Gold & Silver Daily
"JPMorgan et al managed to take another slice out of the gold and silver salamis"
 

¤ Yesterday In Gold & Silver

The gold price didn't do much in Far East or early London trading, but managed to make it back above the $1,300 spot price mark about thirty minutes before the Comex open.  That was its high tick of the day---and once gold began trading in New York, the HFT boyz showed up with their algorithms---and the low of the day was in by around 11:30 a.m. EDT.  After that, the price didn't do much.

The high and low ticks were reported as $1,303.70 and $1,94.70 in the December contract.

Gold closed back below the $1,300 mark at $1,295.20 spot, down an even two bucks on the day.  Net volume was very light at 72,000 contracts.

Silver didn't do a thing except chop sideways in a very tight range up until a few minutes before the Comex open.  The 'rally' that developed at that point got dispatched in the usual manner---and the HFT boyz took another decent slice off the silver salami, with the low tick coming the same time as gold's---at 11:45 a.m. EDT.  The price recovered a bit off its low, but didn't do much after that.

The high and low tick as recorded by the CME Group were $19.70 and $19.365 in the September contract.

Silver finished the Tuesday session at $19.405 spot, down 18 cents on the day.  Net volume was only 25,000 contracts.

The platinum price traded a handful of dollars in positive territory up until about 9 a.m. in New York---and then it suffered the same fate as gold and silver, with the low tick of the day coming around 11:45 a.m. EDT.  And after a quick recovery, it traded flat, closing down four bucks on the day.

Palladium traded pretty flat all through Far Eat and Zurich trading, but that all ended minutes after 10 a.m. EDT when a not-for-profit seller showed up.  The low, like platinum, came minutes before noon in New York---and it only recovered a small handful of dollars from there.  Palladium got closed down ten dollars.

The dollar index closed late on Monday afternoon at 81.57---and proceeded to tack on 10 basis points between the Tuesday open and the Comex open in New York at 8:20 a.m. EDT yesterday morning.  At precisely that moment, the index jumped another 15 basis points in a flash, as it appeared the someone hit the 'buy dollars/sell precious metals' button.  Most of the gains that mattered were in by noon in New York---and after that it traded flat, closing at 81.87---up 30 basis points on the day.

The gold stocks rallied into positive territory very shortly after the markets opened in New York yesterday morning---and it was pretty much all down hill between 10:45 and 11:30 a.m. EDT---which is where gold printed its low tick of the day.  The subsequent rally started to fade at the 1:30 p.m. Comex close---and the HUI finished down an even 1.00%.

The silver equities put in an almost identical show, as Nick Laird's Intraday Silver Sentiment Index closed down 1.20%---giving back almost all of Monday's gain.

The CME Daily Delivery Report showed that 110 gold and 7 silver contracts were posted for delivery within the Comex-approved depositories on Thursday.  For a change, there was hardly a bullion bank in sight as an issuer or stopper.  The link to yesterday's Issuers and Stoppers Report is here.

The CME's Preliminary Report for Tuesday showed that 509 gold contracts remain open in August---and from that you can subtract the 110 contracts mentioned in the paragraph above, so we're down to 400 contracts left, with lots of time left in the delivery month.

Much to my surprise, an authorized participant added another pile of gold to GLD yesterday.  This time it was 48,100 troy ounces.  And as of 9:48 p.m. EDT yesterday evening, there were no reported changes in SLV.

Moments after I hit the 'send' button on today's column, I received the weekly update from the good folks over at Switzerland's Zürcher Kantonalbank.  They reported the changes in their gold and silver ETFs as of the close of trading on Friday, August 15---and here's what they had to say.  Their gold ETF added a tiny 6,940 troy ounces---and that, I believe, is only the second or third time this year that there's been a deposit made in it, as it's been down hill all year long except for that.  But the string of withdrawals from their silver ETF remains intact, as another 197,598 troy ounces were reported taken out.

The U.S. Mint had another sales report yesterday.  They sold 1,000 troy ounces of gold eagles---100,000 silver eagles---and 300 platinum eagles.

There wasn't a lot of activity at the Comex-approved depositories on Monday.  In gold, only 1,399 troy ounces were reported received---and nothing was shipped out.  In silver, nothing was reported received, but 326,203 troy ounces were shipped out---all from Canada's Scotiabank vault.  The link to the silver activity is here.

