Gold & Silver Daily
"There's no doubt that every mining executive out there knows what the true situation is."

¤ Yesterday In Gold & Silver

The gold price did precisely nothing for most of the day in Far East trading on their Friday, and the tiny rally that did develop heading into the London open got turned aside easily.  The low tick of the day came at the 10:30 a.m. BST morning gold fix, andand from there it rallied back to unchanged by the noon London silver fix.

Then away it went to the upside, and the price was up about twenty-three bucks by the time Comex trading began at 8:20 a.m. in New York.  The usual seller of last resort put in an appearance at that point, and drove the price down to its N.Y. low by the time the equity markets opened at 9:30 a.m. EDT.  The subsequent rally got cut off at the knees after the London p.m. gold "fix" was in, and except for a brief rally in the electronic market in mid-afternoon, the gold price didn't do much for the remainder of the New York trading session.

Gold closed at $1,336.20 spot, up $12.40 from Thursday.  Net volume wasn't overly heavy at 140,000 contracts.

Silver got sold down a bit in morning trading in Hong Kong, and then traded flat in a very choppy manner until its spike low of the day, which came shortly after 10 a.m. in London.  After that it was up, up, and away with hardly a pause until the Comex open.  Then the not-for-profit seller[s] showed up, and the rest as they say, is history.  The silver price was back below $22 spot in no time flat once again.

The low in London was around $21.40 spot, and Kitco recorded the high at the Comex open as $22.25 spot, which is an intraday move of 85 cents, over 3 percent.

Silver finished the New York session at $21.78 spot, up 5.5 cents from Thursday, which was 47 cents off its high.  Net volume was pretty light at around 36,000 contracts.

The platinum price appeared to have been held in check as well.  Every little rally, no matter how tiny, just got nowhere.  Palladium's price fireworks came shortly after the London p.m. gold fix at 10 a.m. in New York, and it was fairly obvious that a not-for-profit seller was lurking about to knock the price back going into the Comex close.  Here are the charts, and you can decide for yourself.

The dollar index closed at 80.53 in New York on Thursday afternoon, and hit its "high" of the Friday session [80.59] during the first couple of hours of trading in the Far East.  It wandered lower from there up until 11 a.m. in London, and from there the down trend accelerated, hitting its low tick of 80.12 at the London p.m. gold fix.

At that moment there was obviously someone standing by to catch the proverbial falling knife before the index collapsed below the 80.00 mark, the second time that has happened in the last ten days.  The time before was on September 18 on the FOMC news.  The index closed at 80.26, which was down 27 basis points from Thursday.

The gold stocks opened on their highs and began to slide immediately, with the low coming shortly after 1 p.m. EDT. From there the stocks moved back into positive territory on the smallish gold price rally in electronic trading I spoke of earlier, but then rolled over immediately once the price got knocked back down again.  The HUI finished down 0.18%.

The silver stocks suffered precisely the same fate, and Nick Laird's Intraday Silver Sentiment Index closed down 0.24%.

I forgot all about the fact that Monday is First Day Notice for the October delivery month, so when I checked the CME's website, I got a big surprise.  There were 2,008 gold; 1,000 platinum and 3 silver contracts posted for delivery on Tuesday.

In gold, the surprise short/issuer was JPMorgan Chase with 1,000 contracts out of its client account and 962 contracts from its in-house [proprietary] trading account.  Not surprisingly, HSBC USA was the largest long/stopper with 1,478 contracts.  Barclays and JPM [for its client account] were a distant second and third with 192 and 172 contracts respectively.  There were about a dozen long/stoppers in total, but as is always the case, it's "da boyz" that are involved with the lion's share of the deliveries.

The only short/issuer in platinum was Barclays out of their client account; and they, along with JPM and HSBC USA were the biggest long/stoppers, and both for their proprietary trading accounts.

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

I was surprised to see that an authorized participant made a withdrawal from GLD yesterday.  This time it was 115,854 troy ounces.  There were no reported changes in SLV.

There was a tiny sales "report" from the U.S. Mint yesterday.  They sold another 1,000 one-ounce 24K gold buffaloes.  And they also revised their silver eagles sales downwards by about 35,000 or so.  The revised total silver eagle sales for September now stand at 2,525,000.

