The gold price traded in a very narrow price band everywhere on Planet Earth yesterday...and every attempt to break above the $1,580 spot price mark gold sold off immediately.
Gold closed at $1,576.60 spot...up $10.10 on the day. Net volume was a very quiet 105,000 contracts.
Silver started off the Wednesday trading session in the Far East by getting sold down to around the $26.70 spot mark...but after recovering back to $27...the silver price traded between that price and the $27.25 spot mark for the rest of the day.
Silver closed in New York at $27.14 spot...up 33 cents from Tuesday. Net volume was around 28,000 contracts.
The dollar index opened around the 83.40 mark...and then declined to its low of the day [around 83.11] shortly before lunch in London. From that low, the index rose in fits and starts to its 83.58 high which came at 2:30 p.m. Eastern time. From there it got sold down about 15 basis points going into the close...finishing the day up less than 10 basis points from where it opened.
The gold stocks were under selling pressure right from the opening bell...with the low of the day coming around 2:30 p.m. in New York...the exact time that the dollar index hit its high. From that low, the gold stocks gained back over a percent of their losses. The HUI closed a hair above the 400 mark...down 2.07% on the day. I thank Scott Pluschau for providing the chart once again.
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The silver stocks finished mostly down as well...although there was the odd green arrow here and there. Nick Laird's Silver Sentiment Index finished down 0.43%.
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It was another very quiet Daily Delivery Report from the CME yesterday, as only 1 gold and 2 silver contracts were posted for delivery on Friday. There are still 1,721 silver contracts open in the July delivery month.
There were no reported changes in either GLD or SLV...and no sales report from the U.S. Mint, either.
Over at the Comex-approved depositories on Tuesday, they reported receiving one good delivery bar at the HSBC USA warehouse...and shipped 651,306 troy ounces of silver out the door over at Scotia Mocatta. The link to that action is here.
I have a few less stories than normal today, as it was a very quiet news day yesterday...and I'll leave the final edit up to you.
San Bernardino on Tuesday became the third California city in less than a month to seek bankruptcy protection, with officials saying the financial situation had become so dire that it could not cover payroll through the summer.
The unexpected vote came at the suggestion of the interim city manager, who said the city faces a $46-million deficit and depleted coffers.
We have an immediate cash flow issue," Andrea Miller told the mayor and seven-member City Council.
Mayor Patrick Morris called the decision, passed on a 4-2 vote, a "stain" on the city. But he said the only other option was "draconian cuts" to all city services, including the police and fire departments.
This story was posted in the Los Angeles Times late on Tuesday evening...and I thank Scott Pluschau for sending it. The link is here.
Federal Reserve Bank of St. Louis President James Bullard said the U.S. fiscal position is as weak as some euro-area countries’ and lawmakers must take “dramatic” measures to tackle it and restore confidence.
“The U.S. fiscal situation is similar to that of some countries in Europe and requires dramatic and sustained attention,” Bullard said in a speech in London. “The political compromise in the U.S. has been to delay action until after the November election, but markets tend to pull the uncertainty forward.”
Bullard said that while the U.S. economy is growing, the pace is “sluggish” and the “most pressing” issue is the debt crisis in Europe. He said payrolls data last week hadn’t changed his outlook for a “modestly improving” performance in the second half of the year.
“Increased government spending today followed by higher future taxes is not likely to produce more rapid growth,” he said. “The most likely way forward continues to be a long period of debt pay down and sluggish growth, both in Europe and the U.S., and that the most pressing policy issue is to accept this path and prevent any additional problems from developing.”
This Bloomberg story showed up over at the moneynews.com website on Tuesday morning...and I thank West Virginia reader Elliot Simon for digging it up for us. The link is here.
More than $200 million in customer money is allegedly missing from the accounts of one of the largest, non-clearing, US futures commission merchants, PFG Best, according to regulators. Customers have been told their money is frozen. Does this sound oddly familiar?
This is Lauren Lyster's Capital Account program over at the Russia Today Internet site. It's the Tuesday edition...and is worth the listen if you have twenty-seven minutes just now. I thank reader 'David in California' for finding this for us...and the link is here.
