The gold price chopped lower in Far East trading until 1:30 p.m. on their Thursday morning. The ensuing rally got rolled over at 11:00 a.m. GMT---and was sold down until shortly before noon in New York. Another rally commenced at that point---and that one lasted until around 3:30 p.m. EST, before chopping a few dollars lower in the the 5:15 p.m. electronic close.
The low and high ticks were reported as $1,176.20 and $1,196.60 in the December contract.
Gold finished the Thursday session at $1,194.50 spot, up $11.40 from Wednesday's close. Net volume, although significantly lower than Wednesday's volume, was pretty decent at around 147,000 contracts.
Silver had a familiar pattern---getting sold down to its low tick of the day in morning trading in the Far East---and then rallying to is 11 a.m. GMT high in London. From that point it got sold down pretty hard until the Comex open---and then it flopped and chopped around with a positive bias for most of the rest of the Thursday trading session in New York.
The low and high were recorded by the CME Group as $15.955 and $16.32 in the December contract.
Silver closed in New York yesterday at $16.25 spot, up 12 cents from Wednesday. Net volume was 29,500 contracts, or thereabouts.
Platinum and palladium had similar charts to gold. Their respective lows were in morning trading in the Far East---and they both chopped quietly higher until mid-afternoon in New York---and then didn't do much after that. Platinum closed up 17 bucks---and palladium was up 6 dollars. Here are the charts.
The dollar index closed in New York late on Wednesday afternoon at 87.69---and worked its way up to its 87.92 high shortly before 9 a.m. in London. From there it got sold down to its 87.51 low tick at 9:30 a.m. EST. Then it rallied [in very volatile trading] for the remainder of the day, closing in New York at 87.70, which was basically unchanged from Wednesday's close.
The intraday price swings in the dollar index are starting to get pretty wild, with the Thursday session being very much a continuation of what went on, on Wednesday. Here's the 5-day chart to put my comments into some sort of 'historical' perspective---and it's price action one wouldn't hope to see in a reserve currency, let alone the world's major reserve currency.
The gold stocks gapped up about 3 percent at the open before sagging a bit into the New York lunch hour. From there they rallied anew before getting sold down a bit in the last thirty minutes of the Thursday trading session. HUI finished the day up 2.37 percent.
The silver stock followed a similar path, but rallied far more substantially during the latter part of the trading day before they too got sold off a bit heading into the close. Nick Laird's Intraday Silver Sentiment Index closed up 2.65%.
The CME Daily Delivery Report showed that 16 gold and zero silver contracts were posted for delivery within the Comex-approved depositories on Monday.
The CME Preliminary Report for the Thursday trading session showed that gold open interest in November remained unchanged at 28 contracts---minus the 16 contracts in the previous paragraph, of course---and silver's November o.i. has remained unchanged all week at 88 contracts. I suppose that there's still a possible delivery surprise coming out of left field between now and next Friday, but from this data it's obvious that the November delivery month will close out quietly as we approach first notice day for the December delivery month.
There were no reported changes in GLD---and as of 9:33 p.m. EST yesterday evening, there were no reported changes in SLV, either.
Since yesterday was Thursday, Joshua Gibbons, the "Guru of the SLV Bar List," updated his website with the goings-on inside SLV as provided by the iShares.com Internet site at the close of business on Wednesday---and here is what he had to say--- "Analysis of the 19 November 2014 bar list, and comparison to the previous week's list: 3,450,391.8 oz were added (all to Brinks London). No bars were removed or had a serial number change.
The bars added were from Korea Zinc (0.8M oz), Krasnoyarsk (0.8M oz), Kazakhmys (0.5M oz), KGHM (0.4M oz), and 18 others. 97% of the bars were never in SLV before (although some were dated 2012/2013).
The overallocation cannot be calculated, as part of one deposit was not completed reflected on the bar list, as there is about 957,379 oz of Tuesday's 2.4M oz deposit that is not yet reflected on the bar list."
The link to Joshua's website is here.
The U.S. Mint had a smallish sales report yesterday. They sold 1,000 gold eagles---500 one-ounce 24K gold buffaloes---and 25,000 silver eagles.