Based on the sales figures for September so far; 13,000 ounces of gold eagles, and 10,000 one-ounce 24K gold buffaloes; the silver/gold ratio is sitting at 109 to 1.  Since the last day of the reporting month falls on Monday, the mint should have one more sales report for September, and I'll report on that in my Tuesday column.

There were no reported in/out movements for gold within the Comex-approved depositories on Thursday.  But, like Wednesday, it was a totally different story in silver, as 800,380 troy ounces were reported received by Brink's, Inc., and 32,147 troy ounces were shipped out.  The link to that action is here.

The Commitment of Traders Report for positions held at the close of trading on Tuesday showed a decrease in the Commercial net short position in silver, along with a slight increase in gold's.

In silver, the Commercial net short position declined by 13.2 million troy ounces, and is down to 98.1 million troy ounces.  Ted Butlers says that it was mostly the small commercials [the raptors]  increasing their long positions that accounted for the change.  The Big 4 shorts [read JPMorgan] covered about 500 contracts, and Ted says that puts JPM's short position just under the 70 million troy ounce mark.  That's amazing when you think about it.  JPM is short 70 million ounces of the total Commercial net short position of 98.1 million ounces.   The four biggest short holders in silver are short 182 million troy ounces between them, with JPM holding almost half of that amount all by itself.  In percentage terms, Ted says that JPMorgan's short position is now down to 14.9% of the entire futures market in silver on a net basis.

But as you found out on Wednesday, the CFTC says that this situation doesn't exist, even though their own report shows that to be the case, and it's the same, except worse in gold.

In gold, the Commercial net short position increased by 619,000 troy ounces, which now sits at 7.15 million ounces.  Ted says that the Big 4 traders on the short side increased their short position by 430,000 ounces.  Ted puts JPMorgan's long position in gold at 6.4 million ounces, which represents 20.3% of the entire futures market on a net basis.

Here's a chart from Nick that I haven't posted in many months.  It's the "Days of World Production to Cover Short Positions" of all the commodities traded on the Comex.  The only thing that has changed much is that the days of world production of palladium has now overtaken silver in the #1 position for the first time.  Of the sixteen physical commodities show in this chart, the four precious metals hold four of the five top spots, andand it's been that way for years.  Only recently has gold fallen below cocoa, and that's because JPMorgan is no longer short gold.  They are long the gold market now.

I got an e-mail last night that was rather interesting.  It's an open letter and petition to the CFTC's Bart Chilton to resign and become a whistleblower.  There's no question that Bart knows where all the bodies are buried, and could read us chapter and verse on what's really going on in the precious metal markets.  I certainly got the impression that he wanted to tell all on this, but Gensler told him to button it.  You can read all about it here, and signing it won't do any harm, as the World Gold Council, The Silver Institute and the mining companies aren't interested in helping.  Now it's up to us to help ourselves.  How did it come to this?

Despite the fact that it's a Saturday column, I don't have all that many stories for you today, and a few of them I've been saving all week.


¤ Critical Reads

Special Report: Pimco shook hands with the Fed - and made a killing

The giant fund-management firm, led by co-founder Bill Gross, started buying tens of billions of dollars in mortgage-backed securities guaranteed by federally sponsored agencies like Fannie Mae and Freddie Mac. In the third quarter of 2011 alone, Pimco's flagship Total Return Fund, the world's largest mutual fund, doubled its holdings of these securities to $80 billion, according to a Reuters review of trading and other data.

While Pimco was building its hoard, the Fed, in a surprise move long before any word on quantitative easing, said it would start buying more of the same kind of debt, known in the trade as "agency MBS." The U.S. central bank would acquire as much as $30 billion of the securities a month by reinvesting proceeds from its earlier purchases. Prices rose.

Pimco's mortgage plays in 2009 and 2012 - when Fed buying was heavy - handed the firm and investors in the Total Return Fund a gain of $10 billion, excluding net investment flows, according to Reuters estimates.

