Casey Research Publication
Gold & Silver Daily
"Yesterday was another prime example of the bullion banks running the gold and silver price show, as it certainly had nothing to do with the U.S dollar."
 

¤ Yesterday In Gold & Silver

The gold price started off on Sunday night the way it normally has for the past several months...rising sharply.  Within thirty minutes, a not-for-profit seller showed up and had it sold back down to unchanged in a little over an hour.

From there, the gold price behaved itself until the London a.m. gold fix which came shortly after 10:30 a.m. in London.  From there it got sold off to its London low, which came a few minutes after 1:00 p.m. local time...8:00 a.m. in New York.

The price then rose into the London p.m. gold fix at precisely 10:00 a.m. Eastern time...and after a tiny double top...that, as they say, was that.  The New York low was set about 2:10 p.m. Eastern time in the thinly-traded New York Access Market...and from there traded sideways into the 5:15 p.m. close.

The gold price closed at $1,723.20 spot...down $22.10 on the day.  Volume was around 124,000 contracts.

Silver started the same way as gold in Sunday night trading in New York...a sharp rise getting sold off.  Silver didn't do much after that.  It's New York high was also precisely at 10:00 a.m. Eastern time...3:00 p.m. in London...right at the p.m. gold fix.

Then at 10:30 a.m. Eastern...after a tiny double top...JPMorgan et al showed up.

Silver which, up to that point, had spent most of the Comex trading session in the black...closed at $32.08 spot...down 56 cents on the day.  Silver's low tick [$31.79 spot] came at 3:30 p.m. Eastern time right on the button.  Volume was 32,000 contracts...give or take.

The dollar fell about 60 basis points between 1:00 and 10:30 a.m. Eastern time on Monday morning...and then rose sharply, gaining everything back by the close of trading, finishing basically unchanged on the day.

You will carefully note that neither gold nor silver gained a penny while the dollar was falling 60 basis points...but turned in all their losses when the dollar rallied 60 basis points starting at 10:30 a.m. Eastern time.

You would be correct if you thought that it doesn't pass the smell test.

The gold stocks peaked about 10:45 a.m. in New York...and then slid into the close...but did not close on their lows.  The HUI only finished down 0.76% on the day...a fact which I found encouraging.

It was pretty much the same for silver stocks...and Nick Laird's Silver Sentiment Index was only down 0.48%.

(Click on image to enlarge)

Yesterday's Daily Delivery Report from the CME showed that 358 gold, along with zero silver contracts, were posted for delivery on Wednesday.  It was all the usual suspects as shorts/issuers and longs/stoppers.

The first five delivery days in December showed that 54.3 tonnes of gold has been issued for delivery by the shorts...and accepted by the longs.  The shorts always deliver to the longs.  The shorts are 'Issuers'...and the longs are 'Stoppers'...that's the jargon of the trade.  None of this gold left the exchange...it's just changing owners...and rack space over at the Comex. Yesterday's Issuers and Stoppers Report is worth skimming...and the link is here.

The various Comex warehouses would look something like this photo...which, I've been told, is a photo either of the LME vault or the Bank of England.

There were no reported changes in either GLD or SLV yesterday.

But that certainly wasn't the case at the U.S. Mint yesterday.  They reported selling 7,000 ounces of gold eagles...6,000 one-ounce 24K gold buffaloes...and 806,000 silver eagles.  Those silver eagle sales represent 58% of all the silver eagles sold in November, so December will be a vast improvement over November.

On Friday, the Comex-approved depositories received 300,052 troy ounces of silver...and shipped 39,678 ounces of the stuff out the door.  The link to that action is here.

Silver analyst Ted Butler posted a lengthy weekly review on the weekend...and here are a couple of free paragraphs...

It’s no secret that I hold the Trust’s sponsor, BlackRock, as being responsible for ensuring that the short position in SLV comes down. They have a fiduciary responsibility to protect SLV shareholders’ interests. Allowing an enormous short position to exist in SLV is most definitely not in SLV shareholders’ best interest. Anyone shorting shares in SLV does not deposit silver to back those shares...and more than 7% of current shareholders do not have metal backing on their shares owned. This is fraudulent to SLV shareholders. The reason it is also manipulation is that by not securing and depositing the 24 million ounces in real metal, the SLV shorts are contributing to the artificially depression of the silver price.

