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Authorised by whom,exactly ?
It's good to see the gold miners having such a healthier time this year. After the smash they took in 2013 they have some way to go, but they seem to have the strength to do it on the back of the POG rise. I'm not totally up-to-speed with Goldcorp's bid for Osisko but I imagine they will have to pay more or drop out.
Personally, speaking, I think the Chinese are likely to buy several African mines this year
Today looks like another Goldman Sachs 'Slam Dunk Sell' day for gold.....lol
As China imports over 1000 tonnes of gold per year, the Fed shows that, by returning only 5 tonnes of Germany's gold in 2013, it has not only stolen the rest of the Bundesbank's (ie the German people's )gold, it is not going to risk going into the market to buy the latest installment due in Frankfurt.
It probably realises that alongside China, Russia and India buying gold, if it too bought gold to satisfy Frankfurt's demands it would send the POG up such that the 'USD Protection Plan' would be sunk below the water line.
So, as Bernanke closes his last Fed meeting, it must be clear to all that he has presided over and endorsed the theft of Germany's gold and that makes him a crook.
Fun news of the day...Chinese gold fx reserves unchanged over the last 5 years.
You can't blame China for this fib. If they announced even a couple of thousand tons increase the POG would soar and they'd ruin their own purchase price averages.
Tha facts are there for all to see. As the Fed lies through its teeth we can't complain about China.
It should prove very illuminating for us all now that Deutsche Bank (DB) is being investigated for PM market-rigging by the German financial regulator.
Apart from it being significant that DB has withdrawn from the twice daily 'fix,'at the LBMA, the head of regulator BaFin has said publicly that commodity price-rigging,including that of PMs,is a bigger area of crime than Libor -rigging.
Given the huge anti-US feeling in Germany over the Bundesbank's 7-year gold repatriation farce, and Merkel having had her cell-phone tapped by the NSA for 10 years, it seems likely to me that DB will not face the rap on its own but will probably take possible fellow-riggers, like Scotia-Mocatta and Barclays, down with them.
Beans will be spilled by DB, I feel sure.
The London Fix has always been a corrupt system ripe for abuse.Now we have news of Germany looking into the price rigging and with rumors that even the USA is about to investigate. (I'll believe that when I see it).
Back to London... With two of the five gold price 'fixers' being Barclays (Libor rigging crooks) and HSBC (self-confessed drug cartel money launderers) there is no chance that the London Fix was ever going to be an open and fair market.
Personally I think a few jailings would end the rigging virtually overnight.
Bandar seems to be an aggressive sort of operator and has threatened Putin with trouble at Sochi for not towing his line. As far as Saudi-US relations are concerned, I'm personally interested in seeing if, in exchange for oil, Saudi Arabia continues to buy US T-Bonds. Or slows down, or stops.
As a senior Chinese banker said last week that China does not seek more fx reserves (and presumably steps up gold purchases, mine purchases, and real estate purchases in the west)the USD is in for a challenging time from now into the next few years.
I can see the Fed having to 'up' their purchases of US Treasuries as the demand will slacken elsewhere unless there is some significant jump in yield. An interest rate rise in T-Bonds would seriously harm the USA. Its National Debt at almost $17.2 Trillion equates to a 6.1 x Income mortgage.
I'm expecting this week's smash to come sometime nearer to the Thanksgiving break so that sentiment is influenced for the 'long weekend.'
GOFOs are firming, and that's making me wonder if Venezuela 's gold is now starting to enter the market. 200 tons provides enough phys for plenty of smash sales that can be delivered on.
Chavez must be turning in his grave. Now that Venezuela is in such broad financial difficulties it is, naturally, trying to find ways to ameliorate its problems.
However, we now learn that the President of Venezuela has agreed to have Goldman Sachs take and lease out its gold, presumably to earn a few %-age point returns on around 200 tons which the late Hugo Chavez took great pleasure in bringing back from the New York Fed vaults.
The only reason for this 180% policy turnaround must be that Venezuala is almost bankrupt, as in giving GS the gold is a complete reversal of the Chavez view on gold. There remains,also,a risk that this gold me not be recoverable in the medium or longer term. (Germany should know)
From our perspective here, it looks like GS ,as a puppy dog of the Fed and the BIS, now has an extra 200 tons of gold to lease into the market to bolster the project of destroying the gold price.
Two things come to my mind this a.m.
