Gold & Silver Daily
"4.1 million ounces of silver would take a very large bite out of what Scotiabank is still short"
 

¤ Yesterday In Gold & Silver

The gold price got sold down about ten bucks during the first hour of trading in Hong Kong and then traded in a tight $10 price range for the remainder of the Thursday trading session.  The two small rally attempts in New York, one at the Comex open and the other during their lunch hour, didn't get far.  The last rally, such as it was, died just minutes before the Comex close.  The highs and lows aren't worth mentioning.

Gold finished the trading day in New York on Thursday at $1,407.20 spot, down $10.60 from Wednesday.  Volume, net of what few rollovers there were, came in around the 143,000 contract mark.

The price pattern in silver had a little more shape to it, but was very similar to gold's.  Silver got sold down two bits in the early going in Far East trading.  The tiny rally that began during the Hong Kong lunch hour got sold down hard.  Then the rally that began late in the morning in London got dealt with a few minutes after the Comex open, and the last rally attempt died at the Comex close.

After that, the silver price got sold back below the $24 spot price mark, and then traded sideways into the 5:15 p.m. electronic close.

Silver finished the day at $23.87 spot, down 52 cents from Wednesday.  Net volume was pretty heavy at 48,000 contracts, with almost all of it in the new front month for silver, which is December.

Both platinum and palladium sold off gently in every market on Planet Earth yesterday.  Here are the charts.

The dollar index closed late on Wednesday afternoon in New York at 81.44.  When trading began in the Far East shortly thereafter on their Thursday morning, the index traded flat until noon in Hong Kong.  Then away it went to the upside for the second day in a row, with the rally topping out at 82.05 around 11:20 a.m. in New York, shortly after London closed for the day.  After that it traded pretty flat into the close.  The index finished Thursday at 82.005, up about 56 basis points.

In the face of a negative day for the metal itself, the gold shares did rather well, and the HUI managed to eke out a small gain, closing the day up 0.80%.

With the exception of one mining company, all the stocks in Nick Laird's Intraday Silver Sentiment Index closed down on the day.  The index closed lower by 0.82%.

(Click on image to enlarge)

The CME's Daily Delivery Report showed that only 9 gold contracts were posted for delivery later today within the Comex-approved depositories and, true to form, JPMorgan stopped 8 of them in its proprietary trading account.  This completes the deliveries in both gold and silver for the August month.

But the big surprise was the first notice day in silver, as 1,661 contracts were posted for delivery next Tuesday.  It wasn't the amount that was a surprise, it was the identity of the big short/issuer, who turned out to be none other than JPMorgan Chase with 985 contracts out of it's in-house [proprietary] trading account.  There was quite a list of short/issuers, each with a decent amount of contracts issued.

The list of long/stoppers was also a bit of a surprise.  As usual for first notice day, there were a couple of dozen of them, but the major ones were Canada's Bank of Nova Scotia with 825, Credit Suisse in its proprietary trading account with 241, and JPMorgan in its client account with 233 contracts.

The link to yesterday's Issuers and Stoppers Report is link here, and is definitely worth a minute or so of your time.

For the second day in a row there were no reported changes in GLD or SLV, and no sales report from the U.S. Mint.

Over at the Comex-approved depository in gold, there was only 514 troy ounces shipped out the door, and none was received.

In silver there was 658,320 troy ounces received, and 260,846 troy ounces shipped out.  The link to that activity is here.

I have a decent number of stories again today, and some of them are quite important, so I hope you have the time to read the ones that interest you.

 

¤ Critical Reads

JPMorgan Bribe Probe Said to Expand in Asia as Spreadsheet Is Found

A probe of JPMorgan Chase & Co.'s hiring practices in China has uncovered red flags across Asia, including an internal spreadsheet that linked appointments to specific deals pursued by the bank, people with knowledge of the matter said.

The Justice Department has joined the Securities and Exchange Commission in examining whether JPMorgan hired people so that their family members in government and elsewhere would steer business to the firm, possibly violating bribery laws, said one of the people, all of whom asked to not be named because the inquiry isn’t public. The bank has opened an internal investigation that has flagged more than 200 hires for review, said two people with knowledge of the examination, results of which JPMorgan is sharing with regulators.

The scrutiny began in Hong Kong and has now expanded to countries across Asia, looking at interns as well as full-time workers, two people said. The employees include influential politicians’ family members who worked in JPMorgan’s investment bank, as well as relatives of asset-management clients, the people said. Wall Street firms have long enlisted people whose pedigree and connections can win business, a practice that doesn’t necessarily violate the law.