There's a story posted in the Critical Read section about the current silver eagles sales from the U.S. Mint. It's headlined "Eagle sales November 17 to satisfy voracious investor demand"---and you can just click on the headline if you want to read it now.
There was no gold or silver received at the Comex-approved depositories on Wednesday, but decent amount of both metals were reported shipped out. In gold, there was 48,225 troy ounces removed from the Scotiabank warehouse---and the link to that activity is here. And in silver there was 630,404 troy ounces withdrawn, most of which came from the CNT Depository---and the link to that action is here.
Well, The Central Bank of the Russian Federation updated their website with their October data yesterday as I said they would. However, I was rather underwhelmed by the number of ounces of gold that they bought for their reserves during that period---only 600,000---as their governor said that they had purchased 150 tonnes of gold for their reserves so far this year.
Nick added it all up year-to-date---and I checked it myself as well---and it only comes to 133.5 tonnes. As I mentioned in yesterday's column, they had to add 1.2 million ounces to get to the 150 tonne number, which they obviously didn't. But the figures are what they are---and here's Nick's excellent chart.
I have a fair number of stories for you again---and I'll let you play the part of the editor once again.
From his desk in Lower Manhattan, a banker at Goldman Sachs thumbed through confidential documents — courtesy of a source inside the United States government.
The banker came to Goldman through the so-called revolving door, the symbolic portal that connects financial regulators to Wall Street. He joined in July after spending seven years as a regulator at the Federal Reserve Bank of New York, the government’s front line in overseeing the financial industry. He received the confidential information, lawyers briefed on the matter suspect, from a former colleague who was still working at the New York Fed.
The previously unreported leak, recounted in interviews with the lawyers briefed on the matter who spoke anonymously because the episode is not public, illustrates the blurred lines between Wall Street and the government — and the potential conflicts of interest that can result. When Goldman hired the former New York Fed regulator, who is 29, it assigned him to advise the same type of banks that he once policed. And the banker obtained confidential information, along with several publicly available facts, in the course of assignments from his bosses at Goldman, the lawyers said.
This news item appeared on The New York Times website at 9:10 p.m. EST on Wednesday evening---and I found it embedded in a GATA release yesterday morning. It's worth reading.
Moments ago, in the aftermath of the latest scandal involving Goldman's Rohit Bansal getting material information from a NY Fed employee, finally admitted that the original Carmen Segarra "whistleblower" allegations, namely that there was a material weakness (as in it is non-existent) when it comes to the NY Fed's supervision of TBTF banks, by which we mean Goldman Sachs here, were founded and valid when at 4pm on the dot the NY Fed released this:
The Federal Reserve Board on Thursday announced two separate reviews that are underway at the Federal Reserve System to ensure that the examinations of large banking organizations are consistent, sound, and supported by all relevant information.
This Zero Hedge commentary from yesterday is worth your while as well---and it showed up on their Internet site at 4:43 p.m. yesterday afternoon EST---and I thank Washington state reader S.A. for sending it. There was a similar story in the Financial Times which I found in a GATA release yesterday. It's headlined "On the night before hearing, Fed asks if it's too much the tool of investment banks".
Upstate New York is about to be inundated, again, with something chilling: Snow. Meteorologists are predicting another three feet on top of the five-feet-plus already burying Buffalo.
Gov. Andrew Cuomo is calling the early-season snow that has blanketed northern New York and killed seven people a "historic event" that's bound to break records. Deaths have also been reported in Maine, Michigan and elsewhere in the U.S., bringing the toll so far linked to the extreme weather to 20.
Some Buffalo-area residents have been trapped in their snow-bound cars or homes for almost two days. Some 140 miles of Interstate 90, the main artery running across New York, remained closed, from Rochester to the New York-Pennsylvania state line.
This amount of snow if almost unimaginable---and an 'historic event' it is. This story was posted on the upi.com Internet site at 4:36 a.m. EST on Thursday morning---and it's the first offering of the day from Roy Stephens.
The impossible is possible. Never say never.