[There are] two key things to watch on the next silver rally of five or ten dollars or more...the concentrated short position of JPMorgan in COMEX silver futures...and the short position in shares of SLV. If either grows significantly, that will be a clear-cut sign that the silver manipulation lives [on].

Here's an interesting graph that Washington state reader S.A. sent me yesterday.  The comments imbedded in the graph tells you all you need to know.

Since it's Tuesday, I have lots of stories for you today...and the final edit is up to you.

 

¤ Critical Reads

Lies, Damned Lies, and [Unemployment] Statistics

There are three kinds of lies, wrote Mark Twain in 1906, “lies, damned lies, and statistics.” Take a page from his book and consider that the latest unemployment report is nothing more than an attempt by the custodians of our government, who are increasingly coming under fire from the populace, to hide the fact that their grand plans for centralizing social, financial and economic control are failing miserably.

This excellent synopsis about the B.S. in the BLS statistics last Friday, is posted over at the wealthwire.com website.  I thank Australian reader Wesley Legrand for sending it along...and the link is here.

Read more...

The Mythical "Great Moderation" - Doug Noland

"I believe the European debt Bubble has burst – and this would no doubt be a momentous development.  For years, European debt was being mispriced in the (over-liquefied, over-leveraged and over-speculated global) marketplace.  Countries such as Greece, Portugal, Ireland, Spain and Italy benefitted immeasurably from the market perception that European monetary integration ensured debt, economic and policymaking stability.  Similar to the U.S. mortgage/Wall Street finance Bubble, the marketplace was for years content to ignore Credit excesses and festering system fragilities, choosing instead to price debt obligations based on the expectation for zero defaults, abundant liquidity, readily available hedging instruments, and a policymaking regime that would ensure market stability.  Importantly, this backdrop created the perfect market environment for financial leveraging and rampant speculation – in a New Age global financial backdrop unsurpassed for its capacity for excess.  The arbitrage of European bond yields was likely one of history’s most lucrative speculative endeavors."

This is Doug Noland at the top of his game.  This was a paragraph from last Friday's Credit Bubble Bulletin.  As always, it's posted over at the prudentbear.com website.  I thank reader U.D. for bringing it to my attention...and the link is here.

Read more...

Alasdair Macleod: Raw inflation via SDRs is next in central banking's scheme

Economist and former banker Alasdair Macleod writes that raw monetary inflation via the cashing of Special Drawing Rights from the International Monetary Fund likely will be the next step by central banks to save bankrupt nations, last week's currency swaps having been undertaken to rescue insolvent banks. Macleod's commentary is headlined "Currency Swaps -- the Beginning of a Solution?"

I plucked this story, along with Chris Powell's introduction, from a GATA release yesterday.  The short essay is posted over at the goldmoney.com website...and the link is here.

Read more...

Dr. Dave Janda interviews Jack Abramoff

This interview was done on Sunday over at all-talk radio WAAM 1600...Dr. Dave's Operation Freedom show.  Dave says that the interview contains information that all of us need to be aware of...immediately.  The audio interview runs about 30 minutes...and the link to the mp3 file is here.

Read more...

Furious at Latest U.S. Attack, Pakistan Shuts Down Resupply Routes to Afghanistan "Permanently"

NATO recently literally shot itself in the foot, imperiling the resupply of International Assistance Forces (ISAF) in Afghanistan by shooting up two Pakistani border posts in a “hot pursuit’ raid.

Given that roughly 100 fuel tanker trucks along with 200 other trucks loaded with NATO supplies cross into Afghanistan each day from Pakistan, Pakistan’s closure of the border has ominous long-term consequences for the logistical resupply of ISAF forces, even as Pentagon officials downplay the issue and scramble for alternative resupply routes.

