currency.  Now this individual understands the basics of monetary division when it comes to dollars as they have used quarters, dimes, nickles, and pennies for nearly all of their lives.

But at today's price, $20 will buy that individual only .0125 of a Bitcoin, which in physical terms would equate to a penny and a quarter of a penny.  So psychologically, that individual has exchanged $20 for a penny.


Now of course in the crypto-currency realm .0125% of a Bitcoin is not valued at one cent, but you can see the psychology of this as people used to dealing in round numbers and limited fractions in their money now have to go outside the box to try to come to the understanding that it will be unlikely they will ever own a single full Bitcoin since more than half of Americans alone cannot even afford to pay $500 if a sudden emergency required them to come up with those funds in addition to their normal budget.

Then of course there is the reality that the amount of retailers who deal in Bitcoin is still quite limited, and the marketing of Bitcoin as a viable medium of exchange in the mainstream is almost negligible.  And also the fact remains that if people don't see Bitcoin promoted in the mainstream media, or shown in some viable application from the commercial advertising they are programmed to trust, then Bitcoin, as well as other crypto-currencies, will remain as fringe ideas and concepts, or as simply a construct traded in financial markets under the guise of a speculative investment.

Sunday, April 16, 2017

Ted Butler wants metals owners to join in mail campaign to the Comex to end silver manipulation once and for all

Long time precious metals analyst Ted Butler has started a campaign to try to end price manipulation in the silver markets by asking everyone to copy and paste a letter he wrote to two new top executives taking over at the U.S. Commodities Futures Trading Commission (CFTC).

In the letter, Mr. Butler points out the years of allowed fraud and price manipulation that has gone on in the futures markets of precious metals, and in particular silver, and cites information from the Comex and CFTC's own websites that validate the manipulation going back more than a decade.

So, for anyone with an interest in higher silver prices or who is a believer that free markets, not controlled by large traders gaming the system, is the right way, then there is something you might consider doing. Now is an ideal time to raise these very important issues about concentration and manipulation in COMEX silver. The two officials most responsible for uncovering manipulation at the CFTC just started in this capacity on Monday and should be more open to the facts than otherwise. I can understand how many might feel that contacting these officials and others might be a waste of time, given the agency’s failed record over the years in this regard. Still, I’m not talking about any burdensome effort, just sending a few emails or letters to get straight answers to some very good questions. 
I’ve already written to the two new officials (both by email and hard copy) and feel free to use what I sent. I would ask you not to improvise and include other issues, such as gold manipulation. Besides, nothing would impact gold prices more than having the silver manipulation terminated. The best approach is in being as specific and factual as possible so as to pin the agency down. They may refuse to answer and one way of insuring maximum pressure is to write to them through your elected officials. Here’s the letter I wrote that you are free to copy. I’ll include pertinent emails address at the end. - Silver Seek
And here is the letter to copy, paste, and email to the addresses and commissioners below.

April 10, 2017

Andrew B. Busch via Email
Chief Market Intelligence Officer

James McDonald
Director - Enforcement Division

Commodity Futures Trading Commission

1155 21st Street NW
Washington, DC 20581

Dear Sirs,

Congratulations and best wishes on your appointments to key positions at the Commission at this critical time in market history.
I’m writing concerning a matter that the Commission has considered on a number of past occasions - allegations of a silver price manipulation on the Commodity Exchange, Inc. (COMEX). The reason the Commission has considered the issue of a silver price manipulation several times in the past is because the agency’s own public data and guidelines point strongly to such a manipulation. Never have the data been more convincing than what was just published Friday, in the Commission’s release of its weekly Commitments of Traders (COT) Report, for positions held as of April 4, 2017.

That report indicates that the concentrated net short position held by the four largest traders in COMEX silver futures hit an all-time extreme in numbers of contracts of 78,021, the equivalent of 390 million oz. of silver. The concentrated net short position of the eight largest traders was indicated at 104,978 contracts or the equivalent of nearly 525 million oz., or more than 60% of world annual mine production. No other commodity comes close to COMEX silver futures in terms of a larger concentrated short position when compared to real world production. On its face, the large concentrated short position in COMEX silver futures would appear to be an artificial price depressant.

