Gold & Silver Daily
"I'm not overly optimistic about the silver price going forward"

¤ Yesterday In Gold & Silver

The gold price chopped around in a five dollar price range all through Far East and the first half of London trading on their Friday, but at 8:30 a.m. EDT the price began to rally, but ran into the usual not-for-profit sellers right away.  The high tick came at, or shortly before the London p.m. gold fix, before getting sold back to almost unchanged.  It rallied a bit starting around noon in New York, but didn't do much after that.

The low and high tick were recorded by the CME Group as $1,186.00 and $1,194.40 in the August, which is the new front month.

Gold finished the Friday session at $1,190.00 spot, up $2.20 on the day. Net volume was only 108,000 contracts, which wasn't a lot.

As always, it was almost an identical price pattern in silver, which is obvious from looking at the charts, so I shall spare you the play-by-play.

The low and high ticks in the metal were reported as $16.64 and $16.85 in the July contract.

Silver closed on Friday in New York at $16.70 spot, up 4 cents from Thursday's close.  Net volume was only 25,500 contracts.

Platinum chopped sideways until shortly before 11 a.m. in New York---and then it got sold down into the COMEX close.  Platinum finished the Friday session at $1,109 spot, down 5 bucks from Thursday.

Palladium chopped around a couple of bucks either side of unchanged until 2 p.m. Zurich time---and then got sold down 7 dollars by the COMEX open, which was twenty minutes later.  By around 10:30 a.m., EDT, the price was back in the green.  But within two hours it had been sold down 11 bucks---and didn't do a lot after that.  The metal was closed down 8 dollars on the day to $775 spot.

The dollar index closed at 96.88 late on Thursday afternoon in New York---and it chopped around that number in a wide range throughout the entire Friday session, closing at 96.85---down 3 basis points from Thursday's close.

The gold stocks opened unchanged, but blasted to their highs of the day, along with the gold price, shortly before 10 a.m. in New York.  From there they slid into negative territory, hitting their low tick around 11:30 a.m.  They rallied back into positive territory in the next hour or so, but couldn't hold it, as the HUI closed down 0.17 percent.  I thank Nick Laird for the chart.

The silver stocks followed almost the same pattern as their golden cousins, but they managed to close in the green, as Nick Laird's Intraday Silver Sentiment Index closed higher to the tune of 0.42 percent---but well off their highs.

Nick advised us that for the week just past the HUI and the Intraday Silver Sentiment Index both closed down another 2.6 percent apiece.

The CME Daily Delivery Report for Day 2 of the June delivery month showed that only 3 gold and 2 silver contracts were posted for delivery within the COMEX-approved depositories on Tuesday.  Nothing to see here which, I must admit, is a bit of a surprise.

The CME Preliminary Report for the Friday trading session showed that gold open interest in June fell by 2,830 contracts, down to 5,550 contracts.  That's a pretty decent amount of gold for a delivery month---and that's why I'm surprised that the first two delivery days have been as quiet as they were.  Obviously that will change---and in rather short order I would think.

June open interest in silver fell by 195 contract, leaving only 32 left for delivery, minus the 2 posted in the previous paragraph.  Unless some surprise deliveries show up as the month progresses, silver deliveries are going to be a real yawner.  But that should come as no surprise, as June is not a traditional delivery month for silver anyway.

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

I wasn't expecting a sales report from the U.S. Mint yesterday, but we got one.  They sold 6,500 troy ounces of gold eagles---2,500 one-ounce 24K gold buffaloes---and 375,000 silver eagles.

Month-to-date the mint has sold 21,500 troy ounces of gold eagles---9,500 silver eagles---and 2,023,500 silver eagles.  Based on these figures, the silver/gold sales ratio works out to 65 to 1.

And as Ted has been mentioning for most of the month, the big buyer of silver eagles appears to have stepped away from the table---and in obvious response to that, the U.S. Mint has ended rationing of silver eagles.  I have a story about this in the Critical Reads section below.

It was another 'nothing' day for gold deliveries at the COMEX-approved depositories on Thursday.  Nothing was received---and only 1,286 troy ounces were shipped out.