Pakistan, long angry about ISAF/NATO cross border raids, has apparently reached the end of its tether. Following the 26 November NATO aerial assault on two border posts in Mohmand Agency in Pakistan’s turbulent Northwest Frontier Province, Islamabad promptly sealed its border with Afghanistan to NATO supplies after the allied strikes killed 24 Pakistani soldiers.

The U.S. military insists a joint patrol with Afghan forces was fired upon first and only responded with return fire and calling in airstrikes on the posts, which a commander mistakenly identified as Taliban training camps, after reportedly checking that there were no Pakistani military forces nearby. Pakistan Major General Ishfaq Nadeem, director general of military operations, rebutted Washington’s assertions one by one, commenting, "The positions of the posts were already conveyed to the ISAF through map references and it was impossible that they did not know these to be our posts."

This story was posted over a the oilprice.com website last Thursday...and it's reader's U.D.'s second offering of the day.  It's definitely worth the read..and the link is here.

Read more...

France withdraws embassy staff from Iran

France is repatriating a number of diplomats and their families from Iran following an attack on the British embassy in Tehran.

French officials said the move was a temporary security measure.

Britain expelled 25 Iranian diplomats following Tuesday's attack, when hundreds stormed the British embassy.

This bbc.co.uk story was posted on their website on Saturday...and I thank Washington state reader S.A. for bringing it to my attention.  The link is here.

Read more...

Memo From Istanbul: For Turkey, Lure of Tie to Europe Is Fading Fast

When Recep Tayyip Erdogan, the charismatic prime minister, first swept to power in 2002, he made Turkey’s entry into the European Union his overriding goal. Determined to anchor the country to the West, Mr. Erdogan’s Muslim-inspired Justice and Development Party tackled thorny issues like improving minority rights and easing restrictions on free speech to move Turkey closer to Western norms.

But Turkey’s bid was greeted with skepticism and even disdain by some members of the union, not least because of Turkey’s large, almost entirely Muslim population. The negotiations dragged on endlessly without ever yielding a clear pathway to membership.

Now it is Turkey that has soured on the idea, analysts here say...and as economic contagion tarnishes the European Union, a newly assertive Turkey is increasingly looking east instead of west, and asking a vexing question: Should Turkey reject Europe before Europe rejects Turkey?

This story appeared in the Sunday edition of The New York Times...and is Roy Stephens first offering of the day.  This is well worth your time...and the link is here.

Read more...

Blocking Tactics: UK Infuriating Partners by Obstructing EU Foreign Policy

The British government is trying to obstruct the establishment of a common EU foreign and security policy. The formation of an autonomous military headquarters failed last week after Britain alone resisted the move. The government of Conservative Prime Minister David Cameron has also been preventing the EU from issuing joint statements in international organizations.

London commissioned a legal report that cast doubt on the EU's role in many foreign policy issues. For example, when the EU ambassadors agreed to a common statement at the World Health Organization in Geneva, the British representative vetoed the move, saying the issue wasn't a matter of foreign policy but of health policy -- and therefore fell under national sovereignty.

The British have been using similar nit-picking arguments in other UN organizations and at the Organization for Security and Co-operation in Europe (OSCE) in Vienna, on issues such as peace missions and disarmament conferences.

This spiegel.de story from yesterday is Roy Stephens second offering of the day...and the link is here.

Read more...

Fiskalunion is worst of all worlds for Europe

She means prior vetting of fiscal plans. She means automatic fines, cuts in EU development funds, and loss of EU voting rights for alleged violators, all justifiable before the European Court.

The correct term is 'Stability Union', as the Chancellor calls it at home. It certainly entails unprecedented intrusion into the internal affairs of sovereign states, but in one direction only: discipline, without transforming help.

The Greeks have had a taste of this with EU commissars lodged in each ministry under the occupation terms of their loan package, and it may come back to bite Germany itself one day as the economic cycle plays its trick.

This Ambrose Evans-Pritchard offering was posted on Sunday evening in The Telegraph...and is another contribution from Roy Stephens.  The link is here.