Wall Street bankers are staring agog at headlines coming from Europe where, in Iceland, the former chief executive of one of the largest banks in the country which was involved in crashing the economy in 2008 has been sentenced to jail time.
As Valuewalk reports, in receiving a one year prison sentence, Sigurjon Arnason officially became the first bank executive to be convicted of manipulating the bank’s stock price and deceiving investors, creditors and the authorities between Sept. 29 and Oct. 3, 2008, as the bank’s fortunes unwound, crashing the economy with it.
It appears he was as shocked by the verdict as Wall Street-ers are, "this sentence is a big surprise to me as I did nothing wrong."
Of course all bankers are as pure as the freshly fallen snow---and it would take no time at all to fill up the world's jails with the crooks inside the world's banking community. This Zero Hedge article appeared on their website at 10:02 p.m. last night EST---and I thank Harry Grant for sending it our way late last night.
The Internal Revenue Service reportedly wants London Mayor Boris Johnson to write a check for taxes he owes to the United States government, but the UK politician says he isn’t paying.
Johnson, 50, has been the mayor of London since 2008 and is considering a bid at Parliament in the near future. In the meantime, however, he might soon find himself in hot water on the other side of the pond. Johnson, who was born in New York but moved at the age of five, told NPR host Susan Page during an interview last week that the US wants him to pay a capital gains tax owed by American citizens who earn income abroad.
Previously, Johnson wrote in a 2006 column that he was “getting a divorce from America” and would renounce his citizenship, noting “for years I have travelled exclusively on a British passport,” and not the US-issued one he also holds. That threat failed to materialize, but a question emailed to the mayor while he was being interviewed by NPR recently might have rekindled his interest — and without a doubt revealed another issue that has peculiarly pitted Johnson against the IRS.
“It is very hard but I will say this: the great United States of America does have some pretty tough rules, you know,” Johnson said. “You may not believe this but if you're an American citizen, America exercises this incredible doctrine of global taxation, so that even though tax rates in the UK are far higher and I'm Mayor of London, I pay all my tax in the UK and so I pay a much higher proportion of my income in tax, then I would if I lived in America.”
This very interesting story put in an appearance on the Russia Today website at 5:26 p.m. Moscow time on their Thursday afternoon, which was 9:26 a.m. in New York. It's the second offering of the day from Roy Stephens.
A decision by UK charity Save the Children to give Tony Blair its annual Global Legacy Award has unleashed a torrent of criticism highlighting the former PM’s role in Britain’s 2003 Iraq war and his controversial business dealings in the Middle East.
The former Labour leader, who is currently a key focus of a public inquiry into Britain’s invasion of Iraq, received the honor on Wednesday night at a star-studded gala hosted by the charity in New York.
Save the Children’s decision to offer Blair the award has provoked outrage across the UK, with critics insisting the move utterly discredits the charity.
This article was posted on the Russia Today Internet site at 6:17 p.m. Moscow time on their Thursday evening---and once again I thank Roy Stephens for sharing it with us.
UKIP has its second elected MP at Westminster after Mark Reckless won the Rochester and Strood by-election.
Mr Reckless received 16,867 votes, 2,920 more than Conservative candidate Kelly Tolhurst's 13,947, with Labour's Naushabah Khan third on 6,713.
The Green Party came fourth, while the Lib Dems got their lowest total ever.
Mr Reckless, whose defection from the Tories to UKIP triggered the contest in Kent, said: "If UKIP can win here, we can win across the country."
This news item appeared on the bbc.com Internet site at 2:42 a.m. EST this morning---and I thank Harry Grant for his second contribution to today's column.
The Dutch government has refused to reveal details of a secret pact between members of the Joint Investigation Team examining the downed Flight MH17. If the participants, including Ukraine, don’t want information to be released, it will be kept secret.
The respected Dutch publication Elsevier made a request to the Dutch Ministry of Security and Justice under the Freedom of Information Act to disclose the Joint Investigation Team (JIT) agreement, along with 16 other documents. The JIT consists of four countries - the Netherlands, Belgium, Australia and Ukraine - who are carrying out an investigation into the MH17 disaster, but not Malaysia. Malaysian Airlines, who operated the flight, has been criticized for flying through a war zone.