There is no evidence of illegality or impropriety in Pimco's actions. Pimco says that it kept its employees who were helping the Fed at arm's length from those investing for its funds, and that its bond-buying bet was conceived before the Fed's program was begun. The Fed says it implemented and enforced strict controls over the trading done by the firms.

But Pimco's ability to enrich its returns by following the Fed does illustrate how the Fed's easy-money policy over the past five years has produced outsized winners. As one of them, Pimco benefited enormously from the very Fed policies that it was helping to implement.

Bill is an insider, and there's no way that he could have anticipated this move by the Fed unless he was in on it, despite his pleas to the contrary.  This Reuters story from yesterday morning is certainly worth reading...and today's first news item is courtesy of West Virginia reader Elliot Simon.


Peter Schiff: Treasurys Are 'Junk Bonds'; Debt Ceiling Shouldn't Be Raised

The nation's finances are in such tatters that Treasurys are really "junk bonds," says Peter Schiff, CEO of Euro Pacific Capital.

And the debt ceiling shouldn't be raised because it just perpetuates our problems, he tells Yahoo.

"There's no way we can pay any of this money back," Schiff explains. "We're either going to default or inflate. Either way bondholders are going to lose, so don’t buy any Treasurys."

This short on-the-money commentary by Peter was posted on the Internet site early yesterday morning EDT...and I thank Elliot Simon for his second offering in a row.


Jeff Gundlach says taper will wait till next Fed chair

Gundlach also hinted that he expects the next chairman will be Janet Yellen, saying it would be unlikely for Ben Bernanke to move to begin to taper before the next chairman “he or she — probably she” is in place.

Gundlach noted that dividend paying stocks have stalled in their gains lately, saying the market’s been helped lately by high-performance stocks like Tesla Motors, Netflix and Facebook.

He also said the Fed’s massive purchases of government debt could have wildly unexpected consequences in the event of another banking crisis because it’s reduced “the supply of high-quality collateral.”

"High-quality collateral?"  Really.  It's scary to hear people like that say this sort of thing.  This item was posted on their website on Thursday afternoon EDT...and it's courtesy of reader Ken Hurt.


Matt Taibbi: Looting the Pension Funds

All across America, Wall Street is grabbing money meant for public workers.

In the final months of 2011, almost two years before the city of Detroit would shock America by declaring bankruptcy in the face of what it claimed were insurmountable pension costs, the state of Rhode Island took bold action to avert what it called its own looming pension crisis. Led by its newly elected treasurer, Gina Raimondo – an ostentatiously ambitious 42-year-old Rhodes scholar and former venture capitalist – the state declared war on public pensions, ramming through an ingenious new law slashing benefits of state employees with a speed and ferocity seldom before seen by any local government.

Called the Rhode Island Retirement Security Act of 2011, her plan would later be hailed as the most comprehensive pension reform ever implemented. The rap was so convincing at first that the overwhelmed local burghers of her little petri-dish state didn't even know how to react. "She's Yale, Harvard, Oxford – she worked on Wall Street," says Paul Doughty, the current president of the Providence firefighters union. "Nobody wanted to be the first to raise his hand and admit he didn't know what the fuck she was talking about."

This very disturbing 5-page essay by Matt was posted on the Rolling Stone website on Thursday, and for length and content reasons, had to wait for today's column.  As you have probably already noted, the column comes with an "R" rating for "pithy prose".  The first reader through the door with this, was Roy Stephens.


Doug Noland: Z1 and the Doves

An economy on firm footing would be one demonstrating at least a reasonable balance within the real and financial sectors. One would hope to see sound money and productive Credit financing capital investments throughout the economy - liquidity/spending power entering the system primarily in the process of financing economic wealth creation in the real economy (as opposed to financing consumption and asset speculation).

We instead these days see an unprecedented government injection of liquidity directly into securities markets, with resulting asset inflation and myriad distortions. In the real economy, massive federal deficits and ultra-low interest-rates have inflated incomes, corporate cash flows and earnings. Inflating asset markets and Household Net Worth drive sufficient consumption to sustain a deeply imbalanced economic structure.