As you know, the Commission monitors and publishes concentration data in all regulated futures markets as the prime front line defense against price manipulation. After all, it would be nearly impossible to manipulate any market without a concentrated position. But not only do COMEX silver futures stand out as having the largest concentrated short position of any commodity, in terms relative to real world production, consumption and existing inventories, the concentrated short position in COMEX silver futures is notable for other reasons.
For one reason, the big short traders do not appear to be engaged in any sort of legitimate hedging, since there are no signs they represent actual producers or hedgers of physical holdings. Separate agency data, contained in the monthly Bank Participation Report, indicate that the largest shorts are mostly domestic and foreign banks essentially operating as speculators, in a pseudo-market making capacity against other speculators. Publicly-owned mining companies are required to disclose any hedge activity and few, if any have disclosed any hedging in silver. The big short sellers in COMEX silver futures are financial firms, mostly banks, speculating against other big speculators and have no legitimate economic or hedging purpose in dealing in COMEX silver in the first place. As I’m sure you know, Congress allows futures trading for the purpose of encouraging legitimate hedging, not to encourage excessive speculation.

The largest COMEX silver short seller for the past nine years is JPMorgan. That has been the case ever since it acquired the failing investment bank Bear Stearns, the former largest COMEX silver short seller, according to Commission data and its correspondence with lawmakers. The special manipulative twist here is that since 2011, JPMorgan has engaged in an epic accumulation of physical silver at prices much lower than would have existed if the bank had not also been the largest silver short seller on the COMEX. In the recently completed COMEX March silver futures delivery period, JPMorgan stopped (accepted) 2689 contracts in its own proprietary trading account, plus another 739 contracts on behalf of a client(s), considerably more than the 1500 contracts allowed according to exchange regulations. This while JPMorgan was the largest short holder in COMEX silver futures. It is not possible to imagine a more compelling motive or intent for manipulation than to acquire a massive amount of any commodity at depressed prices, where the acquirer is responsible for the depressed prices.

Almost without fail, on every past occasion where the concentrated short position in COMEX silver futures reached extreme levels, it was only a matter of time before the price of silver gets rigged lower by these big shorts to induce speculative selling from traders operating on technical price signals. In fact, COT report data indicate that JPMorgan has never taken a loss, only profits on every silver short position it has added over the past nine years. Such results would not be possible in a market that wasn’t manipulated in price. In essence, speculators have taken over the price discovery process in silver because there are so few real hedgers trading on the COMEX, only speculating banks betting against other speculative traders. Even assuming the current extreme concentrated short position leads yet again to a sharp selloff in silver, there is another issue that goes to the core of regulatory concern.
In addition to the clear agency data pointing to a silver price manipulation, the presence of such a large and non-economic short position necessarily enhances the likelihood of disorderly market conditions once it becomes clear to enough market participants that unbacked concentrated short positions on the COMEX have been the reason why silver prices are so depressed.

I have communicated all this to the Commission, JPMorgan and the CME Group (owner-operator of the COMEX) for many years, with hardly any acknowledgement or rebuttal. I am hoping you will consider this matter differently and act to finally end the manipulation. I’m sure how you handle this matter will define your tenure. If I can be of any further assistance, please do not hesitate to call on me.
Sincerely yours,

Ted Butler

Andrew B. Busch - [email protected]
James McDonald - [email protected]
Acting Chairman J. Christopher Giancarlo - [email protected]
Commissioner Sharon Y. Bowen - [email protected]

Let me close by telling you that I am very thankful for the unique opportunity created by the new senior appointments at the CFTC, along with the simultaneous publication of the most concentrated data in silver shorting in history. I assure you that I am not holding my breath waiting for the CFTC to finally step up to the plate and do the right thing; not after 30 years of denial and obfuscation. I know full well that the agency’s denials up through today have only hardened it to maintain the façade that nothing is wrong in COMEX silver, despite glaring and growing evidence to the contrary. Still, it would be a waste not take advantage of an unexpected opportunity.