Part of the agreement between the four countries and the Dutch Public Prosecution Service, ensures that all these parties have the right to secrecy. This means that if any of the countries involved believe that some of the evidence may be damaging to them, they have the right to keep this secret.
“Of course [it is] an incredible situation: how can Ukraine, one of the two suspected parties, ever be offered such an agreement?” Dutch citizen Jan Fluitketel wrote in the newspaper Malaysia Today.
Wow! You couldn't make this stuff up! This Russia Today news item was posted on their website at 12:41 p.m. Moscow time on their Thursday afternoon---and it's courtesy of reader 'h c'. It's worth reading.
Second Mistral-class amphibious assault ship built in France under contract with Russia was floated out Thursday, a RIA Novosti correspondent reported.
The helicopter carrier, named the Sevastopol, left its dry dock in the French port city of Saint-Nazaire before just a few onlookers, our correspondent noted.
Russia and France signed the $1.5 billion deal for two Mistral-class ships in June 2011. The first carrier, the Vladivostok, is expected to join the Russian Navy by the end of this year, while the Sevastopol is due to arrive in Russia in 2015.
But the deal has been in jeopardy after the West slapped Russia with economic sanctions over Ukraine. French President Francois Hollande in October threatened to suspend the deliveries of the ships, citing Russia’s alleged involvement in the Ukrainian conflict — a claim that Moscow has repeatedly denied.
This story appeared on the sputniknews.com Internet site at 8:28 p.m. yesterday evening Moscow time---and it's also courtesy of Roy Stephens.
Polish fruit farmers blocked a road near Annopol and in Leokadiow in Lubelskie province in the southeastern part of the country on Tuesday, calling for more support from the Polish government after being hit hard by the Russian food embargo. Protesters brought traffic to a halt, moving along a crosswalk with banners, flags and placards.
In response to European sanctions, Russia imposed a one-year import ban on fresh produce from the EU in August. Prior to the embargo, Poland accounted for about 50 percent of apple imports to the Russian market.
The above two paragraphs are all there is to this brief news item that showed up on the Russia Today website at 3:50 p.m. Moscow time on their Wednesday afternoon. Once again I thank Roy Stephens for sending it.
The death rate in the Ukraine conflict has increased in the past eight weeks despite the declaration of a ceasefire in September, the United Nations said on Thursday.
In total, more than 4,300 combatants and civilians have been killed in eastern Ukraine since pro-Russian rebels seized border regions in April. Nearly a million people have fled the area, with a surge in the past two months, the U.N. said.
Since a formal ceasefire was agreed by Ukraine, Russia and the rebels in early September, an average of 13 soldiers, rebels, and civilians had died every day, a report by U.N. human rights monitors said.
This Reuters article, filed from Geneva, appeared on their Internet site at 9:07 a.m. EST yesterday---and it's courtesy of reader M.A.
Why is it that top Western leaders seem to have a tendency toward wisdom only after leaving top office?
During Putin's visit to Australia for the G20 meeting former Australian P.M. Paul Keating gave an interview to Australian TV starkly critical of NATO.
He heavily criticized the West for making a serious error in extending NATO at the end of the Cold War.
He thinks that current events are a result of that flawed decision.
This interesting article appeared on the russia-insider.com website yesterday sometime---and it's courtesy of Roy Stephens once again.
The E.U.’s attempts to coerce Serbia into joining anti-Russian sanctions are nothing but blackmail, says the head of the State Duma Foreign Affairs Committee.
“Presently the European Union is trying to force Serbia, which is not an E.U. member, to join their sanctions program. They are practically blackmailing Serbia: either it joins the sanctions against Russia or [the bloc] won’t see it as a country with a chance of joining the E.U.,” M.P. Aleksey Pushkov (United Russia) told reporters at a Thursday press conference in Moscow.
“The problem for Serbia is that in any case it has no prospects for joining the EU anytime soon. Even if they join the anti-Russian sanctions now, they would simply succumb to blackmailers and no one would accept them in the E.U. in one year for doing this,” he added.