With the rate at which horrifying examples of widespread moral bankruptcy and fraudulent misdeeds are coming to light in the financial industry today, one can scarcely afford a moment's rest for fear of missing the dastardly disgrace du jour.
Already this week, even as investors continue to wrap their heads around the monumental LIBOR rate-rigging debacle, the dramatic implosion of futures brokerage PFGBest amid a reported shortfall in customer-segregated accounts has shattered hopeful notions that the MF Global disaster would remain an isolated event.
Here is Motley Fool's precious metals analyst Christopher Barker with his commentary on the debacle involving PFGBest parent company, Peregrine Financial Group. The link is here.
Struggling to meet euro zone financial targets, Prime Minister Mariano Rajoy of Spain introduced his latest package of tough austerity measures Wednesday, including a rise in the sales tax, reversing his previous stance.
The package, Mr. Rajoy’s fourth set of budget measures in seven months, is intended to reduce the budget deficit by €65 billion, or $80 billion, over two and a half years. It follows a decision by European Union finance ministers Tuesday to relax Spain’s deficit target for this year to 6.3 percent of gross domestic product, rather than the 5.3 percent target that was set only four months ago. But the finance ministers also said they expected Madrid to continue showing progress on its deficit cutting.
The new austerity plan came as Finland’s prime minister, Jyrki Katainen, issued a warning Wednesday that the euro’s predicament was as perilous as at any time in the past two years. “This situation is dangerous, very dangerous,” he said in an interview with Finland’s biggest daily, Helsingin Sanomat.
This 2-page story showed up in The New York Times yesterday...and I thank Phil Barlett for sending it along. The link is here.
Bank bailouts don't work, GoldMoney founder James Turk writes in his latest commentary, celebrating Iceland's revival after refusing to make itself the slave of big banks.
This short essay is posted over at the goldmoney.com website...and I pulled it from a GATA release yesterday. The link is here.
The first is with Rick Rule...and it's headlined "We are Near an Epic Collapse in Confidence". The second blog is with Stephen Leeb...and it's entitled "All Hell is Going to Break Loose on the Upside in Gold".
GoldMoney published its "Ultimate Guide to Buying Gold" yesterday...examining ways of acquiring coins and bars, exchange-traded and closed-end funds, certificates, futures, mining company shares, and metal in GoldMoney-style bailment systems. The guide is posted in PDF format at the GoldMoney Internet site here.
A 1,000-year-old hoard of gold coins has been unearthed at a famous Crusader battleground where Christian and Muslim forces once fought for control of the Holy Land, Israeli archaeologists said on Wednesday.
The treasure was dug up from the ruins of a castle in Arsuf, a strategic stronghold during the religious conflict waged in the 12th and 13th centuries.
The 108 coins - one of the biggest collections of ancient coins discovered in Israel - were found hidden in a ceramic jug beneath a tile floor at the cliff-top coastal ruins, 15 km (9 miles) from Tel Aviv.
This very interesting Reuters story was picked up on the news.yahoo.com website...and I thank Scott Pluschau for being the first reader through the door with it. The link is here...and the photos are worth the trip all by themselves.
Erste Group's commodity analyst, Ronald Stoferle, has produced what may be the most comprehensive and incisive report about gold's use and prospects as money throughout history and into the age of negative interest rates and "financial repression" by bankrupt governments. The report, published today and titled "Gold Report 2012 -- In Gold We Trust," concludes that gold's rise is likely to continue as the metal is gradually reintegrated into the world financial system.
The two links associated with this report are imbedded in this GATA release. The main report runs 120 pages...so you'll need to pack a lunch for this one. It's well worth reading of course..and the link is here.
German journalist Lars Schall interviewed Erste Group market analyst Ronald Stoeferle about his new comprehensive report on gold's prospects and value and its relation to other markets. The interview, headlined "The Seed for an Even Bigger Crisis Have Been Sown"...and is posted at Schall's Internet site here.