Not unpredictably, after about five years of unmatched debt monetization and liquidity injections, the Federal Reserve today struggles with even the most timid reduction of monetary inflation. Perhaps Fed officials appreciate the dependency the U.S. and global economies have developed to speculative and inflating securities markets, along with the dependency inflated markets have to ongoing Fed and central bank liquidity injections.

Doug's weekly Credit Bubble Bulletin is always on my must read list for the weekend.  I thank reader U.D. for sending me this week's edition.


Britain accused of trying to impede E.U. data protection law

Britain has been accused of trying to impede data protection reforms that would make it more difficult for spy agencies to get hold of material online.

The European parliament is planning to vote on a new, unified law for EU member states in the next few weeks, but activists fear Britain is deliberately obstructing the path to new legislation.

Speaking at an international conference on data protection in Warsaw on Thursday, the UK information commissioner, Christopher Graham, said the first draft of the proposed regulation was "too dirigiste". Britain was "not interested in regulation that is a to-do list".

This article appeared on the Internet site on Friday evening BST...and my thanks go out to Roy Stephens once again.


ECB hires controversial consultancy for bank audit

The European Central Bank (ECB) on Tuesday (24 September) said it hired Oliver Wyman, a US-based financial consultancy, to help out with a thorough audit of the 130 largest banks in the eurozone.

Oliver Wyman is a known name in the world of eurozone bailouts and bank "stress tests."

Back in 2006, it famously said the Anglo Irish Bank was the best bank in the world. Three years later, the bank had to be nationalised and almost bankrupted the Irish state, which then needed a eurozone bailout.

Last year in the Spanish bank bailout, Oliver Wyman provided eurozone decision-makers with the numbers they expected and which were politically acceptable - around €60 billion instead of a much larger gap that the banks actually had.

In other words, this clown will provide whatever numbers are required, and it's already obvious that they will be far removed from the truth, based on his prior calls.  This story, filed from Berlin, was posted on the Internet site on Wednesday morning Europe time...and it's another contribution from Roy Stephens.


Italian GDP Slumps Fastest Since 1861's Unification

Italy’s Stability Program targets a 5%-6% primary budget surplus, and 3% nominal GDP growth. Both strike JPMorgan's Michael Cembalest as unrealistic in the context of post-crisis Italy. Italy ran a 6% surplus for a brief moment in the 1990’s but it didn’t last, as it was the result of a prior devaluation helping growth, some asset sales and some tax increases. Only asset sales seem feasible in Italy right now, if anything.

If Cembalest's concerns are correct, Italy will remain a country with almost twice the debt/GDP ratio as the US; unbreakable interdependency of the government, the banks, and the ECB; and low GDP and employment growth. If history is any guide, he will be right as the last few years have seen the biggest collapse in Italian GDP since The Unification in 1861...

You've already read all the text from this tiny Zero Hedge piece from yesterday, but the embedded graph is worth checking out as well.  This news item is courtesy of U.A.E. reader Laurent-Patrick Gally.


Italian PM to call confidence vote as government nears collapse

Italian Prime Minister Enrico Letta will call a confidence vote in parliament after a showdown with centre-right partners in his fragile coalition scuppered a vital package of budget measures on Friday and took his government to the brink of collapse.

Letta flew back from a visit to New York with coalition unity already in tatters after a threat by centre-right lawmakers to walk out over former premier Silvio Berlusconi's battle against a conviction for tax fraud.

Letta's left-right coalition has flirted with collapse ever since Italy's top court convicted former premier Berlusconi of tax fraud last month and sentenced him to four years in prison, commuted to a year of house arrest or community service.

On Wednesday, PDL lawmakers said they would resign en masse if a Senate committee meeting on October 4 votes to begin proceedings to expel their leader from parliament, under legislation that bars convicted criminals.

Another failed government for Italy?  I think Italy has had over fifty different governments since the end of WW2, and this will add another one to the list.  This news item, filed from Rome, was posted on the Reuters website just before lunch EDT yesterday...and it's the second contribution in a row from Laurent-Patrick Gally.


Jihad Tourists: How Dangerous Are Syria's Foreign Fighters?

Once just a small group, now there are several thousand foreign jihadist fighters present in Syria today. Though some rebel leaders say their presence does pose a danger, the impact of these groups is often exaggerated by the Western media.