There was a decent receipt in silver, as 601,024 troy ounces were reported received---all at Brink's Inc.---but only 30,186 troy ounces were shipped out the door.  That silver came out of the depositories over at HSBC USA.

Over at the COMEX-approved gold kilobar depositories in Hong Kong on their Thursday, they reported receiving 5,843 kilobars---and shipped out 5,024.  I'm on the road at the moment---and don't have the links to any of the above movements, as they're on my home computer. 

The Commitment of Traders Report, for positions held at the close of COMEX trading on Tuesday was a crushing disappointment in silver---and pretty decent in gold.

In silver, the Commercial net short position only declined by 983 contracts, which is nothing.  The Commercial net short position is still way up in the stratosphere at 61,502 contracts, which translates into 307.5 million troy ounces, a hair under 134 days of world production.

The Big 4 were unchanged---and Ted thinks that JPMorgan's short position is basically unchanged at 20,000 contracts, with a possible revision with next week's Bank Participation Report.  The big '5 thru 8' upped their short position by 300 contracts to a new six year record of 75,529.  The raptors, the Commercial traders other than the Big 8, added 1,200 new longs and sit at 14,000 contracts net long. The traders in the Managed Money category in the Disaggregated COT Report did next to nothing.

In gold, the Commercial net short position declined by 22,614 contracts, or 2.26 million ounces, which was in line with Ted's expectations.  The Commercial net short position is now down to 10.97 million troy ounces.

The Big 4 bought back 7,600 short contracts, the big '5 thru 8' bought back a little over 4,000 shorts---and the raptors added 10,500 new longs. On the sell side, Managed Money only accounted for 12,373 contracts.  They did this by reducing their long position by 7,237 contracts and going short an additional 5,136 contracts.

I'm less than amused with the silver situation in this past week's COT Report---and I'd like to blame it on tardy reporting standards, but if that was the case, then it should have equally applied to gold as well, which it obviously didn't according to Ted.  I'll have more on this in The Wrap.

Here's Nick's "Days of World Production to Cover Short Positions" for all physically traded commodities on the COMEX---and you can see why I said that the short position in silver was still in the stratosphere.  Not that I wish to bore you with this minor detail, but it's my opinion based on the Bank Participation Report figures that JPMorgan and Canada's Scotiabank combined, are short about 90 days of world silver production between them.  The Big 8 are short 179 days of world production in total, but these two banks alone are short exactly half of that amount.  How's that for a concentrated short position?

Another week---and another decent withdrawal from the Shanghai Gold Exchange.  They reported taking out 42.493 tonnes on Friday, May 22.  Here's Nick's most excellent chart.

I've tried to cut the number of stories down to a bare minimum---and was only partly successful.  I also have a few that I've been saving for today's column.


¤ Critical Reads

Chicago PMI Bounce Is Dead, Crashes Back Near 6 Year Lows

Following Milwaukee ISM's plunge to 15-month lows this morning with a plunge in new orders (missing for 4 of last 5 months), Chicago PMI printed a disappointing 46.2 (against expectations of a slight rise to 53.0 from 52.3 last month) - lower than the lowest economist estimate.

After last month's modest (dead-cat) bounce back from winter's collapse to 6 year lows, this re-collapse is hardly the kind of Q2--recovery-reinforcing data the mainstream wants. With the level now back at the same when Lehman hit, New Orders, Production, and Employment all contracted in May.

This short Zero Hedge piece showed up on their Internet site at 9:48 a.m. EDT on Friday morning---and the three embedded charts are worth the trip.  Today's first story is courtesy of Dan Lazicki.


"Welcome to the Contraction": Q1 GDP Drops By 0.7%, Corporate Profits Crash

And you thought the preliminary 0.2% Q1 GDP print from last month was bad. Moments ago, just as we warned, the BEA released its latest, first, revision of Q1 GDP (pre second-seasonal adjustments of course), and we just got confirmation that for the third time in the past four years, the US economy suffered a quarterly contraction, with the Q1 GDP revised drastically from a 0.2% growth to a drop of -0.7%: the worst print since snow struck, so very unexpectedly, last winter.