This Bloomberg piece was filed on their website very late on Wednesday evening MDT...and I thank reader M.A. for today's first story.

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August U.S. Equity Trading Volume Plunges to Lowest in 16 Years

Earlier we showed one indicator of the U.S. investor's (should they exist anymore) loss of interest in the Federal-Reserve-sponsored equity market - i.e. CNBC ratings at 20-year lows. In the interest of being more fair-and-balanced we present anther perspective... U.S. equity trading volume in August of 2013 is the lowest on average in 16 years... and all-time highs, middle-east war, taper, weak macro, housing un-recovery, German elections, Asian FX crisis will do little to improve that risk-appetite for the retiring boomer army.

This tiny article, with a must see graph embedded, was posted on the Zero Hedge website late Wednesday afternoon...and it's something I found in yesterday's edition of the King Report.
 

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United States’ 2nd-Quarter Growth Is Revised Up to 2.5%, From 1.7%

The nation’s economic output grew at a much faster rate in the second quarter than originally estimated, buoyed by an increase in exports.

Gross domestic product, a broad measure of goods and services produced across the economy, grew in the second quarter at an annualized rate of 2.5 percent in April through June of this year, the Commerce Department reported on Thursday. The government initially estimated G.D.P. at 1.7 percent.

The growth rate is still far lower than what the country needs to recover the ground lost during the recent recession anytime soon. The long-term average growth rate for the economy is more than 3 percent, and the economy needs above-trend growth to make up for sharp losses from the downturn.

The U.S. economy barely has a pulse.  One can only imagine the implosion that would occur if the Fed wasn't running the printing presses white hot.  I'm still of the opinion, as are many others, that the Fed's 'tapering' ain't going to happen.  This article appeared on The New York Times website yesterday...and I thank reader Ken Hurt for sending it.

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'Brilliant' Snowden Digitally Impersonated NSA Officials

Edward Snowden successfully assumed the electronic identities of top NSA officials to access some of the secret National Security Agency documents he leaked, Richard Esposito, Matthew Cole and Robert Windrem of NBC News report.

Every day, they are learning how brilliant [Snowden] was,” a former U.S. official with knowledge of the case told NBC. “This is why you don’t hire brilliant people for jobs like this. You hire smart people. Brilliant people get you in trouble.

The 30-year-old's role as a "system administrator" meant that he was able to access NSAnet, the agency’s intranet, using those user profiles and without leaving any signature. 

Wow!  If you're getting a little jaded with all the Snowden stories you've read, this one is truly amazing.  Someone is going to make a movie out out of this some day, and when they do, I'll be happy to pay good money to see it.  This businessinsider.com story was posted on their Internet site yesterday morning...and I thank Roy Stephens for his first offering in today's column.

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Cameron backs down on urgent Syria strikes

David Cameron backed down and agreed to delay a military attack on Syria following a growing revolt over the UK's rushed response to the crisis on Wednesday night.

The Prime Minister has now said he will wait for a report by United Nations weapons inspectors before seeking the approval of MPs for “direct British involvement” in the Syrian intervention.

Downing Street said the decision to wait for the UN was based on the “deep concerns” the country still harbours over the Iraq War.

MPs had been recalled to vote on a motion on Thursday expected to sanction military action. Instead, after a Labour intervention, they will debate a broader motion calling for a “humanitarian response”.

This very worthwhile story was posted on the telegraph.co.uk Internet site late on Wednesday evening BST.  Roy Stephens sent me this news item early yesterday morning.

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U.S. Finally Admits What Ron Paul Said: "Nobody Knows Who Set Off The Gas"

The AP reports that US intelligence officials are admitting that linking Syrian President Bashar Assad or his inner circle to an alleged chemical weapons attack is no "slam dunk," as opposed to Obama (and Kerry) who are 'unequivocal' of the fact.

"The intelligence linking Syrian President Bashar Assad or his inner circle to an alleged chemical weapons attack is no "slam dunk," with questions remaining about who actually controls some of Syria's chemical weapons stores and doubts about whether Assad himself ordered the strike, U.S. intelligence officials say." - AP

"The danger of escalation with Russia is very high," Ron Paul warns in this brief Fox News interview. After casting doubts on the government's 'knowledge' and reasoning in the region, Paul gets straight to the point. Simply put, he notes, despite the ongoing headlines of 'proof' and 'dreadful videos', Paul states "We're not positive who set off the gas," and indeed - who is set to benefit most from any Assad-regime-smackdown? Al-Qaeda.