I have another decent amount of stories again today, but not quite as many as I had in yesterday's column.

 

¤ Critical Reads

Study Finds 25% of U.S. Troops Use Food Banks

A new study suggests that 25 percent of troops in active duty, Guard and the Reserve use food banks to provide groceries and meals for themselves or their families.

The study sponsored by Feeding America, the nation's largest food bank network, is conducted once every four years and was based on data collected in 2012. It found that four percent of surveyed households who used a food bank contained a currently serving military member.

Based on those results, Feeding America officials estimated that 620,000 of their 46.5 million customers, or about 25 percent of the military population in 2012, used food banks.

This article appeared on the military.com Internet site on Monday---and today's first story is courtesy of West Virginia reader Elliot Simon.

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Average Price of Ground Beef Hits All-Time High

The average price for all types of ground beef per pound hit its all-time high -- $3.884 per pound -- in the United States in July, according to data released today by the Bureau of Labor Statistics (BLS).

That was up from $3.880 per pound in June. A year ago, in July 2013, the average price for a pound of ground beef was $3.459 per pound. Since then, the average price for a pound of ground beef has gone up 42.1 cents--or about 12 percent.

Five years ago, in July 2009, the average price for a pound of ground beef was $2.147, according to the BLS. In those five years, the average price has climbed by $1.737 per pound--or almost 81 percent.

This article appeared on the cnsnews.com Internet site at 11:10 a.m. EDT yesterday---and I thank reader M.A. for sharing it with us.

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Map: How much $100 is really worth in every state

Not all Benjamins are created equal.

For the first time ever, the federal government this year introduced a data series that compares price differences among states and metropolitan areas. Those estimates — regional price parities and real personal income — offer something simple and immensely useful for anyone considering making a move: They allow you to compare how far your money goes in each state.

You’d squeeze the most out of $100 in Mississippi, where you could use it to buy $115.74 worth of goods and services, relative to the national average. Arkansas comes next, followed by Missouri, Alabama and South Dakota. The state where $100 falls flattest is Hawaii, where that same $100 gets you only $85.32. (D.C., though not a state, is even worse: It would buy you just $84.60 in goods.)

This short, but excellent story, contains a not-to-be-missed chart.  It appeared on the washingtonpost.com Internet site on Monday sometime.  Reader Harry Grant sent it to me in time to make yesterday's column, but I was already 'full up'---so it had to wait until today.

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36% Of Americans Haven’t Saved Anything For Retirement

Over a third of all Americans (36%) have not saved any money for retirement, according to a new Bankrate.com report. Sixty-nine percent of 18-29 year-olds haven’t saved anything, along with 33% of 30-49 year-olds, 26% of 50-64 year-olds and 14% of people 65 and older.

I would like to take this opportunity to thank my dear mother for insisting that I start putting away money as soon as I got my first job out of college. It certainly has added up over 25+ years and indeed mother knows best.

The good news is that Americans who are saving are starting earlier. Twice as many 30-49 year-olds started saving in their 20s as opposed to their 30s. But 50-64 year-olds were only slightly more likely to have started saving in their 20s than their 30s, and Americans 65 and older were almost evenly split between starting in their 20s, 30s and 40s.

This commentary appeared on the philadelphia.cbslocal.com Internet site at 10:03 a.m. EDT on Monday---and is another story that didn't make the cut for my Tuesday column, so here it is now---and I thank Howard Wiener for sharing it with us.

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Dr. Dave Janda interviews your humble scribe

The good doctor and I spent 25 minutes together on all-talk radio WAAM1600 out of Ann Arbor Michigan on Sunday---and if you have the time and think you might learn something, have at it.

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Citibank could lose Argentina banking license

If the banking giant obeys a U.S. judge’s order, it risks losing its banking license in Argentina — and the $2 billion it has in local deposits.

But if it follows Argentine law, it risks violating a U.S. federal court order.

Citi finds itself in this precarious position after Manhattan federal court judge Thomas Griesa — who is overseeing the bitter battle between hedge-fund mogul Paul Singer and Argentina over an estimated $3 billion due on bonds defaulted upon in 2001 — ordered the bank not to pay out on some of the country’s locally issued bonds.