The comments came after E.U.’s Enlargement Commissioner Johannes Hahn said that Serbia would have to join E.U. sanctions against Moscow if it wants to be part of the European Union.
This is another article from the Russia Today website---and this one was posted there at 10:43 a.m. Moscow time on their Thursday morning, which was 2:43 a.m. EST. Once again I thank Roy Stephens for bringing it to our attention---and it's certainly worth reading.
A state-owned Chinese company has signed a $12 billion agreement to build a railway along Nigeria's coast that it billed as China's single largest overseas contract, state media said Thursday.
China Railway Construction Corp. Ltd. (CRCC) signed the official construction contract with the Nigerian government on Wednesday in Abuja, the Xinhua news agency said.
The Nigerian railway will stretch for 1,402 kilometres (871 miles) along the coast, linking Lagos, the financial capital of Africa's largest economy and leading oil producer, and Calabar in the east, according to the report.
The $11.97 billion deal marks China's largest single overseas contract project so far, it said, citing CRCC.
This interesting article, filed from Beijing, appeared on the france24.com Internet site at 8:45 a.m. Europe time on their Thursday morning, which was 2:45 a.m. in New York. My thanks go out to South African reader B.V. for finding it for us.
Manufacturing activity in China stagnated in November, British banking giant HSBC said Thursday (Nov 20), warning of "significant" pressures on the world's second-largest economy as its key purchasing managers' index (PMI) hit a six-month low.
HSBC's preliminary PMI for the month came in at the 50.0 breakeven point dividing expansion and contraction, the bank said in a statement. It was lower than October's 50.4 and was the weakest reading since May's 49.4, according to the bank's data.
The index tracks activity in China's factories and workshops and is a closely watched indicator of the health of the economy, a key driver of global growth.
Protracted easing in new export order growth led output to contract for the first time in six months, while lingering deflationary pressures suggested domestic demand remained insufficient, Qu Hongbin, HSBC's economist in Hong Kong, said in the statement.
This news story put in an appearance on the channelnewsasia.com Internet site at 11:39 a.m. Singapore time on their Thursday morning---and it's the second offering of the day from reader M.A.
Brazil's Petrobras is the most indebted company in the world, a perfect barometer of the crisis enveloping the global oil and fossil nexus on multiple fronts at once.
PwC has refused to sign off on the books of this state-controlled behemoth, now under sweeping police probes for alleged graft, and rapidly crashing from hero to zero in the Brazilian press. The state oil company says funding from the capital markets has dried up, at least until auditors send a "comfort letter".
The stock price has dropped 87pc from the peak. Hopes of becoming the world's first trillion dollar company have deflated brutally. What it still has is the debt.
Moody's has cut its credit rating to Baa1. This is still above junk but not by much. Debt has jumped by $25bn in less than a year to $170bn, reaching 5.3 times earnings (EBITDA). Roughly $52bn of this has been raised on the global bond markets over the last five years from the likes of Fidelity, Pimco, and BlackRock.
This longish, but must read article by Ambrose Evans-Pritchard appeared on the telegraph.co.uk Internet site at 9:52 p.m. GMT on their Wednesday evening---and it's the final offering of the day from Roy Stephens. I thank him on your behalf, dear reader.
“One focus for the subcommittee is the management of Detroit-area metal warehouses run by Metro Trade Services International, the largest U.S. warehouse company certified to store aluminum warranted by the London Metal Exchange for use in settling trades.
Since Goldman bought Metro in 2010, Metro warehouses have accumulated up to 85 percent of the U.S. LME aluminum storage market...
Since Goldman took over the warehouses, the wait to withdraw LME-warranted metal has increased from about 40 days to more than 600 days, reducing aluminum availability and tripling the regional premium for storage and delivery costs...
The investigation revealed a number of previously unknown details about these deals: that Goldman’s warehouse company paid metal owners to engage in “merry-go-round” deals that shuttled metal from building to building without actually shipping aluminum out of Metro’s system; that the deals were approved by Metro’s board, which consisted entirely of Goldman employees; and that a Metro executive raised concerns internally about the appropriateness of such “queue management.