The role of foreign jihadists linked to al-Qaida in Syria has been the subject of intense discussion in the Western media, among think tanks and inside governments. Yet despite the attention paid to the issue, the research behind the reports published is often thin.

There's a good reason for this, too: Very few foreign journalists are still traveling within the areas of Syria that are no longer controlled by the regime of dictator Bashar Assad. Of course, other factors also influence the reporting. Right from the start, the regime described the insurgency in its propaganda as the action of "foreign terrorists," and it has often used the Russian media in particular as a platform for spreading false accounts of events.

This short essay was posted on the German website very early yesterday evening Europe time...and once again I thank Roy Stephens for sending it.  It's required reading for any student of the New Great Game.


Return of the Lion: Former Warlord Preps for Western Withdrawal from Afghanistan

While the West is trying to extricate itself from the war zone in Afghanistan as quickly as possible, old warlords like Ismail Khan are preparing for a post-withdrawal period that many anticipate will be violent.

"So you believe that the Taliban will return as soon as NATO is gone?"

"The arrogant Americans drove the most important Taliban out of Kabul, bombed the rest from the air and then ended the war," says the minister. "So far, 2013 has been the bloodiest year yet in Afghanistan. The Taliban are in all the villages once again. They want all the power. Our army won't be able to stop them."

"And you could stop them?"

"We have 20 years of combat experience, and we defeated a superpower. We can deal with the Taliban too," says Khan, leaning back in his chair. "But not this army," he adds, waving his hand in the direction of the defense ministry. The Afghan army, trained by the West, has lost 63,000 men, or one in three soldiers, to desertion in the last three years.

Rarely have officials in Afghan government ministries spoken as frankly as they do today, now that the Western troop withdrawals have begun.

This sounds like the stories I was reading when American troops were pulling of out Vietnam about 40 years ago.  This essay from Monday was posted on the website, and because of its content and length, had to wait until today's column.  It's a must read for all serious students of the New Great Game.


Morales: Obama can invade any country for U.S. energy needs

In his dramatic speech in New York, Bolivian President Evo Morales called for the UN to be moved out of the US and for Barack Obama to be tried for crimes against humanity. Speaking to RT, Morales explained his controversial proposals.

In his most controversial demand, Morales said that Obama should face an international trial with human rights watchdogs among the judges. The Bolivian president accused his US counterpart of instigating conflicts in the Middle East to make the region more volatile and to increase the US’s grip on the natural resources it abounds in. He gave Libya as an example of a country where “they arranged for the president to be killed, and they usurped Libya’s oil.”

“Now they are funding the rebels that fight against presidents who don’t support capitalism or imperialism,” Morales told Eva Golinger of RT’s Spanish sister channel, Actualidad. “And where a coup d’état is impossible, they seek to divide the people in order to weaken the nation – a provocation designed to trigger an intervention by peacekeeping forces, NATO, the UN Security Council. But the intervention itself is meant to get hold of oil resources and gain geopolitical control, rather than enforce respect for human rights.”

Morales is absolutely correct, of course...and John Perkins, the author of "Confessions of an Economic Hit Man" would heartily agree.  This Russia Today news item is a must read, especially for students of the New Great Game.  I thank Roy Stephens for sliding this into my in-box in the wee hours of this morning.


Warming Plateau? Climatologists Face Inconvenient Truth

Data shows global temperatures aren't rising the way climate scientists have predicted. Now the Intergovernmental Panel on Climate Change faces a problem: publicize these findings and encourage skeptics -- or hush up the figures.

For a quarter of a century now, environmental activists have been issuing predictions in the vein of the Catholic Church, warning people of the coming greenhouse effect Armageddon. Environmentalists bleakly predict global warming will usher in plagues of biblical dimensions -- perpetual droughts, deluge-like floods and hurricanes of unprecedented force.

The number of people who believe in such a coming apocalypse, however, has considerably decreased. One cause of this shift, presumably, is the fact that global warming seems to be taking a break. The average global temperature hasn't risen in 15 years, a deviation from climatologists' computer-simulated predictions.

This is a difficult state of affairs for the Intergovernmental Panel on Climate Change, which will release its next assessment report on global warming on Friday, Sept. 27.

