It was a pretty quiet trading day in gold yesterday. The low of the day was shortly after trading began on the Globex system on Thursday morning in the Far East... with the high of the day [such as it was] coming at the London p.m. gold fix at 3:00 p.m. local time... 10:00 a.m. in New York. From there, gold sold off a few bucks... and then traded sideways into the close of electronic trading at 5:15 p.m. Eastern time. Nothing to see here, folks... but gold did finish up $5.70 on the spot market.
Silver traded across a wider price band than gold yesterday... and it's high of the day was also at the London p.m. gold fix [$29.02 spot]... before it, too, got sold off and then traded sideways for the rest of the New York session. Silver gained a respectable 40 cents on the day.
The world's reserve currency spent the second day in a row basically ending up unchanged around the 80.00 cent mark... and it meandered 30-40 basis points either side of that mark during the trading day. The dollar's Thursday high [80.42 cents] came at precisely 11:00 a.m. Eastern time. It's New York low came precisely two hours later at 1:00 p.m. on the button. You would be right in thinking that these are not random market events.
It was no surprise that the gold shares topped out at 10:00 a.m. Eastern time... as that was gold's high of the day. The HUI fell about a percent after that... but managed to climb back to a respectable close... up 0.86%. A few of the major gold stocks that constitute the HUI did not do particularly well... and this certainly had a negative effect on the index. Most smaller companies [especially the silver companies] had a much better time of it.
It was another busy CME delivery report yesterday with 523 gold and 50 silver contracts posted for delivery on Monday. JPMorgan was the big issuer [516 contracts] in gold... with Deutsche Bank receiving/stopping 377 contracts. Month-to-date, over a million ounces of gold has been delivered... along with 6 million ounces of silver. The link to yesterday's activity is here.
The GLD ETF reported another withdrawal yesterday. This time it was 78,108 ounces. There were no changes reported in SLV. The U.S. Mint had nothing to say, either.
But over at the Comex-approved depositories on Wednesday, they reported receiving a very chunky 1,284,279 troy ounces of silver, with virtually all of it being deposited at Brink's, Inc. The link to that activity is here.
I have a lot of stories today. The first two are about the same thing. It's now official, Ron Paul is Head of the Monetary Policy Subcommittee. I'm sure 'Helicopter' Ben is not amused. The first story on this is a zerohedge.com piece containing a Fox News video clip that was sent to me by Australian reader Wesley Legrand. The Ron Paul interview starts about 3:25 into the clip... and it's well worth watching. The link is here.
The second story is a Bloomberg piece imbedded in a GATA release that Chris Powell headlined With the right questions now, Paul really might 'End the Fed'. This is a far more in-depth analysis of this event than is provided in the Fox News video... and the link to that story is here.
Today's next offering comes courtesy of reader Scott Pluschau. It's another Bloomberg story, this one headlined "U.S. Home Values Poised to Lose $1.7 Trillion in 2010". That's on top of the $7.3 trillion real estate losses since the 2006 peak. The link is here.
Washington state reader S.A. was kind enough to share the next story with us, which is also a Bloomberg offering. It's an op-ed piece by Bloomberg journalist Jonathan Weil... and he tees up the Justice Department's "Operation Broken Trust"... and drives it down the fairway. The piece is headlined "Wall Street's Worst at Least Know Math"... and the link is here. You can't make this stuff up!
Wesley Legrand has another little something for us today. It's a piece he stole from chief economist David Rosenberg over at the Toronto firm of Gluskin Sheff. In a piece headlined "Is the Credit Contraction Over?"... Dave had this to say... "What do you know! Outstanding U.S. consumer credit expanded $3.3 billion in October after eking out a $1.3 billion increase in September. This is the first back-to-back gain since just before Hank Paulson took out his bazooka in the summer of 2008. Does this mean the credit contraction is over? Hell no.