This news item was posted on the zerohedge.com Internet site at 9:28 a.m. EST yesterday---and it's courtesy of reader M.A.
Sales by the United States Mint to its authorized purchasers (APs) of 2014 American Eagle 1-ounce silver bullion dollar coins resumed Nov. 17, 12 days after being suspended because of a depleted inventory.
Sales resumed after the U.S. Mint was able to replenish its stockpile of coins. The U.S. Mint had 1,525,000 of the 2014 American Eagles silver dollars available Nov. 17 for APs to purchase on an allocation basis, and those purchasers bought 1,012,000 coins from the total allotted.
The U.S. Mint has experienced significantly increased investment demand over the past several weeks. Through the close of business Nov. 17, the Mint recorded cumulative sales of 40,393,000 of the silver American Eagles. Sales of the coins in 2014 are on track to break the 2013 sales record of 42,675,000 coins. (Cumulative sales may include coins minted in more than one year, so are not the same as yearly mintages.)
As I've said on many occasions all year long, this "investment demand" that they're talking about is NOT coming from John Q. Public. That narrows it down to Ted Butler's Big Buyer. This brief article appeared on the coinworld.com Internet site on Tuesday---and I thank reader Tolling Jennings for sharing it with us.
Some of the biggest price moves in gold since late October have, unusually, occurred in Asian hours and traders more accustomed to following the lead of their Western counterparts suspect a big increase in algorithmic trading may be to blame.
Sensitivity to the dollar-yen exchange rate may also help explain the moves, although some traders speculated that the timing looked suspiciously like attempts to catch Chinese traders off-guard during their lunch break.
Liquidity in Asia tends to be thin until Europe wakes up but recent weeks have been different: COMEX gold futures, the busiest gold contract in the world, have suffered sharp sell-offs in Asia, sometimes sparked by the news flow or currency moves but often for no identifiable reason.
"I have spoken to a lot of people about it and the general consensus seems to be that there is a big increase in algorithmic and high-frequency trading in this time zone nowadays as it can be quite easy to push about," he said.
It's JPMorgan et al---probably hand-in-hand with the BIS---and I've been writing about this for years. Only now does the main stream media get interested, but it's an absolute guarantee that they won't dig any deeper. This Reuters article, filed from Singapore, appeared on their website at 2:05 a.m. EST yesterday morning---and I found it in a GATA release.
From looking at rising SGE withdrawals and Indian import in recent months, we knew demand was increasing consistently and huge amounts of physical gold had to be supplied from somewhere. As I’ve written in a previous post, this type of gold demand can’t be met by just mine supply and so the metal has to be sourced from countries that have large stockpiles, the usual suspects: the U.K., Hong Kong and Switzerland.
In 2013 the U.K. was severely drained (net 1,424 tonnes), last week we learned Hong Kong became a net exporter since August 2014, the latest trade data from Switzerland shows the Swiss net exported 100 tonnes of fine gold in October---75 tonnes net to India and 45 tonnes net to China.
Customs data of the usual suspects (Switzerland, the U.K. and Hong Kong) is getting exciting; they can’t net export gold forever. We know there are often shortages in these trading hubs, it’s only the price of gold that tells us otherwise.
The Financial Times reported there are currently shortages in London, from November 14: As one refiner told me: “Over the past four weeks my cost of hedging has risen by 30 per cent. Not only that, but there is not enough liquidity in the physical market in London to settle my obligations as they come due. I have to fly gold from Zurich to London, because there just is not enough gold on offer in London. You never used to have to do that.”
The export numbers in the second paragraph don't add up, as 75 and 45 add up to 120 tonnes, so I'll be interested to see if Koos has an explanation for this in his next commentary. This was posted on the bullionstar.com Internet site yesterday sometime---and despite the above issue, it's definitely worth reading. I found it over at the gata.org Internet site.
GATA consultant and Bullion Star market analyst Koos Jansen got a prominent place this week in a report on gold broadcast on the "Een Vendaag" ("One Today") news program of the Netherlands public television network, Nederland 1.