"Assad is not an idiot," Paul adds, "it's unlikely he would do this on purpose...look how many lies were told to us about Saddam Hussein prior to that build-up." A lot of uncomfortable truths in this brief clip for an administration that has crossed its own red line on actions against Syria now..."I think it's a false flag..." Paul adds, there is a big risk that "we are getting sucked in" and the American people are against this war.

This must read commentary was posted on the zerohedge.com Internet site during the noon hour on the east coast yesterday...and it's another offering from reader M.A.

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Britain’s Rejection of Syrian Response Reflects Fear of Rushing to Act

The stunning parliamentary defeat on Thursday for Prime Minister David Cameron that led him to rule out British military participation in any strike on Syria reflected British fears of rushing to act against Damascus without certain evidence.

By just 13 votes, British lawmakers rejected a motion urging an international response to a chemical weapons strike for which the United States has blamed the forces of the Syrian president, Bashar al-Assad.

The vote, and Mr. Cameron’s pledge to honor it, is a blow to President Obama. Like nearly all presidents since the Vietnam War, he has relied on Britain to be shoulder-to-shoulder with Washington in any serious military or security engagement.

This must read story was posted on The New York Times website late yesterday...and it's another offering from Roy Stephens.

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U.S. ready to decide on military action in Syria 'on our own' - White House

President Obama could well consider a military strike in Syria despite the British Parliament rejecting a motion authorizing the UK’s involvement in the conflict.

White House officials told reporters Thursday that the statement from United States’ closest ally, reluctance from the United Nations Security Council, and widespread uncertainty in the US Congress would not be enough to sway Obama from a limited missile strike on Syrian targets. Obama, who has been criticized for not consulting with Congress over Syria, met with lawmakers and other top leaders in a White House conference call Thursday.

We have seen the result of the Parliament vote in the UK tonight. The US will continue to consult with the UK government - one of our closest allies and friends. As we've said, President Obama's decision-making will be guided by what is in the best interests of the United States,” said a White House statement following the meeting. “He believes that there are core interests at stake for the United States and that countries who violate international norms regarding chemical weapons need to be held accountable.”

This must read commentary was posted on the Russia Today website shortly after midnight Moscow time...and my thanks go out to Roy Stephens for bringing this story to our attention.

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Worldwide loss of oil supply heightens Syria attack risk

Libya's oil output has crashed to a near standstill over the past year as warlords and strikes paralyse the country, tightening the screws on global crude supply as the crisis in Syria comes to a head.

“We are currently witnessing the collapse of state in Libya, and the country is getting closer to local wars for oil revenues,” said the Swiss-based group Petromatrix.

The country’s oil ministry said production has slumped to an average of 300,000 barrels per day (b/d) in August, down by more than four-fifths from its peak after the overthrow of the Gaddafi regime two years ago.

“Militia groups are behaving like terrorists, using control over oil as political leverage to extract concessions,” said Dr Elizabeth Stephens, head of political risk at insurers Jardine Lloyd Thompson. Port closures and strikes have compounded the damage but the deeper story is the disintegration of political authority.

This news item was posted on The Telegraphs' website yesterday evening BST...and I thank Manitoba reader Ulrike Marx for her first story in today's column.  It's definitely a must read as well.

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U.S. Banker Deploys Polygraph to Thwart Kazakhstan Theft

When Michael Eggleton arrived in Kazakhstan in 2009 after three banks defaulted on about $20 billion in debt, he thought something drastic had to be done.

So the former Merrill Lynch & Co. and Credit Suisse Group AG banker, who had been appointed chief executive officer of Almaty-based Eurasian Bank JSC, flew a polygraph machine into the Central Asian country to bolster client trust.

The bank, Kazakhstan’s 10th largest, was losing money, and Eggleton’s predecessor, Zhomart Yertayev, had been arrested on suspicion of embezzlement in connection with $1.1 billion in losses at Alliance Bank, which he led from 2002 to 2007. Yertayev, who denied wrongdoing, was convicted in 2011.

Why just Kazakhstan?  A couple of dozen of these should be required on both Wall Street and in Washington.  They'll also need a machine permanently  installed at JPMorgan Chase as well.  This Bloomberg story was posted on their website on Wednesday afternoon MDT...and I thank U.A.E. reader Laurent-Patrick Gally for bringing it to our attention.