Incidentally, there has not been a US "expansion" with three negative quarters in it in the past 60 years.

Worse, the breakdown shows that far from being a non-core slowdown, consumption rose just 1.8%, below the 2.0% expected, and contributed just 1.23% of the bottom line GDP number. This was the worst Personal Spending contribution since Q1 of last year, when revised GDP dropped by -2.11%.

This very interesting chart-filled news item showed up on the Zero Hedge website at 7:27 p.m. EDT yesterday evening---and it's the second offering in a row from Dan Lazicki.


Santelli: Slice GDP any way you want...

CNBC's Rick Santelli discusses bond prices and yields, after first quarter GDP was revised lower.

This brief 55 second video clip appeared on the CNBC website around 2 p.m. EDT yesterday afternoon---and it's the third contribution in a row from Dan L.


What Will Happen to a Generation of Wall Street Traders Who Have Never Seen a Rate Hike?

Magdy El Mihdawy remembers exactly where he was when the stock market tanked in 2009.

He was on Spring Break in Florida -- as a 22-year-old undergrad.

Today, El Mihdawy is part of a Wall Street demographic whose own trial by fire awaits: traders who’ve never known anything but a post-crisis world of rock-bottom interest rates and ever-rising markets.

This youth brigade -- call it Wall Street’s class of 2009 - - is about to learn what higher rates from the Federal Reserve look like firsthand. Their inexperience has left older, more experienced colleagues wondering how these relative youngsters will fare.

This Bloomberg story, which includes a 5:51 minute video clip, showed up on their Internet site at 5 p.m. Denver time on Thursday afternoon---and I thank West Virginia reader Elliot Simon for sharing it with us.


Doug Noland: Out of Thin Air

Meanwhile, intermediate- and long-term risks are rapidly escalating. Regrettably, China has prolonged its “Terminal Phase” of excess, with dire consequences. Extending the life of the global Bubble comes with similar risks. At the same time, the building of a non-U.S. alliance and competing global financial infrastructure unfolds in earnest. Clearly, the Chinese military is preparing for a world that is changing in profound ways. The U.S. military has begun to adjust as well.

Global markets remain unsettled. The Chinese stock market Bubble has all appearances of an accident in the making. A Greek accident could be only days away. European periphery debt markets appear more fragile. EM seems more vulnerable. Currency markets are highly unstable. The dollar, bunds and Treasuries caught decent safe haven bids this week.

The age old problem with creating “money” is that once commenced in earnest it’s extremely difficult to curb. There comes a point where the soundness of the underlying Credit structure begins to be questioned. Such questioning is well overdue. Do central bankers have any idea of their role in fomenting geopolitical turmoil? Just print “money” Out of Thin Air.

Doug's weekly Credit Bubble Bulletin is a weekly must read for me---and his Friday evening missive is no exception.  I thank reader U.D. for passing it around.


Where the River Runs Dry: The Colorado and America’s water crisis

Our pilot, David Kunkel, asked me to retrieve his oxygen bottle from under my seat, and when I handed it to him he gripped the plastic breathing tube with his teeth and opened the valve. We had taken off from Boulder that morning, and were flying over Rocky Mountain National Park, about thirty miles to the northwest. We were in a Maule M-7, a single-engine “backcountry” plane, and Kunkel was navigating with the help of an iPad Mini, which was resting on his legs. “People don’t usually think altitude is affecting them,” he said. “But if you ask them to count backward from a hundred by sevens they have trouble.” What struck me at that moment was not how high we were but how low: a little earlier, we had flown within what seemed like hailing distance of the sheer east face of Longs Peak, and now, as Kunkel banked steeply to the right to give a better view of a stream at the bottom of a narrow valley, his wingtip appeared to pass just feet from the jagged declivity beneath. Snow had fallen in the mountains during the night, and I half expected it to swirl up in the plane’s wake.