First, the raw not seasonally adjusted data show a $700 million decline. Once again, it was federally-supported credit (i.e.. student-backed loans) that accounted for all the increase last month ― a record $31.8 billion expansion. Commercial banks, securitized pools and finance companies posted huge declines ― to the point where excluding federal loans, consumer credit plunged $32.5 billion, to the lowest level since November 2004 (not to mention down a record 9% YoY). Over the past three months consumer credit outstanding net of federal student assisted loans has collapsed $76 billion — this degree of contraction is without precedent. [Highlighting is mine. - Ed]
Here's a WikiLeaks story that's courtesy of Swiss reader B.G. It's over at the huffingtonpost.com website... and is headlined "Columbia Alumnus Rebukes School for 'Shocking' Anti-WikiLeaks Advice". I'm sure glad that America has people such as this are still willing to stand up to the 'thought police'... and the link to the story is here.
What would this column be like without a contribution from reader Roy Stephens. This is another shocker... and it's posted in Wednesday edition of The Guardian in London. The headline reads "Allied Irish Banks to pay €40m bonuses despite bailout". More piggies at the trough, while Ireland's taxpayers suffer. The link is here.
While over in the 'old country'... as my grandfather used to say... this next Roy Stephens offering is from yesterday's edition of The Telegraph... and reads "Tuition fees protesters attack car carrying Prince Charles and the Duchess of Cornwall". In the photo that goes along with the article, both of them look horrified as the 'great unwashed' over run their Rolls Royce. The link is here.
Along with that raft of stories above, I also have a fair number of precious metals-related stories as well. The first is a GATA release of a King World News blog that Chris Powell has headlined "Morgan rigs bond, gold markets for a desperate Fed". Eric King headlines the story "KWN Source: Gold Will Move $150 Higher Within 5 weeks". This is worth the read... and the link is here.
Here's another GATA release headlined "Despite central banks and jewelers, gold has re-monetized itself". The release contains a Financial Times story that's printed in the clear. The headline of the article itself reads "Gold Jewellery Loses Glister as Prices Surge". This, too, is well worth the read... and the link is here.
Florida reader Donna Badach was kind enough to send the following kitco.com story that's headlined "U.S. Mint To Re-Launch Silver Bullion Coins On Friday, Warns Of Price Gouging". I mentioned in this column yesterday, that these 5-ounce silver coins would not only be difficult to find... but hugely expensive as well. This story confirms that... and it's well worth your time. The link is here.
Here's a CBNC video from yesterday that was just sent to me by Russian reader Alex Lvov. Investors should buy silver because it's the new gold, says John Stephenson, First Asset Investment Management. The clip is titled "Call of the Day: Silver to $50?"... and the link is here.
At the CFTC meeting yesterday, the subject of position limits didn't come up... but will in the public meeting that's scheduled for next Thursday, December 16th. And, for the second day in a row, CFTC commissioner Bart Chilton made that comment that "Even earlier this year, one trader held over 40 percent of the silver market." Well, golly gee!!!... I wonder who that might be??? Reader Donna Badach sent me the CFTC press release on yesterday's meeting... and the upcoming position limits meeting next Thursday. The longish headline reads "CFTC to Hold Open Meeting on Eighth Series of Proposed Rules under the Dodd-Frank Act". It's a very short read... and worth your while. The link is here.
Here's a really interesting story that was posted over at globeinvestor.com yesterday. It's contained in another GATA release... this one headlined "Eight years after repudiating Embry, Royal Bank loves gold". The Royal Bank report on gold... and Chris Powell's introduction... are both must reads... and the link is here.
Lastly, is your big read of the day... but, considering the subject material, you should be up to it. It's Sprott Asset Management's latest Markets at a Glance Commentary... written by Eric Sprott and David Franklin. It's really two silver commentaries posted back to back. I knew back in June that Sprott was forced to sit on the first story because of their pending silver ETF application to the SEC. So, six months later... here it is. The headline reads "The Double-Barreled Silver Issue"... and, as you can see, silver analyst Ted Butler's 25-year body of work figures prominently in this essay. This is, of course, a must read... and the link is here. I hope the link works, because I was having trouble with it earlier... and it's still not posted over at sprott.com yet, although it might be by the time this arrives in your in-box.