As I've state to anyone who would listen over the years, this climate change thingy is b.s. through and through.  If you've forgotten how corrupted the whole process became, then watch this video.  I've posted it before.  The video, and the above, story are well worth your time...and I thank Roy Stephens for sending me this essay on Monday.


Global warming believers are feeling the heat

On Friday the Intergovernmental Panel on Climate Change delivers its latest verdict on the state of man-made global warming. Though the details are a secret, one thing is clear: the version of events you will see and hear in much of the media, especially from partis pris organisations like the BBC, will be the opposite of what the IPCC’s Fifth Assessment Report actually says.

Already we have had a taste of the nonsense to come: a pre-announcement to the effect that “climate scientists” are now “95 per cent certain” that humans are to blame for climate change; an evidence-free declaration by the economist who wrote the discredited Stern Report that the computer models cited by the IPCC “substantially underestimate” the scale of the problem; a statement by the panel’s chairman, Dr Rajendra Pachauri, that “the scientific evidence of… climate change has strengthened year after year”.

As an exercise in bravura spin, these claims are up there with Churchill’s attempts to reinvent the British Expeditionary Force’s humiliating retreat from Dunkirk as a victory. In truth, though, the new report offers scant consolation to those many alarmists whose careers depend on talking up the threat. It says not that they are winning the war to persuade the world of the case for catastrophic anthropogenic climate change – but that the battle is all but lost.

Al Gore’s “consensus” is about to be holed below the water-line – and those still aboard the S.S. Global Warming are adjusting their positions.

This is another terrific article on the same subject.  This one was posted on The Telegraph's website on Wednesday and it, too, falls into the must read category...and my thanks go out to reader M.A. for sending it our way.


Three King World News Blogs

1. John Hathaway: "CFTC Stonewalls Hathaway's Request For Information".  2. Gerald Celente: "Blasts the CFTC and Bart Chilton and Previews New Trends".  3. Jim Grant: "The World Will Witness Extreme Monetary Disorder".

[Although I post all of Eric King's interviews, I wish to go on the record as saying that I don't necessarily agree with everything that's said by some of his guests. - Ed]


First settlement in South Africa for ailing mining company employees

British mining conglomerate Anglo American agreed to pay a group of former gold miners in South Africa an undisclosed amount for health problems, a settlement that could open the door to thousands of similar suits against Anglo American and other mining companies.

It is the first settlement reached in South Africa between a mining company and employees who say they contracted respiratory diseases from working in the mines. Lawyers representing the 23 miners said the company and other mining firms should now do "the decent thing" and consider claims submitted by thousands of other workers.

Anglo American South Africa agreed to the confidential settlement in court this week without admitting liability. The settlement comes nearly 10 years after the miners from South Africa and Lesotho launched the claim. Since then eight of the 23 men have died.

This story was posted on The Christian Science Monitor website yesterday...and I found it in a GATA release.


Junior cash crisis mounts. No quick turnaround.

They say you can go three weeks without food, but only three days without water. How long can the dominant market for global exploration - Canada - go without cash?

It's an open question, though as the number of exploration equities trading between C$0.005 to C$0.01 pile up, you have to think the answer, the time until the equities in question become carrion, is not much longer.

To call them zombies is being kind. This implies some measure of life, be it a mere lust for brains.

This article was posted on the Internet site yesterday...and I thank reader U.D. for passing it along.


Commodity super cycle is ‘alive and well’: McKinsey & Co.

Recent declines in commodity prices have raised the idea that the so-called commodity supercycle is over, but not everyone believes that.

Month to date futures prices, based on the most-active contracts, for gold have lost around 5%, silver’s down over 7%. Oil and natural-gas futures have lost around 4%.

But “despite recent falls, commodity prices are still near their levels of early to mid-2008, just before the global financial crisis hit,” said analysts at McKinsey & Company, in a recent research note.

This short commentary was posted on the Internet site very early on Thursday afternoon...and it's courtesy of reader Ken Hurt.