As already commented upon, the barbarous relic is so barbarous to the USA that they will not allow Iran to accept gold for its oil. No clearer sign could present itself that the USA wants to take every step possible to reduce the attractiveness of gold as money in comparison to its lavatory paper dollar.
Secondly, the positive strengthening of GOFOs and the increasing willingness of the BIS to dump shorts in gold in the paper market suggest that the west is stepping up, and will continue to step up, its efforts to destroy gold as a trading medium and a currency.
As the US National debt gets bigger and bigger and China increases its Yuan currency swap arrangements there will be no lengths to which the USA will not go to preserve its now-creaking dollar supremacy as the world reserve currency.
In my opinion they will seek to eliminate all confidence in gold and furthermore, as the likelihood is that Yellen will be forced to increase the amount of QE rather than taper it, the frequency and size of attacks on gold will intensify.
Like most people I cannot put a base level on gold but I would not be surprised at $800 per oz when things get very angry and volatile in the currency markets. The price of gold will, I think, be hit more and more even in extremis, as the USA and the USD slide under the waves.
We can expect no help from China. This price smashing is an answer to their financial prayers and they are unlikely to upset the apple cart buy buying in huge volumes to raise the price against themselves.
Something of a battle going on, this morning..... lol
You've no need to be sorry at all, roadster. No need to apologize..lol
Maguire is saying simply that, it is a fact he said it, and he is at the heart of the LBMA. He should know whether that is a strong possibility of default or not and he has a least the couillons to say it's close.
We will see if he is right or BS- ing.
Don't shoot the messenger.
That's far too NSA, lol
Today: Andy Maguire saying there is now an LBMA default very close in London.
Backwardadtion premiums are increasing strongly in negativity.
There is one hell of a shortage of physical.
Plus, Harvey Organ got it dead right about a smash. Because of the shortage, it simply has not worked. Panic is setting in at the Fed's inability to defeat the phyzz market with paper futures.
China is laughing all the way to the vault.
Dan Collins 'The China Money Report':
'Figures from the People’s Bank? of China showed
that as of August, the country’s savings have
reached a historic high in excess of 43 trillion
yuan (US$7 trillion)?for three consecutive months,
of which deposits in current accounts reached
16 trillion yuan (US$2.6 trillion) while savings
accounts ?held 27 trillion yuan (US$4.4 trillion).
Over the past decade, total savings in China have
increased from 10 trillion yuan (US$1.6 trillion)
in September 2003 to 40 trillion?yuan (US$6.5 tril
lion) in January this year. ?
The numbers have boosted China’s personal saving
rate to over 50%, the highest in the world.'
Now....if we take that very interesting piece of news and then reflect on last fortnight's news that the Chinese Government will now allow Chinese citizens to acquire up to 7 ozs of gold without Customs declaration or excise tax we can see what the enormous effect, even at the margins, will be on gold demand, again, from the East.
The USD is only a few points from a reading on the DXY that says '78 point something.' I think that will start a run down that will prove very unsettling to the US ratings, the US economy, bonds and a tremendous uplift for Gold. And Silver of course.
Charles Evans is still making his 'taper unlikely soon' noises and although the knee-jerk reaction of the Dow is up, everyone knows that the QE Ponzi scheme cannot taper.
China is key. Their T Bond purchase/sale volumes, netted off, will show us all and especially the Fed how close the USA is to self-inflicted destruction.
'Bang The Close' today, I think.
With the DXY at 79.86 as I write I suspect there will be a big battle today to get it back up over 80 with QE funds being used on the international market to buy the USD.
One possible outcome during the next few hours is that panic sets in and the Greenback falls out of bed completely and gold has a $100 day.
My best guess is for a blood-letting fight not seen for a while.
If India did go hog-wild and decide to sell its gold to wipe out three-quarters of its current account deficit, then who is it more likely to sell it to?
It could sell on the open market and have Goldman Sachs manipulate the price down and suffer a poor revenue result, or, maybe, it might prefer to sell its gold to a fellow BRICS nation which has an insatiable demand for gold and with whom it has a currency swap agreement.
Who might fit the bill there?
China is my guess.
Come off it Sparky, you are not fooling anyone.
You and I know, and so does everyone else including the Fed, Goldman and JPM that if you smash the paper market too much and too often the Chinese and Russians, Indians and S/E Asians etc will STAND FOR DELIVERY of physical and all gold in the west will disappear even more quickly than it is now. Even at the current rate COMEX is nearly dry, likewise the LBMA.
