Note to readers: As you will read further down, I had some real e-mail issues...and that's why today's column [such as it is] is late.
With the U.S. markets closed for the Martin Luther King holiday...and not forgetting the inauguration...it was pretty quiet in the gold market everywhere on Planet Earth yesterday. Gold rallied about five bucks to around the $1,690 spot mark shortly after the markets opened in the Far East...and then more or less stayed at that level for the rest of the day.
Gold closed the trading at $1,690.10...up $5.40 on the daily. Net volume was hardly worth mentioning...around 35,000 contracts.
Silver rallied about a dime at the Far East open on their Monday...and they slid to its low of the day, which came shortly after 11:00 a.m. in London. From there it recouped all its losses...and finished the day at $32.02 spot...up 15 cents from Friday's close. Volume was only 11,000 contracts.
The dollar index did precisely nothing. It opened at 80.05...and chopped sideways in a very tight range, closing at 80.03.
With New York closed, there wasn't much action in Toronto yesterday...and the TSX Gold Index close up about a half a percent. The silver stocks that traded on the TSX closed mostly in the green as well.
Not surprisingly, there were no reports from the CME, GLD, SLV or the U.S. Mint.
I forgot about the fact that there was a holiday in the U.S. yesterday, as I could have save myself the trouble of writing a column today. On top of that, I'm out of town...and my ISP's e-mail system is down so I'm writing this out of my Hotmail account...and I can't retrieve any stories that I've been accumulating since Saturday morning, so I'm just going to post the gold-related ones that were dispatched on the GATA website over the weekend. I only have eight stories in total...and they're all worth spending time on...especially the first one.
1] Pacific Group to convert a third of hedge-fund assets to physical gold - Bloomberg
2] Sweden's central bank keeps most of its gold abroad without audit - goldcore.com
3] India raises gold import tax but it's unlikely to deter buyers - Reuters
4] Keiser Report examines Germany's gold repatriation/Doug Casey Interview
5] Without asking a single question, The Economist is sure that gold does nothing
6] Interview with James Turk
7] Alasdair Macleod: Gold reserve mysteries - GATA
8] Signs of shortage of investment silver, CMI's Haynes tells KWN
9] Worried about gold confiscation? Why not buy silver instead? - Mineweb
On October 30, 2012, Mason Graphite Inc. began trading on the TSX Venture Exchange under the symbol “LLG”. Mason Graphite is focused on the exploration and development of its Lac Guéret graphite property located in northeastern Quebec. Based on the current National Instrument 43-101 compliant Measured & Indicated mineral resource of approximately 7.6 million tonnes grading 20.4% Cgr (carbon as graphite), the Lac Guéret property hosts one of the highest grade graphite deposits known in the world. Mason Graphite is led by Benoit Gascon, CA CMA, who has held 20 years of executive positions at Timcal, including over 6 years as CEO. Timcal, now owned by Imerys, is one of the largest graphite producers in the world. Mason Graphite has 56.9M shares outstanding and 74M shares on a fully diluted basis. For more information on the company, please visit www.masongraphite.com, email firstname.lastname@example.org or call +1 (416) 861-1685.
There are no markets anymore...only interventions. - Chris Powell, GATA
Of course since there was no one around in New York, there was virtually nothing going on in any market yesterday.
I was particularly intrigued by the first story on the above list...as this is just another brick in the wall for "da boyz"...more physical gold disappearing from the market and placed far out of reach of the Western central banks. As I said in my Saturday column, how soon will the trickle of physical demand turn into a flood...whether it's repatriation by governments, or physical demand by large investment funds that can see the writing on the wall? Of course you can also include retail demand which, if you check the U.S. Mint statistics year-to-date, are already very impressive.
Except for the core non-believers, it was pretty much the consensus at the Vancouver Investment Conference that the move by Germany to repatriate some of its gold, was a seminal event...and as I also said in Saturday's column...who will be next...and how soon?
This game of musical chairs in the gold market is sure to end badly, as it's an absolute certainty that all the central bank gold that they say they have, isn't there. Only a limited number of requests are going to be honoured by the New York Fed...and its U.K. counterpart. Those that wait to long to make their move, are going to walk away empty handed. One has to wonder who will be the last country to get theirs back before the door gets slammed shut. Don't forget that all the money and all the power in the world is now in play in the gold market...and it will get ugly before this game is all over. Stay tuned.
As I mentioned on Friday, both Saturday and today were going to be brief...and that's what they were. I have a plane to catch fairly early this morning....and as I hit the 'send' button at 2:41 a.m. Eastern time...gold is up a few dollars and silver is flat. Volumes are about average...and the dollar fell almost 25 basis points starting at noon in Hong Kong.
Let's see what New York trading brings for us today.
See you on Wednesday.