Griesa initially exempted Citi’s Argentine law bonds from his sweeping order — stopping payouts to exchange bondholders unless Argentina also paid Singer and other holdout bondholders who demanded full payment.  But Griesa changed his mind last month after learning that some of the bonds for which Citi is custodian were also exchange bonds.

This very interesting "Catch-22" situation appeared on The New York Post website at 10:50 a.m. EDT on Monday morning---and it's courtesy of South African reader B.V.

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Another Eyjafjallajokull? Airlines on alert as Iceland's largest volcano threatens to erupt and create chaos for air travellers

Airlines are on high alert after geologists warned that an Icelandic volcano may be close to erupting.

Officials issued a ‘code orange’ to travel firms after intense seismic activity at the Bardarbunga volcano in the island’s centre.

It is the second highest level of risk, signalling ‘heightened or escalating unrest with increased potential of eruption’, according to the International Civil Aviation Organisation.

The alert will raise fears of a repeat of the chaos seen when Iceland’s Eyjafjallajokull volcano erupted in 2010.

A dust cloud shut down much of Europe’s airspace for six days, affecting more than ten million people and costing £1.1billion. Passengers were stranded as 100,000 flights were cancelled during the Easter holidays.

This article appeared on the dailymail.co.uk Internet site at 11:26 a.m. BST yesterday---and was updated twice since midnight BST on their Wednesday morning.  It's definitely worth reading---and although you may be shocked by this, I found this story all by myself!

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U.K. ambassador ‘lobbied’ U.S. senators to obscure Britain’s complicity in CIA rendition program

Records published under Britain’s Freedom of Information (FOI) Act have compounded concerns that the U.K. government lobbied U.S. officials to keep Britain’s role in CIA torture and rendition out of a soon-to-be published Senate report.

Newly-released data reveals Britain’s ambassador to the U.S., Peter Westmacott, engaged in at least 21 separate meetings with members of the US Senate’s Select Committee on Intelligence (SSCI) prior to its publication of this report, heightening existing allegations that the British government may be seeking to sanitize the document.

Westmacott met with key Democrats and Republicans on the SSCI throughout the body’s investigation of the CIA program, records obtained by the UK legal charity Reprieve reveal.

Of particular note are two separate meetings with Senator Feinstein in the immediate aftermath of the U.S. government’s decision to publish what is expected to be a damning report on CIA torture, interrogation and rendition.

This very interesting, but not surprising story appeared on the Russia Today Internet site at 12:55 p.m. Moscow time on their Tuesday afternoon, which was 4:55 a.m. EDT---and it's the first offering of the day from Roy Stephens.  It's worth reading if you have the time.

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First Briton pleads guilty to Libor rigging

Paul Robson, a former trader at Rabobank, has become the first Briton to plead guilty to being part of the worldwide conspiracy to rig the Libor interest benchmark.

The executive, who worked at the Dutch bank’s London office, admitted before a New York court to one count of bank fraud and wire fraud, as part of a conspiracy that also involved the taxpayer-backed Lloyds Banking Group.

The scheme, which was designed to boost profits at the companies involved, which affected mortgage rates and pension payments around the world, estimated to have cost the public trillions of pounds.

According to the Department of Justice, Mr Robson worked with two other named Rabobank traders, as well as unnamed traders at other organisations including Lloyds, to manipulate Yen Libor between 2006 and 2011.

This news item showed up on the telegraph.co.uk Internet site at 11:49 p.m. BST on Monday evening---and I found it in a GATA release yesterday.

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Greek stock recovery fading away as ASE falls 21 pct on valuations

The curtain is coming down on Greece’s star turn with international equity investors.

Among the best-performing Europe gauges in 2013 after the government carried out the world’s biggest-ever debt restructuring, Greece’s ASE Index has become one of the worst, slumping 21 percent as lenders from Piraeus Bank SA to Eurobank Ergasias SA tumbled. Drops are trimming returns that approached 200 percent starting in June 2012 amid investments from hedge funds such as Paulson & Co. and Third Point LLC.