The other passenger, sitting in the co-pilot’s seat and leaning out the window with a camera, was Jennifer Pitt, a senior researcher for the Environmental Defense Fund. Pitt, who is in her forties, is the director of the E.D.F.’s Colorado River Program. She has long brown hair, which she had pulled back into a ponytail, and she was wearing a purple fleece. Most of her work in recent years has involved the river’s other end, in Mexico, but she had agreed to show me its source. We were bound for the Colorado’s headwaters, just over the Continental Divide, roughly fifty miles south of the Wyoming state line. “The best way to see a river system is from the air,” she had told me.

This long essay, which is your big read of the day, appeared on The New Yorker's website on Monday---and for length and content reasons had to wait for today's column. It's the second offering in a row from reader U.D.


Cameron presses E.U. for renegotiation of British membership

British Prime Minister David Cameron began a two-day, four-country tour of Europe with a goal of renegotiating his country's role in the European Union.

He visited Netherlands Prime Minister Mark Rutte and French President Francois Hollande on Thursday. Talks with Polish Prime Minister Ewa Kopacz and German Chancellor Angela Merkel are scheduled for Friday, bringing the message that Britain is seriously considering leaving the EU.

Cameron's Conservative Party, campaigning on "a better deal for Britain," won a solid re-election last month, and in 2017 a referendum will be offered British voters on whether to remain in the E.U.

To prevent a British exit, or "Brexit," Cameron seeks restrictions on social welfare benefits to legal E.U. immigrants; assurance that countries that do not use the euro as currency, such as Britain, cannot be hurt by free trade protections in goods and financial services; an exclusion from an obligation to seek an "ever closer union;" and the return of some powers to national parliaments.

This UPI story, filed from Paris, appeared on their website at 8:35 a.m. EDT yesterday morning---and I thank Roy Stephens for his first offering of the day.


Cameron playing ‘dangerous’ game on EU referendum, says France

France has warned Prime Minister David Cameron that a referendum on Britain’s European Union membership is "risky" and “dangerous,” while German Chancellor Angela Merkel has indicated reforms are possible.

French Foreign Minister Laurent Fabius issued the frank warning on Thursday, adding that Paris would reject Britain’s demands for a special status in the EU.

Cameron visited France on Thursday as part of a four-nation European tour in which the PM seeks to gain support for his proposed EU reforms.

Speaking alongside German Chancellor Angela Merkel in Berlin on Friday afternoon, Cameron said it was “right” for Britain to stay in a “reformed European Union,” adding that if the UK fails to win concessions he will “rule nothing out.”

This news item put in an appearance on the Russia Today website at 12:37 p.m. Moscow time on their Friday afternoon, which was 5:37 a.m. EDT in Washington.  It's also courtesy of Roy Stephens.


ECB fears 'abrupt reversal' for global assets on Fed tightening

The global asset boom is an accident waiting to happen as the US prepares tighten monetary policy and the Greek crisis escalates, the European Central Bank has warned.

The ECB’s financial stability report described a “fragile equilibrium” in world markets, with a host of underlying risks and the looming threat of an “abrupt reversal” if anything goes wrong.

Europe's shadow banking nexus has grown by leaps and bounds since the Lehman crisis and has begun to generate a whole new set of dangers, many of them beyond the oversight of regulators.

While tougher rules have forced the banks to retrench, shadow banking has picked up the baton. Hedge funds have ballooned by 150pc since early 2008.

This Ambrose Evans-Pritchard offering appeared on the Internet site at 8:26 p.m. BST on Thursday evening---and it's worth reading.  It's the third contribution in a row from Roy Stephens.


Mistral dead end: Sources say French offer ‘totally impracticable,’ no progress in Moscow talks

Negotiations on the Mistral ships in the Russian capital have wrapped up with no effect - and even without starting properly, sources told media, as the French delegation put forward an “absolutely impracticable” suggestion.

“A delegation of French experts involved in the Mistral talks visited Moscow yesterday, but the negotiations came to nothing,” a source in Russia’s military cooperation circles told RIA Novosti, adding the delegation returned to Paris the same day.