Read more...

Germany: a reason why fiscal union and ECB funny money won't happen

Market denizens are desperate for "fiscal union" before the end of the year. The phrase is code for the mighty Germany agreeing to stand behind the liabilities of the more profligate single currency members – something that frazzled debt markets crave.

All last week, speculation rose that "a grand European bargain" is coming. Germany, we're told, will soon agree to clean-up the eurozone's mess, in return for a more assertive pan-European role.

On cue, Italian 10-year sovereign debt traded below the crucial 7pc level, beyond the "bail-out" zone. Spanish sovereign bond yields similarly eased. I have to say, though, analyzing what Merkel actually told the deeply-suspicious lower house of the German Parliament, I see scant evidence of "fiscal union" happening any time soon.

This story appeared on The Telegraph's website late on Saturday night...and I thank Roy Stephens once again.  The link is here.

Read more...

Here Comes The S&P Downgrade Barrage - Full Statement, In Which S&P Says France May Get Two Notch Downgrade

Standard & Poor's Ratings Services today placed its long-term sovereign ratings on 15 members of the European  Economic and Monetary Union (EMU or eurozone) on CreditWatch with negative implications.

This zerohedge.com piece was sent to me by reader Matthew Nel...and the link is here.

Read more...

Wall St. Groups Sue Regulator to Challenge New Trading Rule

Wall Street sought to deliver another blow to the financial regulatory overhaul on Friday, as two industry trade groups sued a federal regulator over a new rule restricting speculative trading.

The Securities Industry and Financial Markets Association and the International Swaps and Derivatives Association filed a lawsuit challenging the Commodity Futures Trading Commission’s so-called position limits rule.

The agency adopted the rule in October to cap the number of contracts a trader can hold on 28 commodities. The vote was an important step in the Obama administration’s effort to enforce the Dodd-Frank overhaul.

I pulled this story out of Ted Butler's weekly review on Saturday.  It was posted over at the dealbook.nytimes.com website last Friday evening...and it's a must read for sure.  The link is here.

Read more...

Swiss America's pro-gold commercials rejected by major TV networks

Longtime GATA supporter Swiss America Trading Corp. reports that two television commercials it produced to advocate purchase of precious metals as a defense against the political "inflatocracy" that controls the U.S. government, have been rejected by all major TV networks.

But the commercials are pretty funny and refer to the likely disappearance of the U.S. gold reserve, and at least you can watch them at Swiss America's Internet site here

This is another item that I borrowed from a GATA release on Sunday...and I thank Chris Powell once again for providing the preamble.  Both commercials are posted over at the swissamerica.com website...and the link is here.

Read more...

Michael Pento, Stephen Leeb and Rick Rule: 3 King World News Blogs

Eric sent me these three blogs yesterday...and I have no time to post them as separate stories.  I've also had no time to read them myself.  But the titles show that they all have something to do with gold.  The link to the Michael Pento blog headlined "S&P Europe Credit Watch & Why Gold Will Skyrocket" is linked here...the Stephen Leeb blog headlined "Expect Gold Price to Double in Twelve Months" is here...and the Rick Rule blog titled "Flight to Quality & 2012 Gold Takeovers" is here.

Read more...

Utah man wants to pay taxes with silver

A Utah man who wants to pay his taxes with silver coins has been rebuffed by state and county officials who claim it's impractical to accept the precious metals despite a state law making them legal tender.

Earlier this year, Utah became the first state in the country to legalize gold and silver coins as currency. But because the law doesn't require businesses to accept the metals, most government agencies and private merchants have not embraced the alternative method.

Some businesses have accepted silver from Bowen, he said, and he has made charitable donations with the coins, but he wants the state to follow its own law.

This AP story was posted in The Washington Examiner on Saturday...and I thank West Virginia reader Elliot Simon for sending it along.  The link is here.

Read more...

It’s Time to Think in Terms of Gold

I knew that all of yesterday's edition of Casey's Daily Dispatch was worth reading long before I finished reading what BIG GOLD editor Jeff Clark had to say.  Co-staring in yesterday's column was International Speculator editor...and resident CR geologist...Louis James.