Equities with valuations triple the rest of Europe have come too far to be justified by an economy that is poised to emerge from a six-year recession, says Peter Garnry, head of equity strategy at Saxo Bank A/S. Investors are looking elsewhere in emerging markets for bargains as sanctions hitting Russia, Greece’s biggest trading partner, disrupt businesses.

“Greece was the trade last year, but I don’t think it’ll be the trade next year,” Garnry said in a phone interview from Hellerup, Denmark. “Investors looking for good returns should look elsewhere.”

This news story appeared on the Greek website ekathimerini.com at 10:55 a.m. local time on Tuesday morning---and it's courtesy of Harry Grant.

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E.U. compensates fruit and veg growers hit by Russian ban

The European Commission has announced emergency E.U. funding of €125m (£100m; $170m) for fruit and vegetable growers hit by Russia's ban on most imported Western food.

The funding is compensation for fresh produce which will not be sold. Instead it will be distributed free to schools, hospitals and other institutions.

Tomatoes, peppers, cucumbers, grapes and pears are included in the scheme.

Germany's Chancellor Angela Merkel insisted on Monday that the E.U. sanctions must stay in place "in order to show how serious we are" on the Ukraine crisis.

That much money is a drop in the bucket---literally.  I posted a story about this in my Tuesday column, but this BBC article is far more comprehensive---and I thank reader B.V. for his second contribution to today's column.

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Merkel sets limits to NATO solidarity with Baltic states

German chancellor Angela Merkel has said NATO will defend Baltic states if need be, but will not build permanent military bases in the region.

She spoke on Monday (18 August) on a visit to Riga in which she also laid a wreath at the Freedom Monument, a memorial to the Latvian War of Independence against Russia in 1918.

"I want to stress that ... Article V of the NATO contract - the duty to provide mutual support - is not something which just exists on paper, but is also something which must be filled with life”, she told press after meeting Latvian prime minister Laimdota Straujuma.

She noted that German jets will start NATO air policing operations in Latvia on 20 August and that NATO is to build up a rapid reaction force to be used if Russia tries to destabilise its Baltic neighbours on the Ukraine model.

This news item appeared on the euobserver.com Internet site at 9:21 a.m. Europe time on Tuesday morning---and it's the second offering of the day from Roy Stephens.

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Donetsk Republic Guarantees Safety of Humanitarian Convoy

The government of the self-proclaimed Donetsk People’s Republic (DPR) has guaranteed safe passage for Russia’s humanitarian convoy and the International Committee of the Red Cross (ICRC) employees accompanying it, the republic’s deputy prime minister said Tuesday.

“Our government thinks that the situation in DPR can be described as a humanitarian disaster. Naturally, we want the convoy to visit not only Luhansk, but Donetsk Region cities as well. To that end, we guarantee safety for the drivers of the convoy and ICRC employees,” DPR Deputy Prime Minister Andrei Purgin said.

The prime minister noted that the DPR had already ensured the security of the OSCE mission and international aviation experts on its territory when they arrived in Donetsk to work at the crash site of Malaysia Airlines flight MH17.

"Despite all Kiev’s provocations, despite the fact that Kiev started fighting in the area of the crash, we were able to ensure the security of the experts," Purgin said.

This article appeared on the RIA Novosti website at 1:51 p.m. Moscow time on their Tuesday afternoon---and I thank reader M.A. for sending it.

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Kiev must publish record of MH17 communications with traffic control – Russia

Kiev should make public the records of communications between the Ukrainian air traffic control and the Malaysian Airlines flight 17 in the hours before it was shot down over Ukraine’s turbulent east, Russia’s UN envoy said.

The issue was among several Russia raised at a U.N. Security Council meeting, which was called by Russia to discuss the progress of the investigation into the tragic incident, which killed 298 people in July, Vitaly Churkin said. Moscow sees the shortage of proper evidence known to the public so far as wrong.

“As far as we know, [UN’s civil aviation watchdog] ICAO is being kept on the sidelines of the investigation, which has been conducted for some time,” Churkin said.

This news item showed up on the Russia Today website at 11:50 a.m. Moscow time yesterday morning---and it's the second contribution in a row from reader M.A.

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Next Weeks ‘Decisive’ for Ukrainian Conflict – Kiev Official

The coming two weeks will be decisive for the peaceful settlement in Ukraine, the Kiev government wants to resolve the conflict through means of diplomacy, the deputy head of the Ukrainian president’s administration said Tuesday.