Vancouver, B.C., August 5, 2010. Harvest Gold Corporation (TSX.V: HVG) (the “Company”) is pleased to announce gold and silver assay results from the first five reverse circulation drill holes, HGR-1 through HGR-5, completed during the Company’s first phase drill program at its Rosebud Mine property in Pershing County, Nevada. The drill program has been completed with twelve reverse circulation drill holes totaling 4,574 metres (15,005 feet). Final assay results from all remaining holes are expected within two weeks.
Rosebud is located 5 miles (8km) south of the large Hycroft deposit being mined by Allied Nevada (ANV:TSX ; ANV: AMEX). The mineralization being produced there is from a bulk tonnage mine with near surface gold mineralization similar to that in the HVG intersection announced today of 114 m grading 0.5 gram per tonne gold.
The higher grade silver mineralization, discovered at depth, occurs where two large rock masses come into contact called an unconformity. This is particularly interesting as this geological setting has the potential of hosting large volumes of high grade mineralized rock which our intersection of 12 m silver, with a gold equivalent of over 10 grams per tonne, seems to support.
The Company will now begin the search for a qualified independent engineering firm to calculate a NI 43-101 resource estimate. Much gold was left behind at Rosebud after the years 1997-2000, when the mine was in operation, because it was selling for less than $300 an ounce.
We knew historical operators left a lot of gold in the ground due to the very low gold price at the time. These first holes support this claim and also indicate that new high grade mineralization exists at depths below the former mine.
Please visit our website to review the full press release and learn more about Harvest Gold.
It’s taken almost two centuries for bankers to pull the wool over Americans’ eyes, but today you and I are working for intrinsically worthless paper that can be created by bureaucrats — created without sweat, without creative ability, without work, without anything but a decision by the Federal Reserve. This is the disease at the base of today’s monetary system. And like a cancer, it will spread until the system ultimately falls apart. This is the tragedy of the great lie. The great lie is that fiat paper represents a store of value, money of lasting wealth.- Richard Russell
All in all, not much happened in the precious metals market on Thursday. Volume in gold was pretty light... as was silver's volume, at least compared to Wednesday's reported volume. I'm expecting open interest in both gold and silver to be down sharply when the CME provides the final Thursday volume and open interest numbers later this morning.
And, while on the subject of open interest, the bullion banks did exactly what I said they would. They shoved all of Tuesday most important action [and open interest decline figures] into Thursday morning's report [rather than Wednesday morning's report]... so it won't be in today's Commitment of Traders report later this afternoon.
Anyway, what the numbers showed was that gold open interest on "The Day of Infamy" fell 5,287 contracts... and in silver, open interest was down even more... 5,664 contracts.
Today's Commitment of Traders report [for positions held as of the end of trading on Tuesday, December 7th] will be posted at 3:30 p.m. sharp... and the link is here.
And, as I mentioned earlier in this column, the December Bank Participation Report [Futures Market] will be out this morning... and the link to that, for those of you who follow it, is here. I'll comment on both in my Saturday column.
Not much is happening in gold and silver trading as of 4:51 a.m. Eastern time. Both metals are up a tad in early London trading... and volumes in both are almost nonexistent. Since it's Friday, anything can [and probably will] happen when trading begins in New York at 8:20 a.m.
Here, once again, is the 1-year silver chart. If I had to bet ten bucks based on what this graphs shows, my guess is that this sell-off in both metals has pretty much run its course. I reserve the right to be wrong... but that's the way it looks to me at the moment... and we'll find out soon enough.
There's still time to get fully invested in the continuing major up-leg of this bull market in both silver and gold... and I respectfully suggest that you take a trial subscription to either our International Speculator [junior gold and silver exploration companies], or BIG GOLD [large producers] today, as that will allow you the luxury of spending time the weekend perusing the current issues, with all our best [and current] recommendations... as well as the archives. Don't forget that our 90-day guarantee of satisfaction is in effect for both publications.
That's it for me for another day.
I hope your weekend goes well... and I'll see you on Saturday.