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A Finicky Thief of the Finest Silver Is Arrested Again

Even before someone carefully removed a windowpane from a secluded Buckhead home here one rainy June night and slipped away with a 1734 silver mug that had belonged to George II, it was clear to detectives that a meticulous thief with a singular obsession was stealing the great silver pieces of the Old South.
 

For months, exquisite sterling silver collections had been disappearing, taken in the dead of night from historic homes in Charleston, S.C., and the wealthy enclaves of Belle Meade, Tenn. Nothing else was touched.

The police in different states did not at first connect the thefts, some of which initially went unnoticed even by the owners. But as the burglaries piled up, a retired New Jersey detective watching reports on the Internet recognized a familiar pattern.

Reader Phil Barlett sent me this fascinating 2-page story a couple of days ago, but because The New York Times website was being hacked at the time, the link wouldn't work.  But they're back up and here's it is.

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Marc Faber on Gold & Debt

HardAssetsInvestor: What are your views on the stock market?

Marc Faber: Following the huge increase in stock prices we had since March 2009, when the S&P was at 666, a 20% correction would not surprise me at all. I don't look at the 20% correction as a huge decline in stock prices. In Asia, we've had corrections in the order of 20% in many markets. We had a huge decline in bond prices in the US.

In July 2012, yields on the 10-year bond were at 1.43%; we're now close to 2.9%. Yields have doubled. The longs have been hit quite hard. I don't regard a 20% correction in stocks as a huge bear market.

HAI: So no more than 20 per cent?

Marc Faber: We have to assess stocks when we are there. We don't know to what extent the Fed will continue bond purchases, increase bond purchases or even buy stocks. We're dealing with markets today that are basically manipulated by the Federal Reserve and other central banks. That's why any forecast is very tentative.

Did you read that?  Marc says that "we're dealing with markets today that are basically manipulated by the Federal Reserve and other central banks." I know it's hard to believe, dear reader, but there are still those out there that believe the gold and silver markets are free and fair in the face of all the evidence that indicates that it isn't.  This interview was posted on the bullionvault.com Internet site Wednesday evening BST...and it's courtesy of reader Ken Hurt.

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Michael Kosares: A new contagion is brewing

Gold could see new mega-highs according to two prominent international bank economists.

While all eyes have been on Syria, what might turn to be a much more insidious problem for the world economy has been bubbling below the surface – and for the most part out of the public eye – in what we used to call the “third world.” In the end, what amounts to a new currency and debt debacle in the emerging world could undermine the world’s stock markets, including Wall Street, the value of those country’s currencies as well as the debt denominated in those currencies. The list includes China, India, Brazil, Argentina, Indonesia, South Africa, Russia and Mexico – just to name a few (and we won’t even get into the problems in the southern rim of Europe). Some see the developing situation as a repeat of the 1996-1997 Asian contagion, but it goes beyond the Pacific Rim, as just noted, to include most of the southern hemisphere.

Kevin Lai, who is chief regional economist at Daiwa Securities stated in a recent Financial Times article that “all this QE money has led to a massive credit inflation bubble in Asia. The crime has been committed, we just have the aftermath. During that process, there will be a lot of damage. . .It’s like a margin call. Households will need to sell their assets. There will be a lot of wealth destruction.” Later in the article he adds to those concerns. “The choice is either you protect your currency or you protect domestic growth. You can do only one or the other. There is no easy way out.” The former will lead to inflation; the latter to disinflation or stagflation – whichever term fits your fancy.

This short commentary by Michael was posted yesterday on his website usagold.com.

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U.S. Gold Mine Output Rises 5% Month-on-Month In May – USGS

U.S. gold mine output was 18,000 kilograms in May, the U.S. Geological Survey said Thursday.

May output was 5% above the revised April production of 17,100 kilograms. May output was down 5% from year-ago production of 18,900 kilograms.

The average daily production rate in May was 582 kgs of gold, USGS said. This compares to April’s average daily rate of 570 kgs, the May 2012 average daily rate of 609 kgs, and the 2012 average of 639 kgs.

If you read between the lines, the take-away from this very brief Kitco story is that gold production in the U.S has declined in 2013 compared to 2012.  It's another offering in today's column from reader M.A.

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Sprott Money: Ask the Expert With Ted Butler

The good folks over at Sprott Money will be interviewing Ted sometime in September...and they're asking anyone with a question to e-mail it to them, so he can answer it when the time comes.  You can read all about it in this dispatch they sent out yesterday.