“I think that the coming two weeks will be decisive for transforming war into peace. The telephone diplomacy is giving way to direct contacts” Valeriy Chaliy told reporters, commenting on the forthcoming talks due in Minsk and Brussels on August 26 and August 30, respectively.

Earlier the same day, Ukrainian President Petro Poroshenko's press service said officials from Ukraine, the European Union and the so-called 'Eurasian Trio' (Russia, Belarus, Kazakhstan) will meet in Minsk on August 26 to discuss a number of urgent political and economic issues, including Ukraine's European integration, energy security and the stabilization of the situation in Donbas.

The press service also said Poroshenko had accepted the invitation of President of the European Council Herman Van Rompuy and European Commission President Jose Manuel Barroso to visit Brussels on August 30. In addition to the invitation to Brussels, Barroso and Poroshenko discussed by telephone the issues of granting Ukraine the third wave of EU macro-financial assistance.

This is another article from the RIA Novosti website---and this one appeared their at 8:20 p.m. Moscow time on their Tuesday evening, which was 12:20 p.m. in New York.  This article is courtesy of Roy Stephens.

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Battle for Ukraine: An Inside View of the Surreal Donetsk War Zone

It is a thin veneer that separates guests of the Donetsk Park Hotel from the surreal world outside. Inside, we watch BBC in English and ZDF broadcasting news in German. The hotel has electricity and Internet while air conditioning keeps out the summer heat.

OSCE observers sit at the bar drinking Lvivske, a dark Ukrainian beer, for €2.50 ($3.3) a pint, a price that is outrageous for Donetsk. Their shiny white Toyota SUVs are lined up outside, waiting to drive them through the war zone during those moments when it's not too dangerous.

This Thursday is not one of those moments. Shortly before 1 p.m., a salvo of grenades rains down. One's ear quickly gets used to the sounds of war, rapidly learning to halfway reliably tell them apart. This time, though, the detonations are unbelievably loud and very close. Only three minutes after leaving the hotel, I arrive in the midst of misery in this embattled city of Donetsk.

This very interesting boots-on-the-ground commentary was posted on the German website spiegel.de very early yesterday evening Europe time.  It's worth reading---and I thank Roy Stephens for finding it.

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No Weapons Seen Crossing Russian-Ukrainian Border - OSCE

The Organization for Security and Cooperation in Europe's Special Monitoring Mission working on the Russian-Ukrainian border has not seen any weapons crossing between the countries, an OSCE spokesman working on the Russian side of the border said Tuesday.

“We have not seen any weapons. There was a question of whether we saw military vehicles crossing the border. Yesterday at two [border crossing] points, we didn’t see any military vehicles crossing the border,” Paul Picard said at a briefing.

On August 15, Ukrainian President Petro Poroshenko claimed Ukrainian artillery destroyed Russian military hardware that had allegedly crossed into Ukraine at night.

The announcement came soon after a number of foreign news agencies reported that a convoy of military vehicles with Russian license plates had crossed into Ukraine via the Izvarino border checkpoint.

I said this story was bulls hit when I posted it last week---and now the OSCE spokesman confirms it.  The lies in the Western press are beyond outrageous.  This RIA Novosti article appeared on their Internet site at 1:38 p.m. Moscow time yesterday afternoon---and it's another Roy Stephens offering.

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Ukrainian Refugees Camp in Russia's Rostov Region - 8 Photos

Over 53 thousand Ukrainians fleeing the war zone in southeastern Ukraine, 16,000 of them children, found refuge in Russia's Rostov region by August 14.

According to Russian authorities, over 730,000 Ukrainians were forced to flee their homeland because of war and sought shelter in Russia.

About 58 thousand of them currently reside in temporary accommodation centers.

This brief 8-photo presentation was posted on the RIA Novosti website on Monday---and the photos are worth the trip.  It's another story that Roy dug up for us.

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Getting The Ukraine Narrative Straight: Washington Started This Fight, Not Putin

When even smart people like economist Paul Krugman buy into the false narrative about the Ukraine crisis, it’s hard to decide whether to despair over the impossibility of America ever understanding the world’s problems or to marvel at the power of the U.S. political/media propaganda machine to manufacture its own reality.