This month we have the Moscow Metals Exchange beginning trade and given the strong expansion recently of the Shanghai Metals Exchange, we have a two-fold attack on US Au hegemony, which I feel will change the face of gold-pricing going forward.
We now see two of the BRICS having serious metals exchanges to rival Comex and the LBMA. I see from various sources that China is a huge buyer at around $1300 per oz and today's expected smash was simply more good news for their buying agencies.
The questions I haven't answered for myself yet are 'What will the Fed do when ALL its gold is drained and transported East?'
Will they be forced to buy back Germany's gold on the Chinese and Russian markets ?
I think they will because the desperation currently shown by the Fed to protect the USD by smashing the paper gold price on increasing numbers of occasions has simply back-fired and stimulated eastern sovereign demand.
I am probably not alone in thinking it unlikely that Shanghai and Moscow will not allow toxic US banks to trade heavily in the paper market on their own turf. That would be like the chickens asking the fox to Feng Shui the chicken coop.
The other interesting thing is how desperate the Fed now looks as it becomes more widely known how Bernanke has perpetrated an enormous fraud upon the US people, and their economy, via his flawed thesis in liquidity within economic strategy.
Janet Yellen will soon regret taking the poisoned chalice Fed Chair job as the infection in US economic strategy is a stronger hold and she and Obama have no antibiotics.
It looks like Bart Chilton has wimped out.
I'm now wondering how the J P Morgan whistle-blowers are faring?
The proposed new gold import regulations for Chinese individuals have interesting implications for the gold price. In particular, the recommendation that individuals can bring in up 7 ozs of gold without customs accountability or reporting seems interesting.
The population of the world's most successful economy is around 1.35 billion people, and many of them will be children. However, gold is culturally and historically attractive to all Chinese people.
If we take just 1% of the total population and suggest that they might be well-disposed to to the metal and to the importing of 7 ozs of gold (and the Reuters article does not say how many times a year they could carry in gold) that suggests maybe 13.5 million people might be gold importers.
If they took home their full allowance of 7 ozs that would equal 94.5 million ozs of gold.
World annual mine production of new gold in 2012 was about 2700 tonnes ie 95.24 million ozs.
So, the new allowances would create a potential on conservative assumptions of imports about equal to new annual mine production.
No wonder the local gold dealer sounded unhappy.
Please check my arithmetic.
(Reuters) - China's central bank is planning to increase the number of firms allowed to import and export gold and will also ease restrictions on individual buyers of the precious metal, according to a draft policy document issued on Monday.
The proposed policy change could boost imports by China, which is expected to overtake India this year as the world's top gold consumer, and where gold normally trades at a premium to London spot prices.
"If it comes into effect, supply into China could increase and (local) prices could ease depending on demand," said a Hong Kong-based precious metals trader, who declined to be named.
The People's Bank of China said on its website (www.pbc.gov.cn) that the new rules would allow bank members of the Shanghai Gold Exchange, as well as gold producers with an annual output of more than 10 tonnes, to apply for import and export licenses.
Trade is currently restricted to just nine banks, while the exchange has 25 bank/financial institution members.
The central bank did not say when the new rules would take effect. In a statement accompanying the policy document, it said the draft rules were designed to "standardize and promote the development of the gold and gold product import and export business and protect the legal rights of practitioners."
All transactions will need to be registered with the exchange, and license holders have a responsibility to ensure that domestic supply and demand remain balanced, the draft document said.
The central bank would continue to maintain control on overall gold export volumes "in accordance with the requirements of state macroeconomic policy adjustments," it said.
"It is part of the new tide of financial deregulation," said Jiang Shu, a gold analyst with Industrial Bank in Shanghai. "In the long term, this is a natural process of relaxing gold import regulations."
A shortage of gold in China earlier this year when a steep fall in international prices sparked a surge in demand could have been a factor in easing the rules, he said.
In mid-April, spot gold posted its biggest two-day drop in 30 years, prompting a rush for gold jewellery, bars and coins in China and across the world.
Premiums paid for gold on the Shanghai Gold Exchange jumped to more than $30 an ounce over London spot prices, traders said.
Demand has since steadied and premiums have eased to around $7 an ounce.
Under the draft policy, individuals will also be allowed to bring up to 200 grams (seven ounces) of gold into China from overseas without having to report to customs or pay tax.