“In fact, the negotiations did not even start as the conditions put forward by the French side were absolutely impracticable,” the source said, without going much into detail and only mentioning the conditions involved “termination of banking accounts.”

As a result the French didn’t even check into a hotel and left for Paris, the source said.

This news item was posted on the Russia Today website at 4:23 p.m. Moscow time on their Friday afternoon, which was 9:23 a.m. EDT in Washington.  I thank Roy Stephens for this story as well.


Art World Hunt: The Quest for Hitler's Lost Treasures

Moss has money and a fake Picasso, but no first name -- he simply goes by "Moss." He's in his early sixties and lives near Dallas, Texas. According to a major American law firm, Moss has $250 million (€228 million) at his disposal at all times, but no one knows how he made his fortune.

The American collects objects with an unusual history -- and, if necessary, he is prepared to pay any price for them.

In January, Moss fell in love with two bronze horses created by one of Adolf Hitler's favorite artists, the sculptor Josef Thorak. They had disappeared for a long time, but now Moss had learned that an art dealer was selling the pair for $8 million. Not a problem for Moss.

Well, it wouldn't be a problem for Moss if he actually existed. But there is no Moss. He's the invention of Dutch art detective Arthur Brand, who created the persona as a way to respond to objects the art dealer was offering for sale, including Thorak's horses and other objects revered by the Nazis.

With Moss' help, the authorities finally carried out a sensational bust: During a nationwide raid on Wednesday, officers with the Berlin State Office of Criminal Investigation searched the apartments and houses of seven suspects and found an important cache of lost Nazi art treasures.

This longish, but very interesting essay, showed up on the German website on Tuesday afternoon Europe time---and for obvious reasons had to wait for my Saturday column.  I thank reader M.A. for finding it for us.


The Ukraine Imbroglio: John Batchelor Interviews Stephen F. Cohen

A lot has happened since Sec. State, Kerry made his dramatic turnaround visit with Putin in Sochi, and our favourite pundits note that not a lot of it sees a good outcome for Minsk2 and the Ukraine Civil War. In brief the hostilities have not ceased there, nor has the New Cold War warmed any. For example, on May 17, Assistant Sec. State Nuland (f**k the E.U.) was in Moscow to see if Washington could be involved in Minsk2 discussions and stated in leaving that Minsk2 would not be realized until Russia stopped attacking in the Donbass – thereby torpedoing the diplomacy herself. The Ukrainian Rada withdrew its transit permission for Russian troops to supply the breakaway province of Transnistria from Moldova. And ignoring the Western troops already in Ukraine, NATO hypocritically demands the withdrawal of all Russian troops from the Donbass. And lastly, Kiev is calling out frantically for financial aid from the West.

Once again Stephen F. Cohen and John Batchelor discuss all these points in all their horrendous greater details, and especially the infighting of the various war parties in NATO, the EU, and Washington. All is revealing that Putin is likely still on his game plan of allowing the economic collapse of Ukraine to resolve itself in regime change. It is very clear from this discussion that Cohen understands that there is a real trust issue that is going to hinder any détente possible with Washington, and that Ukraine still remains the hot bed of instability for war between Russian and the West.

This 39:51 minute audio interview was posted on the Internet site on Tuesday---and I thank readers Larry Galearis and Ken Hurt, both of whom contributed to this story. 


Russia offers to discuss BRICS prototype of SWIFT global system

The Central Bank of Russia (CBR) has proposed a discussion about establishing an analogue to the SWIFT global network for transmission of financial information that processes $6 trillion worth of communiqués daily.

The CBR hopes to cut the risks of possible disruptions.

"Seriously speaking, there is no analogue to SWIFT at the moment in the world, it is unique. The only topic that may be of interest to all of us within BRICS is to consider and talk over the possibility of setting up a system that would apply to the BRICS countries, used as a backup," said Deputy Governor of the Central Bank of the Russian Federation Olga Skorobogatova on Friday.

Russia got seat on the SWIFT board in March, despite numerous threats from the U.S. and its allies to disconnect Russia from the system.