On Monday, Krugman’s New York Times column accepts the storyline that Russia’s President Vladimir Putin instigated the Ukraine crisis and extrapolates from that “fact” the conclusion that perhaps the nefarious Putin did so to engineer a cheap land grab or to distract Russians from their economic problems.

Or you could look at the actual facts of how the Ukraine crisis began and realize that it was the West, not Russia, that instigated this crisis. Putin’s response has been reactive to what he perceives as threats posed by the violent overthrow of elected President Viktor Yanukovych and the imposition of a new Western-oriented regime hostile to Moscow and Ukraine’s ethnic Russians.

Robert Parry tells it like it is on this essay posted on the David Stockman website yesterday---and it's the second last offering of the day from Roy Stephens.

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'They want their war---and they want it now' - Adrian Salbuchi

If you are playing a game of chess, and the next moves you are considering all inexorably lead to your king falling into checkmate, then you have only two options: you either topple your king and graciously accept defeat, or…

You can kick over the chessboard, refuse to accept defeat, and let all hell break loose...!

Is that what the “four horsemen of the Apocalypse,” namely the elites running the U.S., U.K., E.U. and Israel against their own peoples’ interests, are thinking of doing?

All parents know that if you allow a young brat to do as he pleases by giving in to his yelling and kicking and sobbing every time he does not get his way it will become increasingly hard to get the little monster to mature and behave in an adult and responsible manner.

This could very well be a metaphor for the way the Western powers have been behaving and acting in recent years, especially since 9/11, which for a while gave them a blank check to run amok throughout the Middle East and beyond.

Including the article posted above this one, if I had to pick one other must read article for you today---this would be it for sure.  This is truly what the Ukraine/Russia imbroglio is all about, with all the political niceties stripped away---one of the last puzzle pieces in the New Great Game---and we've just seen 'the flop' with Ukraine---and what the 'turn' and 'river' cards bring, is unknown as of yet.  It's the last contribution of the day from Roy Stephens---and it was posted on the Russia Today website at 1:12 p.m. Moscow time on their Tuesday afternoon.

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Three King World News Blogs

1. Dr. Stephen Leeb: "Russia Continues to Strengthen Ties With Germany and China"  2. Grant Williams: "Why Gold is Headed Into the Stratosphere"  3. Richard Russell: "New, Terrifying Confiscation to Worry About"

[Please direct any questions or comments about what is said in these interviews by either Eric King or his guests to them, and not to me. Thank you. - Ed]

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Jim Rickards: Warren Buffett and the Chinese Are Loading Up on Hard Assets

This 2:52 minute video clip with Jim was posted on the dailyreckoning.com Internet site last Friday---and it's worth your time, even though you've probably heard him say all this before.

I thank Harold Jacobsen for sending it our way.

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China allows 3 more banks, including Standard Chartered, to import gold

China has allowed three more banks, including a foreign lender, to import gold, sources with direct knowledge of the matter said, as the world's top gold buyer gears up for its strongest effort yet to gain pricing power of the metal.

The move, which brings the number of firms allowed to import gold into China to 15, comes ahead of the launch in September of a new international bullion exchange in Shanghai with which China hopes to become a price-discovery centre.

China and other Asian gold trading centres such as Singapore are calling for more localised pricing of the precious metal as they seek alternatives to the so-called London fix, the global benchmark for spot gold prices, which is being investigated by regulators on suspicion that it may have been manipulated.

This Reuters story, co-filed from Singapore and Shanghai, showed up on their website at 9:08 a.m. BST on Tuesday---and it's something I found on the Sharps Pixley website in the wee hours of yesterday morning.  However, because I was already loaded with stories for my Tuesday column, it had to wait until today.

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Koos Jansen: East Asia geared up for renminbi gold trading

Gold researcher and GATA consultant Koos Jansen reports that off-take from the Shanghai Gold Exchange has been flat for four weeks.

Meanwhile, Jansen writes, "China is developing its market infrastructure not only for physical gold trade but also to expand paper trading to steal pricing power from the dominant forces in the West and to promote the internationalization of the renminbi."