Chinese investors have traditionally looked to gold as a safe investment, while gold jewellery is popular for festivities such as weddings.
Members of the public have been invited to comment on the new policy and any objections need to be submitted before Oct. 29, the bank said.
China does not publish gold trade data, but according to figures released by the World Gold Association, the country's imports via Hong Kong reached a new record of 834.5 tonnes in 2012, up 94 percent on the year. (Reporting by David Stanway in Beijing and A. Ananthalakshmi in Singapore; Editing by Richard Pullin)
Looks like the CFTC has wimped out on Silver manipulation. I wonder if they'll do the same on Gold?
Continued FED money 'printing' by the USA to extend the disney fantasy named QE will strengthen demand for gold far far further than we have seen in just a few hours today.
I suspect gold will very quickly return to Backwardation and Andy Maguire's LBMA or Comex default fear will move ever nearer.
Imagine China's view on this aggressive US currency debasement and their holdings of US T bonds, which continue to lose value on the world markets. I feel the T10 yield will soon retrace its growth toward 3%
All IMHO.
'Bart Chilton continues: “And, as you know, I’m prohibited from actually saying much. That said, I will not let September go by without speaking out if the agency doesn’t do so.”'
The question is, who is prohibiting him, and why?
All hell will now break loose on this CTFC negligence and cover up plus JPM's involvement.
Little wonder JPM is now net long gold. They new that the jig was up and gold would soar on this once it gets out. It's now getting out.
Expect JPM to squeal that the treasury '....made them do it.'
Bravo to the whistleblowers. Heroes.
After slipping out of negative, where it had been since 8th July, and back to positive for three days, the 1 month GOFO has today returned to negative. Supply side strains refuse to recede.
It's so confusing...is it Fundy Mentals?
Is it JPM Organ...?
or is it Syria....?
If only Sparks were here to give us the real low-down....
'Earlier this week, Goldman Sachs Group Inc. (GS) flooded U.S. stock-options markets with erroneous orders, most of which were later cancelled. '
Just about sums up the creepy skites.
Nice to see Gold pulling ahead again but not altogether surprising with the East dumping T bonds and the US unemployment figures so moribund.
Bernanke really has been an absolute failure with QE and it will be good to see him go. I can't understand why he doesn't just resign now.
GOFO Rates. Having dropped out of backwardation for a few days, Friday saw the 6 month gold future contract go back into it.
Not only that, but the 1, 2 and 3 month gold futures, still in backwardation, saw their negative margins increase.
Supply side strain is increasing.
And what conclusions do you draw ?
The COT reports posted here last Saturday were quite downbeat and iirc the word 'bearish' was used.
I think Gold had only one down day this week and has looked in pretty good condition on most days.
I'm seriously thinking of regarding them, and Sparksy, as pretty reliable contrarian indicators.
New York Bob has been flying the flag here for Banro for what seems like forever.
Turd has spoken :
'Let's see if we can summarize things a bit:
GOFO rates in London have only been more negative for one time and for just one day in recorded history...at least as far back as I can look.
JPM suddenly decided to claim for themselves 82% of all July Comex silver deliveries and has so far taken 69% of all August gold.
Registered and Total gold stocks on The Comex are at the lowest level since at least 2005.
Oddly, JPM has "borrowed" gold from two other bullion banks each of the past two days.
The GLD has been raided for nearly a third of its inventory over the past seven months. All the while, the comparable silver ETF, the SLV, has actually seen its inventory increase.
Market expert Ted Butler shows that, over the past eight months, JPM has methodically flipped a 50,000 contract net short position to an 85,000 net long position.'
Following trillions of digital dollar printing in the USA and the resultant creation of the Charmin USD, we now have news that japan has a National Debt of the Yen equivalent of $10.48trillion USD. iT has thus become the 'White Cloud Yen.'
I just remembered that white is the colour of death in Japan, so, how very appropriate.
Watch out for likely news of sensible Japanese citizens joining the queues buying gold and silver to protect themselves from Abenomic harakiri.
Following yesterday's move on the gold 6 month GOFO, ie going into Backwardation at the LBMA, it becomes interesting to look at the 12 month GOFO.
At the beginning of January the margin was +0.48, today it is +0.128 with a significant narrowing taking place over the last week.
When the 1 month GOFO went into Bacwardadtion on 8th July, the negative margin was 0.065. Yesterday's negative margin was 0.1216.
Stresses and strains abound on the supply side.