Ted Butler
April 12, 2017

www.butlerresearch.com

Saturday, March 18, 2017

Bitcoin crashes down to near $1000 as China sets new parameters to monitor identities of users

As we have mentioned numerous times in previous articles here at The Daily Economist, Bitcoin's primary kryptonite is not in the digital currency itself, but in the third parties that would seek to manipulate its original scope for their own benefits.

By this I refer to the supplemental constructs that have emerged to help facilitate Bitcoin use such as with currency exchanges, or the introduction of capital controls by sovereign entities that countermand the crypto-currencies benefits of transparency and security.

Recently Bitcoin has experienced massive volatility over the past couple of months, intrinsically tied to one of the above mechanisms.   First there was a price spike due to Chinese investors using the crypto-currency as a way to get their wealth out of the Yuan and into something else, and this was then followed by a just as severe a drop in price when the Chinese government halted their local Bitcoin exchanges because the facilities were re-hypothicating customer accounts for pooled transactions.

A few weeks later the price once again soared to a new all-time in the speculation that the SEC might approve of a Bitcoin ETF that would financialize the digital currency on U.S. exchanges.

And now on March 18, the newest intrusion on Bitcoin has emerged when the Chinese government announced they were instituting identity monitoring to their Bitcoin exchanges which in part led to the crypto-currency falling more than $100 USD.

China's central bank is moving to regulate its domestic bitcoin industry, circulating new guidelines that, if enacted, would require exchanges to identify clients and adhere to banking regulations. 
Recent scrutiny by the central bank has already led exchanges to impose trading fees and suspend withdrawals of bitcoin from their platforms. Chinese investors have fled the market. 
A draft of the guidelines says Chinese bitcoin exchanges would be subject to current banking and anti-money-laundering laws, and required to collect information to identify their clients, according to people familiar with the matter. They say the rules, if implemented, would require exchanges to install systems for collecting and reporting suspicious trading activity to authorities. The People's Bank of China would be in charge of handling violations by the exchanges. - Marketwatch

Friday, March 10, 2017

Bitcoin price flash crashes as SEC rejects application for a Bitcoin ETF

In a move that should have seen holders of Bitcoin rejoice rather than panic, the SEC on March 10 rejected the Winklevoss twins application to create a Bitcoin ETF, which would have seriously harmed the crypto-currency by financializing it under Wall Street control.

Yet because Bitcoin has become the primary crypto-currency of choice, easily winning out over other digital forms such as Etherium, Dash, and Monero, its volatility is extraordinary since it has already become partially financialized via Bitcoin exchanges.

And thus when the news broke we saw the price in USD fall nearly $300 down to $978.


After much anticipation (and a spike to record highs earlier today), The SEC has decided to reject the Winklevoss application for a Bitcoin ETF. 
The SEC premise appears to be the unregulated natuire of the underlying: 
Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. 
Therefore, as the Exchange has not entered into, and would currently be unable to enter into, the type of surveillance-sharing agreement that has been in place with respect to all previously approved commodity-trust ETPs—agreements that help address concerns about the potential for fraudulent or manipulative acts and practices in this market - the Commission does not find the proposed rule change to be consistent with the Exchange Act. - Zerohedge
The irony is that Bitcoin should have gone higher rather than flash crash because supporters of the crypto-currency desperately want to keep it out of the hands of Wall Street, banks, and government regulators.  However, when we look at how activities taken by the Chinese government last month could cause the same type of volatility to the price of Bitcoin as today's ruling did, the question needs to be asked if the digital money has not already been corrupted to the point in centralization that it no longer provides the wealth protection and security that were the platforms that made Bitcoin unique.

Saturday, February 25, 2017

As Bitcoin and gold converge at $1250, which asset is the best to buy with your money?

On Friday Feb. 24 we saw the price of gold end the week over $1250, and bitcoin near its own all-time high of nearly $1230 begging the question of which asset of the two is the best to buy if you have the money.

Followers of either gold or bitcoin have strong arguments both for and against each asset, while there are also a number of investors who are in favor of owning both as a means of wealth protection.  However, if an individual only had $1250 to spend on one or the other, what parameters would separate the two to make one stand out more than the other.