This news story appeared on the Russia Today website at 12:03 p.m. Moscow time on their Friday afternoon---and I thank Roy Stephens for digging it up for us.


G7 agree ‘in principle’ to add Chinese currency to IMF basket – German Finance Minister

The finance ministers of G7 have supported the inclusion of the yuan in the IMF currency basket. The decision means the yuan has gained international recognition after Beijing was accused of artificially curbing the exchange rate for more than ten years.

However, the issue has to be discussed thoroughly first, said German Finance Minister Wolfgang Schaeuble on Friday concluding the meeting of G7 finance ministers and central bank governors in Dresden.

"We were completely agreed that it is desirable in principle, that the technical conditions must be examined, but there are no politically divergent views on this," Schaeuble said adding that there still are technical and other issues to be clarified. "We are in full agreement on the goal, but it would not be good to rush it," he said.

Yuan’s inclusion into the IMF basket would also raise China's influence at the Fund.

This is another news item from the Russia Today website---and another contribution from Roy Stephens.  It appeared on their Internet site very late on Friday evening Moscow time.


Abenomics Heads Toward Debt Meltdown, Reflation Enemies Warn

Two years after unleashing record monetary stimulus, Bank of Japan Governor Haruhiko Kuroda and his allies are confronting increasingly vocal opposition from the opponents of reflation who once dominated the policy debate.

Hundreds of economists filed in to a Saturday symposium on BOJ policy at a Japan Society of Monetary Economics semiannual gathering in Tokyo May 16. Backers of Kuroda’s 2 percent inflation target squared off against advocates of monetary restraint, who say the BOJ’s bond purchases are delaying a crucial overhaul of public finances to deal with record debt.

“The discussion was heated,” Masahiko Takahashi, a professor at Yokohama National University who used to work at the central bank, said of the closed-door, two-hour session. “It’s been two years since the BOJ started QQE and there’s growing interest in the BOJ’s monetary policy and its effects,” he said, using the initials for Kuroda’s stimulus program.

This Bloomberg article was posted on their Internet site at 9:00 a.m. MDT on Thursday morning---and I thank Tres Knippa for passing it around yesterday.


Japan spending slump casts doubt on central bank optimism

Spending by Japanese households slumped unexpectedly in April and consumer inflation came in roughly flat, casting doubt on the central bank's view that a steady economic recovery will help move inflation toward its ambitious 2 percent target.

Households spent less on leisure and dining out even as the jobless rate fell to a 18-year low, underscoring the challenge of eradicating the sticky "deflationary mindset" that has beset Japan for nearly two decades.

While analysts expect consumption to pick up in coming months, lingering weakness will keep policymakers under pressure to underpin a fragile economic recovery.

"It's a pretty gloomy number ... Consumption may take longer than expected to pick up," said Taro Saito, director of economic research at NLI Research Institute.

This Reuters article, filed from Tokyo, appeared on their website at 11:19 a.m. India Standard Time [IST] on their Friday morning---and I thank Elliot Simon for finding this story for us.


Julian Assange on the TPP: "Deal Isn't About Trade, It's About Corporate Control"

It’s mostly not about trade. Only 5 of the 29 chapters are about traditional trade. – Julian Assange in a recent interview with Democracy Now

The content of this unbelievably dangerous gift to multi-national corporations is being kept secret from the public, and for very good reason.

What little we know about the TPP has come from whistleblower site, Wikileaks. This is what Julian Assange thinks of this “trade” treaty in his own words.

This 6-minute video clip is embedded in a Zero Hedge story from Wednesday---and it had to wait for today's column.  I thank Joe Nordgaard for bringing it to our attention.  It's worth your time.


Sprott Money Weekly Wrap Up

Listen to Eric Sprott share his views on ongoing European financial woes, a second seasonal revision to U.S. GDP numbers, the release of a frustrating COT report last week, and the movement in gold.

This 10:22 minute audio interview, with host Geoff Rutherford, was posted on the Internet site yesterday---and it's worth a listen.


U.S. Mint ends rationing of silver eagles -- but for how long?

Coin News reports that the U.S. Mint has ended its rationing of U.S. silver eagle coins.