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NewPlat becomes world's largest platinum ETF

New Gold Platinum, the physically backed South African platinum exchange-traded fund operated by Absa Capital, has become the largest fund of its type in volume terms just four months after its launch, Absa said on Thursday.

Holdings of the rand-denominated NewPlat ETF, as the fund is known, increased by nearly 12,000 ounces on Thursday to 579,198 ounces, Absa's head of investments Vladimir Nedeljkovic said.

That puts its platinum reserves above those of the next largest platinum exchange-traded product, New York's ETFS Physical Platinum, which holds 572,409 ounces of metal.

I'd love to know who the ten largest shareholders of this fund are, as you have to wonder why this fund has become so popular so quickly.  This Reuters story was posted on the mineweb.com Internet site yesterday...and it's definitely worth reading.  I thank reader M.A. for another contribution to today's column.

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South African gold companies plan to lock out employees - Solidarity

South African gold companies plan to lock out employees after labor groups refused to accept a revised pay offer, according to the Solidarity union.

Labor unions were to meet over incentives with the Chamber of Mines, representing producers including AngloGold Ashanti Ltd., when the discussion was canceled and a lockout declared, General Secretary Gideon du Plessis said by mobile phone.

“It is clear that the chamber was following the lockout route, which could lead to a brutal strike by aggrieved miners of other unions,” Solidarity said in an e-mailed statement. “The chamber will probably make the announcement at a press conference this afternoon.”

This Bloomberg story found a home on the mineweb.com Internet site yesterday as well...and it's courtesy of Ulrike Marx.

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State ‘will not intervene in South African gold strike talks’

The South African government will not intervene in deadlocked wage talks between gold producers and unions even as some producers prepare for work stoppages of up to three months, the South African mines minister said on Thursday.

The National Union of Mineworkers (NUM) has said it will give producers on Friday 48-hours' notice of its members' intention to strike over the wage talks.

“The government will not intervene,” Susan Shabangu told Reuters on the sidelines of a mining industry conference in Perth, Australia.

“There's nothing new in parties being miles apart. Our concern as government is that they need to settle and find common ground.”

This article was posted on the iol.co.za Internet site early yesterday afternoon local time...and I thank reader M.A. for digging it up for us.

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India might buy gold from citizens to ease rupee crisis

India is considering a radical plan to direct commercial banks to buy gold from ordinary citizens and divert it to precious metal refiners in an attempt to curb imports and take some heat off the plunging currency.

A pilot project will be launched soon, a source familiar with the Reserve Bank of India (RBI) plans told Reuters. India has the world's third-largest current account deficit, which is approaching nearly $90 billion, driven in a large part by appetite for gold imports in the world's biggest consumer of the metal.

With 31,000 tonnes of commercially available gold in the country - worth $1.4 trillion at current prices - diverting even a fraction of that to refiners would sate domestic demand for the metal. India imported 860 tonnes of gold in 2012.

This Reuters article, filed from Mumbai, was posted on their website early yesterday morning EDT...and I found it in a GATA release.  It's worth the read.

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As prices soar in India, gold exchanged for cash

As gold prices rocketed to a record high of Rs 34,000 per 10 gram, Hyderabadis flocked to jewellery stores to dispose of their gold valuables, while in Seemandhra cities, traders said weeks of protests have made the existence of their badly-hit businesses doubtful.

Jewellery associations in Hyderabad said with the single day surge of Rs 2,500, customers were coming in droves from early morning to take back cash in exchange for their gold jewellery.

"If the customers have bought jewellery from here, we have no option but exchange it for cash if they want to," said G Sampath Reddy, manager, J C Brother Jewellery store in Dilsukhnagar.

This gold-related news item, filed from Hyderabad, was posted on the Times of India website in the wee hours of Thursday morning IST...and I thank Ulrike Marx for her final offering in today's column.

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John Embry: Gold market in for a wonderful Fall

“I suspect we are in for a wonderful Fall,” John Embry, Sprott Asset Management's chief investment strategist, told Mineweb’s Gold Weekly Podcast, primarily because the yellow metal is currently very under-priced and the Indian market has been taking note.

“At this point I am probably  as bullish as I’ve been in living memory actually,” Embry said, “adding “I thought this summer might be a little slow because it’s a quiet market and you can play around in the paper market, but I think that’s going to change quite significantly in the fall and I would not be surprised if, by early next year, we weren’t challenging all-time high.”