His commentary is headlined "East Asia Geared up for RMB Gold Trading" and it was posted at the bullionstar.com Internet site minutes before midnight local time on Monday.  I found this, along with the above paragraphs of introduction, on the gata.org Internet site yesterday.

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India gold smuggling explodes YoY

According to figures released by the government, between April and June it intercepted $44 million worth of smuggled gold at the country’s airports. That compares with $82 million in the year ended March 31.

Last year, between April and July, the Mumbai airport customs had seized 61.46 kilograms gold, while this year until July, it had seized 403.52 kilograms. The customs officials at the Chennai airport in the South, have also reported seizing much more gold than last year.

Plainly put, thanks to the high import duty imposed last year on the yellow metal by the Indian Government to bring down the nation’s fiscal deficit, gold smuggling is thriving across the country. Last year, the government had hiked the duty to 10 per cent.

Cases of gold smuggling at the two city airports in Mumbai alone have gone up over six times this year, with the customs department recording as many as 497 cases in four months from April, as compared to 79 cases in the corresponding period last year.

This gold-related news item appeared on the mineweb.com Internet site on Monday---and it's worth reading.

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Britain's fat cat pay gap hits new heights as average blue-chip chief executive earns 143 times more than his workers

The High Pay Centre’s research found the widest pay gap at miner Randgold Resources, where boss Mark Bristow earned almost 1,500 times his employees, many of whom are miners based at its sites in Africa.

Bristow received £4.4 million, while his average worker got just £2,968. Second on the list was Sir Martin Sorrell of media giant WPP, who took home a package worth £29.8million – almost 800 times more than his average worker’s salary of £38,265.

If you remember, yesterday's column was headlined "Randgold CEO Just Shrugs as Gold Mining Industry Produces More Metal at a Loss."  If you want to know one of the reasons that the executives of precious metal miners don't care about the price of the product they mine, or their shareholders---and why they won't pursue the price management scheme, you need to look no further than this.  I thank reader 'h c' for digging this story out of the Sunday edition of London's Daily Mail. The first part of the story is worth reading.

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Pierre Lassonde, Franco-Nevada: “Very Few People ‘Get’ This… But It’s Worth So Much Money”

This edition of Sprott's Thoughts is an interview of Pierre Lassonde by Henry Bonner over at sprottglobal.com on Tuesday.

Lassonde is another executive who is more than familiar with the precious metal price management scheme---and who is pretty much bought and paid for as well.

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Lawrence Williams: Is the LBMA Silver Price more transparent than the Fix? No!

So now we have had three days of the new LBMA Silver Price – the new name for the London Silver Fixing given that the term ‘Fix’ is somewhat discredited in modern-day parlance.  The banks involved in the old system, which had fallen to two, wanted to withdraw from it, in part because they felt the process, even if it was a totally honest system, which it probably was, could lay them open to having to defend expensive, and probably spurious, lawsuits and the London Bullion Market Association took upon itself to go out and set up some kind of new silver benchmarking process at very short notice. 

And is this new process any more transparent than the old one – one of the main charges laid against the old Silver fixing process.  The answer so far is probably not!  

Although one assumes it could become more open as the markets get to understand how it operates its new rather obscure process dealing in lakhs of silver rather than ounces, and in converting it back to a per ounce price.  (A lakh is a South Asian term for 100,000 units – in this case ounces.)  Why on earth such a measure was chosen defeats us – it just seems to be another way to obfuscate what should be a relatively straightforward process.

Amen to that---and everyone is in total agreement.  This commentary by Lawrie was posted on the mineweb.com Internet site yesterday---and it's worth the read.

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¤ The Funnies

Here are a couple of more photos from Sunday.  This is a juvenile red-necked grebe from two different angles---and it's almost the size of its parents already.  It's hard to believe that less than a month ago it was still in its egg.  I was amazed how late in the year these birds nested, as I'd been watching them sitting on their eggs for what seemed like forever, but maybe it's a second brood.  I never thought that the eggs would hatch in time for the babies to fledge by the time the snow flew around here.  How wrong I was.









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Freegold Ventures Limited is a North American gold exploration company with three gold projects in Alaska. Current projects include Golden Summit, Vinasale and Rob. Both Vinasale and Golden Summit host NI 43-101 Compliant Resource Calculations.