It's not clear whether the end of rationing is intended to be permanent or if rationing might be reinstated along with reductions and even suspension of production if demand increases enough.

With retail sales in the gutter, there's only one reason that rationing would happen again---and that's if the 'big buyer' [read JPMorgan] steps up to the plate once again---and if they do, it will be because they've kicked the living snot out of the silver price in the interim, just like they did last year about this time.  So we wait.  I found this story in a GATA release yesterday.  It's worth reading.



¤ The Funnies

The photo below is one I took on the 6-frames-a-second setting---and managed to get the 3-point splash-down just right for once.

Alexandria Minerals Corporation (TSX VENTURE:AZX) and Murgor Resources Inc. (TSX VENTURE:MGR) are pleased to announce that they have entered into an arrangement whereby Alexandria will acquire all of the outstanding common shares of Murgor.

Here are some of the benefits for Alexandria's shareholders:

  • Substantial increase in Alexandria's mineral resources
  • Alexandria’s cost of discovering gold is already low, at approximately $15.00/oz. The cost of acquiring Murgor’s gold assets is even lower, at approximately $3.00/oz.;
  • Alexandria will have larger strategic land packages in the well-known and prolific mining camps of Val d’Or and Chibougamau in Québec; Red Lake and Matachewan in Ontario; and Flin Flon-Snow Lake in Manitoba;
  • Alexandria management knows how to capitalize on its strategic assets, as evidenced by Alexandria’s successful track record in discovering its West Zone Au-Cu deposit and then monetizing this exploration project in the sale to Agnico-Eagle  (Alexandria Press Release January 14, 2014);

On January 30 Alexandria closed a non-brokered private placement of $500,000 at a price of 10 cents.  There are neither Finder’s Fees nor Commissions associated with this financing.  Proceeds from the sale of the shares will be used for exploration on its Cadillac Break property group in Val d'Or, Québec and general corporate purposes. Call or email Mary Vorvis, 416-305-4999/, for more information on Alexandria Minerals.


¤ The Wrap

Cautious, careful people, always casting about to preserve their reputation and social standing, never can bring about a reform. Those who are really in earnest must be willing to be anything or nothing in the world's estimation---and publicly and privately, in season and out, avow their sympathy with despised and persecuted ideas and their advocates, and bear the consequences. - Susan B. Anthony

Today's pop 'blast from the past' is actually a ballad by Marty Robbins from way back in 1960.  This B&W video was taped at the Grand Ole Opry---and it's a classic.  The link is here.

Today's classical 'blast from the past' is one I heard on CBC FM as I was driving to work earlier this week---and couldn't get out of my head, so I thought posting it in today's column would help.  I've posted it before, but it's been a while.  It's Mozart's third violin concerto, his most popular of the five he composed when he was 19 years young.  Here's the delightful Hilary Hahn doing the honours along with the Stuttgart Radio Symphony Orchestra.  Gustavo Dudamel conducts---and the link is here.  By the way, the pope at the time was in attendance.

It was another trading session where gold, silver and platinum wanted to rally during the COMEX trading session, but it was equally obvious that "da boyz" weren't about to allow it to happen.  Volumes were pretty light, so it didn't take much to keep prices under wraps.

Here are the 6-month charts for all four precious metals as of the close of trading on Friday.

As I mentioned in my comments on Friday's Commitment of Traders Report, I was not amused by what the silver numbers showed.  During the reporting week, silver smashed through its 200-day moving average---and kissed the 50-day moving average---and the COT Report showed basically unchanged.  Assuming all the data from Tuesday's engineered price decline was reported in a timely manner---and that's a big assumption---I'm not overly optimistic about the silver price going forward.  Of course the critical 50-day moving average hasn't been broken, but that's almost beside the point at this juncture.  The fire power to the downside that JPMorgan et al currently have is awesome---and it's only a matter of time before the unleash it.

On that happy note, I'm signing off, as it's almost 4 a.m.---and I've had enough, as I'm in Vancouver at the moment.

I'll see you on Tuesday.

Ed Steer