While recent activity in India is clearly indicative of continued high demand, the government is intent on trying to curb imports. Asked his view of the recent interventions made by the Indian government, Embry explains that, India is under the hegemony of the US, which is currently very anti-gold. But, he adds, he doesn’t think the measures being adopted will work because “Indians almost have gold in their DNA and when you try and stop them from getting it…I am told the smuggling has been extreme.”

This commentary, plus the embedded podcast, was posted on the mineweb.com Internet site yesterday...and I thank reader M.A. for his final contribution of the day.

Read more...

 

¤ The Funnies

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¤ The Wrap

I remember writing over the past year or two about the discovery of a silver cache in a ship sunk in World War II by a German U-boat. The SS Gairsoppa was discovered in 2011 and salvage efforts have been underway since. It made the news a month or so ago, as silver bars were raised to the surface amid the glare of TV cameras.In a little-noticed story and buried at the end, the recovery efforts were recently not extended due to concerns that the price of silver was too low. Hey, it’s one thing when the price goes below the cost of production, but you know silver is really cheap when it goes below the cost of recovery as sunken treasure. - Silver analyst Ted Butler, 28 August 2013

I wouldn't read much into yesterday's price action in either metal, except for what I noted at the top of this column, that the two rallies of any substance yesterday both got dealt with in the usual manner during the Comex trading session.

But the big surprise yesterday, at least for me, was the fact that JPMorgan Chase ended up as the largest of the short/issuers in silver on First Day Notice, and even more surprising was the fact that Canada's Bank of Nova Scotia was the biggest long/stopper.

It's always been my opinion that, along with JPMorgan Chase, Canada's Scotiabank/Scotia Mocatta was the number two player on the short side in both gold and silver, and that this delivery of a bit more than 4.1 million ounces of silver would take a very large bite out of what Scotiabank is still short.

As the CFTC pointed out on their website late last year, "The October 2012 Bank Participation Report includes COMEX gold and COMEX silver futures and options positions for a newly classified non-U.S. bank, based upon the entity’s self-description on its latest CFTC Form 40. Given the methodology of the Bank Participation Report, the entity’s most recent Form 40 submission results in all of its futures and options positions now being included within the report."  That notification is still posted on the CFTC's website here, so you can read it for yourself if you doubt me.  Ted Butler mentioned the possibility that it might be Scotiabank, and almost instantly I was 100 percent convinced that it was, as the fit was perfect.

Shortly after that, I got into a long e-mail discussion with someone from Scotiabank's head office, and he would neither confirm nor deny it.  The entire thread was posted in this space late last year as it developed.

Here are the current Bank Participation Reports for both silver and gold .  Chart #4 on each is most applicable, and you'll need to use the 'Click to Enlarge' feature to bring them up to full screen size.  Please note how the non-U.S. bank category in both metals blew out in October 2012.  Those were the Comex futures positions of the bank that the CFTC was referring to.  It only lacked a name, and I was happy to provide it.

(Click on image to enlarge)

(Click on image to enlarge)

If anyone at Scotiabank or Scotia Mocatta reads this and can prove I'm wrong with some hard facts and figures, mainly the last five years of the CFTC Form 40, I'll be happy to print a retraction.  They've had that opportunity on many occasions since last October, but I haven't heard a peep from them.

The other news event that I find interesting is the fact that the White House may go it alone in Syria.  If they do, in fact, do that, it wouldn't surprise me in the slightest if that event, or the blowback from it, is what launches the precious metal prices to the moon.  As I've said on many occasions, when the precious metals are finally allowed to go ballistic, it will be hidden behind the skirts of a major world event.  It could have been economic, financial or monetary up until this point, and still could be, however military adventurism was never an option I considered until now.  I was always wary that another 9/11 event would be sprung on us by the powers that be.  As Ron Paul so correctly stated, you have to be on the look-our for obvious false-flag events.

We'll see what happens going forward.

Today, at 3:30 p.m. EDT, we get the latest Commitment of Traders Report for positions held at the close of Comex trading on Tuesday.  I'm not really sure what to expect, but I'm prepared for the worst, while hoping for the best.  Whatever the numbers turn out to be, I'll have them for you in tomorrow's missive.

Both gold and silver were sold down a bit in Far East trading on their Friday, and as you've already noted the moment that London opened, both these metals got sold down even more.  Volumes are pretty heavy for this time of day, especially in silver.  The dollar index is flat, hovering just below the 82 mark.  And as I hit the send button on today's column at 5:17 a.m. EDT, gold is down about eleven bucks, and silver is down about 20 cents.

That's more than enough 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.

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