This is an absolute must read from top to bottom...and the link is here.

Read more...

Having trouble getting gold, buyers approach AngloGold Ashanti directly

AngloGold Ashanti CEO Mark Cutifani told Takoa Da Silva of the Bull Market Thinking Internet site that big buyers of gold are having trouble getting the volumes they want and so are approaching the mining company to try to get metal directly. Apparently bullion bank deposit receipts don't have the respect they once did.

The link to this story is imbedded in a GATA release...and the link to that is here.

Read more...

Japan Offers Gold Coins to Bond Buyers

Japanese Finance Minister Jun Azumi will be rewarding investors who buy more than 10 million yen ($129,000) in reconstruction bonds with gold in the government’s latest attempt to bolster demand for the debt.

Individual investors who hold the bonds for three years will be eligible for a gold commemorative coin valued at 10,000 yen, the Finance Ministry said in Tokyo today. At 15.6 grams, (0.55 ounces), it would be worth about $948 based on prices for the precious metal. Only a limited number of coins will be issued, the Finance Ministry said in a statement.

You can't make this stuff up!  This short Bloomberg story was filed from Tokyo late on their Monday night...and I thank Australian reader Wesley Legrand for digging it up on our behalf.  The link is here.

Read more...

Silver Ready For Take-Off?

Here's a story that was sent to me by Swiss reader B.G. last night.  It's sort of a combination of Ted Butler's work on silver, combined with Adam Hamilton's graphics...the very best of both worlds.

The thing that I noticed right away is the first chart, which shows the Commercial net short position in silver. The graph [which you can click to enlarge] showed that the Commercial net short position hasn't been this low since the spring of 2003...long before silver started its really big bull run.  I talk about this net short position all the time...and now here's a graph that shows it going back to 1986.

I was also intrigued by the Accumulation/Distribution graph which I'd never seen before...and as the author points out, it's showing brand new highs, even as the price plunged.

Some of the other graphs are pretty heavy going for newbies...but I urge you to spend the time on this essay that it richly deserves.  It's posted over at the safehaven.com website...and the link is here.

Read more...

 

¤ The Funnies

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¤ The Wrap

Yesterday was another prime example of the bullion banks running the gold and silver price show, as it certainly had nothing to do with the U.S dollar...and the news everywhere was just as terrible on Monday as it was on Friday.

The only silver lining to this is that the Commercial net short position in both metals will certainly show more declines when Friday's Commitment of Traders Report is posted on the CFTC's website.

Here's the 6-month chart for silver.  You can see that 'da boyz' are keeping the silver price below its 50-day moving average so that the technical funds don't come back in on the long side, which is what they'll do the moment that silver breaks that moving average with any kind of authority.

(Click on image to enlarge)

I note that 'da boyz' have rolled the gold price over as well...and although the price is still above its 50-day moving average, the trend is down.  The only question is, will they continue beating on gold until it does break through it to the downside?  Here's gold's 6-month chart...

(Click on image to enlarge)

In Far East trading earlier today, gold trended a few dollars lower before 'falling' below the $1,710 spot price...but has since recovered almost back to yesterday's closing price in New York...but is now tracking sideways about four bucks below that number.  I will be watching the rest of today's price action with great interest.

Silver's price path was similar...with the spot low coming shortly before 2:00 p.m. Hong Kong time.  The subsequent rally got sold off the moment it got to 'exuberant'...and that came very shortly after London opened for trading...and it's now down a bit from Monday's New York close..

Gold volume [as of 5:18 a.m. Eastern time] was a bit over 25,000 contracts...and silver's volume numbers are still not available.  This has been going on for about a month now...and it's obvious that this problem is not high on the CME's 'to fix' list.

Today is the cut-off for Friday's COT report...and it will be interesting to watch whether JPMorgan et al take silver and gold prices lower, or let them run a bit.  That's why I'm particularly interested in how Tuesday's price 'action' evolves as the day wears on.

See you tomorrow.