Latest Indian gold smuggling bust snares customs officials

The Central Bureau of Investigation in India has registered a case against two officials of the Customs Department for allegedly receiving gifts and remuneration from gold smugglers to clandestinely allow them to carry out their illegal activities.  

The matter first came to light on September 19, in what is being termed the biggest seizure of smuggled gold at an Indian airport. Gold bars weighing 20 kilograms were seized from two young women at the Cochin international airport, concealed in specially made jackets worn by the women.

The women have since been spilling the beans, giving information about a smuggling racket involving customs officials that is rife at the Cochin airport.

This story, filed from Mumbai, was one I found on the Internet site in the wee hours of this morning.


Mike Maloney: Hidden Secrets of Money [3]: Dollar Crisis to Golden Opportunity

Join Mike Maloney in Singapore as he states his case for why he expects the world to have a new monetary system in this decade. Whether it is countries repatriating their gold supplies, or creating bilateral trade agreements -- these events are all deemed to be 'Golden Nails' in the coffin of the U.S. Dollar Standard.

Mike sent me his latest video on Tuesday, but for length reasons [36 minutes] it had to wait until Saturday's column.  It's already had over 182,000 hits...and I've watched the whole thing already...and it's definitely worth your time.



¤ The Funnies

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¤ The Wrap

This looks like stonewalling of some kind.  But it’s like the State Department investigating Benghazi.  It’s a review by the CFTC that, on the surface, doesn’t have any credibility.  I would expect that an outside inspection of the same data the CFTC had access to, would show something very different. - John Hathaway commenting on the CFTC's findings in the silver market on Wednesday

Today's pop "blast from the past" needs no introduction, but this is the first time I've heard it played with a full orchestra. Former Supertramp lead singer and co-founder Roger Hodgson wrote and composed this song by himself. He has talked about how and when he composed it, and he always saw it being played with an orchestra. So, seeing it with an orchestra, we are seeing it the way the composer originally intended it. This epic is on the album "Even in the Quietest Moments."  The link to the video is here.

Today's classical "blast from the past" dates from the "Roaring 20s".  Joseph-Maurice Ravel was a French composer known especially for his melodies, orchestral and instrumental textures, and effects. Along with Claude Debussy, he was one of the most prominent figures associated with Impressionist music. Much of his piano music, chamber music, vocal music and orchestral music has entered the standard concert repertoire. Ravel is known best for his orchestral work Boléro, which he considered trivial, and once described as "a piece for orchestra that contained no music" and also predicted "that most orchestras would refuse to play it."

Of course the public the world over has decided otherwise, as the composition was a sensational success when it was premiered at the Paris Opéra on November 22, 1928.  You haven't lived until you heard this live and in concert with a large orchestra.  Here is the Wiener Philharmoniker doing the honours under the baton of maestro Gustavo Dudamel.  Put it on full screen, and turn the sound way up.  The link is here.

You don't need me to paint you another picture of what happened in gold and silver yesterday, as the charts at the top of this column tell all.

Here's the 1-month silver chart, and you can see, that except for breakout on the FOMC news last week, silver has been contained below the $22 spot price mark all this week, and most of the prior week.  How long "da boyz" intend on keeping this up is unknown, but it can't last forever, as there's only so much downside blood left in this particular stone.

I was happy to see John Hathaway's comment above as it appeared on the King World News interview posted further up in today's column.  John is about as conservative main-stream as you're going to get, and I was frankly quite surprised to see him speak so forcefully/truthfully on this issue.  We need more like him.  Maybe the miners will get the message, but the subject was never broached at the Denver gold show, at least not in public.  But there's no doubt that every mining executive out there knows what the true situation is.  We need one of them to come in out of the cold like Hathaway just did, andand Eric Sprott and John Embry before him.

As John Kenneth Galbraith so eloquently put it, "All successful revolutions are the kicking in of a rotten door. The violence of revolutions is the violence of men who charge into a vacuum," and this price management scheme certainly qualifies.  Maybe we should put out a "Want Ad" for men of principle in the precious metal mining industry.  But from what I've seen so far, none would qualify.

That's all I have for today, and for the week.  A new month is now in front of us, and hopefully it will prove to more positive than the one that JPMorgan et al has just provided for us.

See you on Tuesday.