The program had a nationwide audience in the Netherlands. It covered the Swiss Gold Initiative, substantial gold buying by China and Russia, the German Bundesbank's attempt to repatriate its gold from the Federal Reserve Bank of New York, and the possibility of a transformation of the world financial system that would reintroduce gold in some form. The program is not quite 8 minutes long---and can be viewed at Bullion Star's Internet site.
The program is in Dutch but you can activate excellent English subtitles by clicking on the "CC" button at the bottom of the YouTube window---and there's a transcript as well. This is another story I found on the gata.org Internet site---and it's worth your while.
The Dutch central bank has secretly brought a large part of the national gold reserves being held in a secure depot in New York back to Amsterdam.
In total, 120 tonnes of gold valued at €4bn has been brought back to the Netherlands by ship, Nos television said.
The high security reparations for the move took months.
The central bank decided to bring some of its gold reserves back to the Netherlands to ensure a better spread, the bank said in a statement.
In addition, the bank hopes to boost consumer confidence by showing there is enough gold in the Netherlands to take the country through a new economic crisis.
So, why can't/won't Germany do the same thing. This story was posted on the dutchnews.nl website this morning--and I found it on the Sharps Pixley website.
A few weeks ago I heard a rumor that the Netherlands were repatriating some of their official gold reserves from the FRBNY. From one of my sources I even heard which security logistics company is shipping the metal, but I was kindly asked to not share this company’s name.
Last week I was approached by a financial journalist, Theo Besteman, from the biggest newspaper in The Netherlands, De Telegraaf. He asked me if I knew anything about the repatriation of Dutch gold from the FRBNY as he heard from several sources DNB was following the German central bank in repatriating gold (for the ones that are under the assumption Germany has ceased its repatriation program, please read this). I told him I heard some rumors about it and that the source was one of the big security logistics companies. He wanted to know which one, but I couldn’t tell him that. Apparently the rumors were true and Besteman did a good job finding out what was happening. The front page of De Telegraaf today: Gold Shipped In Utmost Secret.
De Telegraaf reports that for years there have been doubts at the DNB if the Dutch gold was still in New York. After a very secret and almost military operation DNB has shipped gold from Manhattan to Amsterdam, to bring about a more balanced allocation of its gold reserves and give the Dutchcitizensmore confidence by storing the goldon ownsoil to guidethe country, ifnecessary, through a following major crisis. In the previous weeks many armored trucks were seen at the DNB in Amsterdam.
The impact of the Dutch gold repatriation can be huge. First of all, because it underlines more and more countries are getting nervous about their gold reserves stored in the U.S. Venezuela repatriated most of its reserves from abroad in 2012, the year Germany also announced a repatriation schedule from the US and France. While Germany settled with the US to ship 300 tonnes spread over 8 years, the Dutch set a new trend to insist on immediate delivery. If more counties will follow there can be a global run on gold.
This commentary by Koos is also one I plucked from the Sharps Pixley website this morning---and it's an absolute must read. It was posted on the bullionstar.com Internet site late on their Friday evening.
Gold miners' costs are mostly higher than current spot prices, increasing the likelihood of write downs next year, according to Nick Holland, chief executive officer of Gold Fields Ltd.
Across the industry, costs are about $1,300 an ounce including debt repayments, Holland said by phone from Johannesburg today, citing analysts' research. Gold dropped 0.1 percent to $1,182 an ounce, bringing the decline since the beginning of 2013 to 29 percent.
"The industry by and large is under water," Holland said. "I would expect further write downs. Production I think will be curtailed but it will take some time to filter through the system."
Nick Holland certainly knows what's going on inside the gold market, but won't breath a word of it. This Bloomberg story, filed from Johannesburg, showed up on their website at 12:44 a.m. Denver time yesterday morning---and it's another gold-related story I found on the gata.org Internet site.
First Majestic is a mining company focused on silver production in México and is aggressively pursuing the development of its existing mineral property assets. The Company presently owns and operates five producing silver mines; the La Parrilla Silver Mine, the San Martin Silver Mine, the La Encantada Silver Mine, the La Guitarra Silver Mine, and the Del Toro Silver Mine. Production from these five mines is anticipated to be between 12.70 to 13.35 million ounces of pure silver or 14.85 to 15.60 million ounces of silver equivalents in 2014. Please visit our website for more information.