Bitcoin has the potential for much bigger growth, and in this it acts as both a form of currency and type of investment.  But Bitcoin relies upon many factors such as widespread public acceptance to function in commerce, and the hope that governments do not criminalize the crypto-currency as being a threat to their monetary systems.

Additionally however, Bitcoin is completely portable and transferable, and can be taken across borders without anyone having knowledge of its existence.

But perhaps it's biggest failing is that it is not tangible in the physical sense, and has as much emotional value to an individual as their plastic debit card, or even as poker chips do while gambling in a casino.

Live New York Gold Chart [Kitco Inc.]

Gold on the other hand has a history stretching back to the beginning of mankind, and has been both money and a store of wealth of over 5000 years.  And while it is much more difficult to store in larger quantities than Bitcoin, and much more difficult to transfer across borders and customs than if someone simply carried a pen drive with them in their carry-on luggage, gold is easily the most recognizable form of money and could be used for commerce in just about every city, nation, or village on the planet.

As fiat currencies show their age and their accelerating decline in value, assets like gold and Bitcoin will both reign as strong alternatives for people to transfer their wealth into for the distant future.  And the question of which one to choose will become a real issue in the days ahead now that both have reached virtual equilibrium in both price and desirability.


Wednesday, January 4, 2017

Bitcoin price could surpass gold in dollars by the end of the week

As the price of Bitcoin crushed through the $1100 resistance level with great gusto last evening, it appears to only be a matter of time before the crypto-currency reaches and surpasses its all-time high of $1165.

But perhaps what is even more astonishing is that Bitcoin is now only $20 from equaling the dollar price for gold, which currently stands at the same all-time high price that Bitcoin achieved back in 2013.
graph
Bitcoin prices are up $100 on the day, having already shot past the $1,100 mark. 
Markets have risen nearly 10% over the course of the day’s trading, according to data from the CoinDesk Bitcoin Price Index (BPI), which hit a high of $1,141 at time of writing before falling back. 
With the move, global exchange averages have inched closer to the BPI's all-time high of $1,165.89, set on 30th November, 2013, leaving them roughly $25 below that level. 
The digital currency's price appreciated sharply after crossing the $1,100 line, quickly spiking to a high of $1,129.28, before meeting some resistance. - Coindesk
This anomaly in price between gold and Bitcoin is centered around a two-fold dichotomy, where manipulation of one is much easier for the banks to accomplish since they can do so simply by dumping thousands of bogus paper contracts.  And at the other end of the spectrum is the ongoing global currency crisis that is occurring from Venezuela to China, making it much easier for individuals and investors to move their money around using Bitcoin rather than through purchasing gold or silver and trying to utilize them as a medium of exchange.

While there may some short-term resistance for Bitcoin to reach and surpass its all-time high price of $1165, the chances are very good we could see this happen before the market close on Friday in Asia.  But either way, with Bitcoin, gold, or silver, all three have quickly become the money of choice for people seeking to protect themselves from the cash bans, capital controls, and overall destruction of the sovereign money they primarily use.

Thursday, June 30, 2016

As Deutsche Bank teeters on edge of collapse, rise in gold prices signal warning of pending monetary collapse

Since the price of gold has been rising steadily since January of this year, we already know that it wasn't simply last week's Brexit event which created the catalyst for gold prices to climb to a new two-year high.  And following Britain's historic move to leave the European Union six days ago, analysts are now seeing gold signal a warning sign that a larger monetary event may be just on the horizon.

Modern financial collapses tend not to come from economic recession or declines in the stock markets, but rather in liquidity crises that emerge from insolvent banks... such as from those we saw from Northern Rock in 2007, and Bear Stearns, Lehman Bros, and Morgan Stanley a year later.  And with the Federal Reserve's stress tests on banks coming to a completion, fears are emerging that Germany's largest financial institution is ready bring about a new monetary collapse.