An updated NI 43-101 resource was calculated on Golden Summit in October 2012 and using 0.3 g/t cutoff  the current resource is 73,580,000 tonnes grading 0.67 g/t Au for total of 1,576,000 contained ounces in the indicated category, and 223,300,000 tonnes grading 0.62 g/t Au for a total of 4,437,000 contained ounces in the inferred category. In addition to the Golden Summit Project the Vinasale also hosts a NI 43-101 resource calculation which was updated in March 2013. Indicated resources are 3.41 million tonnes averaging 1.48 g/t Au for 162,000 ounces, and Inferred resources are 53.25 million tonnes averaging 1.05 g/t Au for 1,799,000 ounces of gold utilizing a cutoff value of 0.5 grams/tonne (g/t) as a possible open pit cutoff. Please send us an email for more information, ir@freegoldventures.com


 
 

¤ The Wrap

A number of readers have asked recently about my opinion on the new Silver Fix, which has attracted much publicity. I thought I had addressed the issue at the time Deutsche Bank quit the Fix, effectively bringing an end to a 117 year old tradition. Then and now, it seemed like a non-event to me because the price of silver (as well as gold and copper) is continuously fixed 24 hours a day on the COMEX. That being the case, I have trouble seeing what difference it could possibly make about what form the replacement fix takes on. I suppose there was a time when the London Silver Fix actually meant something, but that time has long passed. I don’t mean to give short shrift to a topic apparently of great interest to many, but I’m not going to pretend something is important if I don’t think it is. If it turns out that I am wrong and the new Silver Fix is more meaningful than I believe it would be, I’ll acknowledge that in the future. In the meantime, I consider it a non-event. - Silver analyst Ted Butler:  16 August 2014

As is usually the case, nothing much happened from a price perspective until trading began in New York at 8:20 a.m. EDT.  The pop in the dollar, along with the swan dives in gold and silver prices, certainly looked a managed event---but you should make up your own mind on this.  However, there was nothing free market about the fact that all four precious metals were sold down yesterday, as there was no news to account for it whatsoever.

But JPMorgan et al managed to take another slice out of the gold and silver salamis yesterday---and here's what the 6-month charts look like in both gold and silver now that they've been updated with Tuesday's trading data.

Although the silver is inches away from getting into oversold territory, that's certainly not the case in gold.  With such light volume on Tuesday, there wasn't a huge amount of long liquidation by the technical funds in silver in the 'Managed Money' category---and there wouldn't have been much in gold either, I would think.  So I'm still very fearful of the potential to take both these metals down by substantial amounts as 'da boyz' have a lot of work to do to the downside to get these same technical funds out of their current long positions---and probably back on the short side as well.

Of course that means lower prices, but how low is still unknown.

And as I write this paragraph, the London open is less than ten minutes away.  Nothing is happening, or has happened, price-wise in any of the four precious metals during the Wednesday trading day so far.  Net volume in gold is around 8,500 contracts---and silver's net volume is exactly 3,000 contracts.  Nothing to see here.  The dollar continues to crawl slowly higher---and is up about 11 basis points as of this writing.

Yesterday, at the close of Comex trading, was the cut-off for Friday's Commitment of Traders Report---and I would suspect that all of yesterday's trades will be reported in a timely manner considering the low volume.

I happened to glance at the 6-month dollar index chart---and was amazed at how much it was overbought.  It's been like this for a month---and one has to wonder how soon this condition will correct itself---and how violent it might be.  This, of course, will have some effect on precious metals, but only to the extent that it's allowed to have an effect.  So we wait.  Here's the chart.

Another event that's coming up starting tomorrow is the Fed's Jackson Hole Monetary Symposium.  It runs for a couple of days---and it will be interesting to see how the precious metals react, or are allowed to react during that time.

And as I hit the send button on today's effort at 5:05 a.m. EDT, I note that all four precious metals are down from their respective closes in New York---particularly palladium, which is down eleven bucks already.  Net volumes in both gold and silver are higher now, of course, but still very much on the lighter side for this time of day, so it's hard to read too much into the current price action.  Of course I said that at this time yesterday---and look what happened when the Comex opened.  The dollar index is now up 15 basis points.

That's all I have for today and, once again, it's more than enough.

I hope your day goes well---and I'll see you here tomorrow.