I remain amazed that the world continues to miss the most important distinction between gold and silver, namely, how much of each exists. After all, something has to explain why the world’s investors are completely unaware of the physical and financial facts surrounding silver. I’ll tell you straight out – if there were only $15 billion worth of gold inventories in the world, I’d probably be a bigger gold bull than silver bull - if you can imagine that.
Fifteen billion dollars is such a pitifully small amount for what might exist in world inventories for either gold or silver that it would be reason enough to buy either if that valuation applied. Well, it does apply to silver and doesn’t apply to gold where the amount of gold in the world is measured in the trillions of dollars ($6.5 trillion, to be precise). Furthermore, very little of the $15 billion worth of world silver inventories is available for sale – according to ETF and inventory flows. I can’t prove it, but I doubt that if someone tried to buy just one billion dollars’ worth of physical silver currently (60 million oz), the transaction could not be completed below $30. - Silver analyst Ted Butler: 19 November 2014
Despite the positive close yesterday, gold wasn't allowed a sniff of the $1,200 spot price mark---but the gold price is getting dangerously close to its 50-day moving average [currently $1,208 the ounce] which has now drifted down to within fifteen bucks of yesterday's closing spot price. The silver price is almost a dollar away from its 50-day moving average, so there's miles to go in that metal.
Here are the 6-month charts for gold and silver, so you can see this for yourself.
Once JPMorgan et al allow one or both of these metals to break above their respective 50-day moving averages, we'll find out in a hurry whether they'll step in front of them as sellers of last resort once again and kill them with little or no gains---something they've done twice already this year. If they don't, then their respective prices will fly. And as both Ted and I have stated on many occasions---nothing else matters---and it doesn't.
And as I write this paragraph, the London open is fifteen minutes away. Gold and silver prices are unchanged from yesterday's close in New York, but both platinum and palladium popped a bit in the last half hour or so. Net gold volume is around 18,000 contracts---and silver's is almost microscopic at 2,500 contracts. The dollar index is rallying off its earlier low---and is down 7 basis points at the moment.
Both Ted Butler and I are more than interested in how the Friday trading session unfolds today, as we've had two surprise Friday rallies in a row that came totally out of the blue---and both times the 'Big 8' traders used [or most likely engineered] these rallies to cover significant amounts of their short positions in silver---and gold as well. As Ted said in the quote in The Wrap section of my Thursday column, it appeared that the strange price volatility on Wednesday was engineered by 'da boyz' for the same purpose.
Today at 3:30 p.m. EST we get both Commitment of Traders Reports for positions held at the close of COMEX trading on Tuesday. We've had the second of the two big Friday rallies in both gold and silver during the reporting week---and I'll be more than interested in what these reports tell us. I'll have it all for you in Saturday's column.
And as I fire today's column out the door at 5:59 a.m. EST, I note that gold and silver got sold down below yesterday's close in New York, shortly before 9 a.m. GMT in London---and are now back above unchanged, but gold is still being held below the $1,200 spot price mark. Both platinum and palladium are still up on the day and attempting to break out to the upside. Net gold volume is now around 53,000 contracts---and silver's net volume has blown out to 10,000 contracts. The dollar index, which was down 7 basis points when I last reported on it fifteen minutes before the London open, took off to the upside minutes after the London open---and now stands at 88.03---up 33 basis points at the moment---but off its 10:00 a.m. GMT high tick.
I'm somewhat surprised that JPMorgan et al didn't use the dollar rally to beat the living snot out of the gold and silver prices when that happened, but the day is still young---and the COMEX trading session is dead ahead. But the fact that they didn't may mean they have other problems at the moment.
As I alluded to a few paragraphs ago, in light of what happened during the prior two Friday's trading sessions, the Friday session today could prove interesting---and absolutely nothing will surprise me when I check the charts later this morning.
That's all I have for today. Enjoy your weekend, or what's left of it if you live west of the International Date Line---and I'll see you here tomorrow.