Domestically, the largest German banks and insurance companies are highly interconnected. The highest degree of interconnectedness can be found between Allianz, Munich Re, Hannover Re, Deutsche Bank, Commerzbank and Aareal bank, with Allianz being the largest contributor to systemic risks among the publicly-traded German financials. Both Deutsche Bank and Commerzbank are the source of outward spillovers to most other publicly-listed banks and insurers. Given the likelihood of distress spillovers between banks and life insurers, close monitoring and continued systemic risk analysis by authorities is warranted. 
Among the G-SIBs, Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse. In turn, Commerzbank, while an important player in Germany, does not appear to be a contributor to systemic risks globally. In general, Commerzbank tends to be the recipient of inward spillover from U.S. and European G-SIBs. The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures, as well as rapidly completing capacity to implement the new resolution regime. 
The IMF also said the German banking system poses a higher degree of possible outward contagion compared with the risks it poses internally. This means that in the global interconnected game of counterparty dominoes, if Deutsche Bank falls, everyone else will follow. - Zerohedge
There is a reason why the 'smartest men in the room' have been not only divesting themselves and the funds they manage out of stocks, and instead are using those proceeds to buy into gold as their largest investment.  And that reason is because the global financial system is going through a fundamental sea-change, and as yet there is no clear determination on how things will play out... only that it is crucial to be in some form of physical safe haven asset that carries no counter-party risk from the paper markets.

Gold has always acted as a barometer for the strength or weakness of currencies, but in today's paper and electronic monetary system, it now acts as a warning sign on the strength of banks, markets, and economies as well.  And with central banks, sovereign governments, hedge funds, and those few who have woken up to the warnings on the horizon having bought gold to the point that supplies are now extremely tight even before the crash begins, it is unlikely that there will be much supply left at all for those who do not buy into gold now rather than wait until it is far too late to acquire it.

Monday, December 1, 2014

Gold bottoms, then skyrockets within 24 hours of failed Swiss gold referendum

As Sunday Nov. 30 was chosen by the Swiss to be the day of their gold referendum, the banking cartels took advantage of limited access to utterly collapse both gold and silver by more than 10% during off-market trading.  And with the Swiss people happily choosing to remain tied to fiat currencies and a debt-based Keynesian model, it was very easy for the banks to short gold and silver to below $1150 and $14.50 respectively.
 
But something interesting happened when Europe opened, and late Asian trading got into the action.  The metals markets began to reverse, and by the time New York opened at 9:30 am, not only were all the losses recovered from yesterday’s blood bath, but within 30 minutes of trading, gold was in the black by more than $27, and silver was up $.54, and ahead of their Friday close.
 
 

Monday, April 7, 2014

Physical silver purchases hit new record as paper price continues slide

According to the U.S. Mint, March sales of Silver Eagle one ounce coins set a new record at the same time paper spot prices for silver fell by more than $2.50 over the past 60 days.
In fact, the rise in gold and silver prices had been the second largest gainer in the overall market until deflation, slowdowns in China and other BRICS economies, and a Federal Reserve taper announcement began a sharp decline from a 19% gain in the first few months of 2014.
According to the recent update by the U.S. Mint, Silver Eagle sales hit a new record in March.  Sales of the U.S. Silver Eagle reached 4,476,000 at the end of the week.  Even though this surpassed the amount sold last year by over one million, the U.S. mint still has one final update to take place on Monday, March 31st.


Read more on this article here...

Friday, September 23, 2011

Gold and silver crash mystery solved - September 23rd

Gold, silver, and especially copper all fell to the headsmans axe today, and through most of the market trading, rumors abound who the culprit was that caused the massive selloffs.

Was it Europ banks needing liquidity?  Was it a hedge fund needing to pay investors, or, was it Sovereign states selling off their central bank holdings?

None of the above.  No, the answer was once again the manipulated CME, who once again raised margin limits in another desperate attempt to halt the flow of dollars into metals, and to try to save the unsavable greenback.

And there you have it: CME just hiked gold margins by 21%, silver by 16% and copper by 18%. Mystery solved. - Zerohedge

So for those who didnt panic during the last CME manipulation, refrain from doing so this time.  The price will slowly make its way back up in a short period of time.