The new media and the 24-hour news cycle have a great deal to answer for, not least encouraging a political class which would otherwise be happily engaged expensing duck houses into the belief that it should demonstrate perpetual action on our behalf – hence the endless stream of badly drafted legislation from the corridors of Whitehall.
It does, however, reveal things that would otherwise be ignored. The issue of manipulation in the gold market which I wrote about last week is a case in point. The ball of half-truths and downright lies which have surrounded the issue for a long time is beginning to unspool in an issue internet activists kept alive long before it was acknowledged by the mainstream media.
People ask why the issue is important at a time of naked market manipulation of the Libor rate. The answer is simple: the Libor manipulation scandal can be seen as the thin end of the wedge in terms of government market manipulation.
Although Libor manipulation affects the interest rates we pay on all number of credit products, gold market manipulation is more serious still.
This story showed up on the telegraph.co.uk Internet site late yesterday afternoon...and I found it posted in a GATA release. It's a must read as well...and the link is here.
Freegold Ventures Limited is a North American gold exploration company with three gold projects in Alaska. Current projects include Golden Summit, Vinasale and Rob. Both Vinasale and Golden Summit host NI 43-101 Compliant Resource Calculations.
The 2012 exploration program includes additional drilling on both Golden Summit and Vinasale. An updated NI 43-101 resource was calculated on Golden Summit in December 2011 and using a 0.35 g/t cutoff is 14,840,000 tonnes @0.66 g/t Au - hosts 316,000 ounces in the indicated category and 50,0460,000 tonnes @0.61 g/t Au - hosts 991,000 ounces in the inferred category. Drilling has been underway on this road accessible project since mid January. To date over 36,000 feet have been drilled since January on the project, of which 30,000 feet have been aimed at resource expansion. Drilling remains ongoing. An updated NI 43-101 is expected to be completed in Q3.
Additional drilling is also underway on Vinasale. Vinasale currently hosts recently updated NI 43-101 resource calculation of 49,320,000 mt @1.09 g/t for a total of 1,735,000 contained gold ounces in the inferred category using a 0.5 g/t cutoff. Please visit our website for more information.
If government wishes to see a depression ended as quickly as possible, and the economy returned to normal prosperity, what course should it adopt? The first and clearest injunction is: don’t interfere with the market’s adjustment process. The more the government intervenes to delay the market’s adjustment, the longer and more grueling the depression will be, and the more difficult will be the road to complete recovery. - Murray N. Rothbard
It was a nothing sort of day yesterday. Even though volume was light, both gold and silver wanted to break out to the upside...but both were easily held in check...gold, whenever it attempted to break through $1,580...and silver whenever it made it above $27.25 spot.
It was nice to see some media exposure for the gold price management scheme show up in The Telegraph yesterday...and I'm hoping that there will be more to come in the days and weeks ahead. But, like the LIBOR scandal, we'll have to wait for some time to pass to determine whether the exposure will result in any changes.
All four precious metals were under a little price pressure during the Far East trading day on their Thursday, even though the dollar index was trading sideways. London has just opened as I type this sentence...and nothing exciting is happening there at the moment, either. Volumes are very light across the board...and the dollar index still isn't doing a thing.
These are definitely the 'summer doldrums'...courtesy of JPMorgan et al, of course. But with prices being what they are...and both gold and silver pretty much all sold out to the down side, this is an excellent opportunity to add to your physical stash of precious metals.
As I hit the 'send' button at 3:21 a.m. Eastern time, gold is down about nine bucks...and silver is down about 30 cents. But with volume levels being what they are at the moment, I wouldn't read a thing into the current price activity, either up or down.
Before signing off, I'd like to point out the upcoming "Casey's Fall Summit - Navigating the Politicized Economy". It's being held over three days...September 7-9th at the Park Hyatt Aviara Resort in Carlsbad, California. It's being co-sponsored by my good friend Eric Sprott...and it will be well worth attending...and like every other Casey Research summit, it will sell out quickly. You can find out more by clicking here.
See you on Friday.