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Cork, nice machine, the compass is a nice touch, all that matters is that you ride!
Already have Vance & Hines with Stage 1, got a dust cloth, just don't use it as much as I should.
I get that a lot...people I show a picture of my bike, are left speechless!
Nice bike, I've got a 2009 Street Glide in Black Pearl.
This is an excerpt from a January 2012 article he wrote. He referenced the phrase in red to another piece he authored in 2009 debunking GLD conspiracies, called "GLD Conspiracy Theories". After briefly perusing I came to the conclusion he honestly does not buy into the GLD conspiracy theories and makes some very good arguments debunking them in this piece. I would like to know what he now makes of the admissions of silver price rigging by several banks since then.
"Thanks to wacky conspiracy theorists never ceasing to irresponsibly spout utter nonsense about GLD, it still isn't as well understood as it ought to be by now. Holding a staggering 1259.6 metric tons of physical gold bullion in trust for its owners these days, worth a colossal $69.3b, GLD is a massive force in the gold market. Its price impact on gold since its birth 7 years ago in November 2004 has been enormous!"
GLD Conspiracy Theories link, long but, interesting:
http://www.zealllc.com/2009/gldcons.htm
So which do you think it is, ignorant, willingly being misled himself or intentionally misleading?
I guess I was not realizing GLD is the proxy the manipulators use to rig the price, so it is your premise that, he is either ignorant of the issue or intentionally misleading with this statement?
This dominance along with GLD's extreme transparency make it the best proxy for investment-capital flows into and out of gold. Every single trading day, GLD's managers release the total gold bullion this ETF is holding. This is done in extraordinary detail to placate anti-gold-ETF conspiracy theorists, down to the individual-gold-bar level including serial numbers and weights. This week's list was 1305 pages long!
Sam, I think you are over reacting a bit, I simply posted this as an alternative bullish case for gold in 2017, perhaps to those who do not subscribe to the manipulation scenarios. None of us know exactly how much price movement in gold truly is due to manipulation alone, perhaps only the larger short term moves are and not the longer tern trends, Adam does mention the gold futures market as being part of it though. GLD as he describes it could be the major mover of price longer term though, due to investor inflows/outflows from other markets for various reasons. I happen to like Adam's articles and have learned quite a lot from him, he is on our side and does have a lot of respect among gold bugs. I do agree that golds up trend will continue this year based on the reasons he lays out near the end of his article, manipulation will have an effect but, for the longer term price trend, GLD may very well be the main driver.
Big Gold Buying Coming
Adam Hamilton
Jan 13, 2017
Gold has hit the ground running in this young new year, a stark contrast to its brutal post-election selloff. Rather remarkably, these strong recent gains accrued despite literally zero buying from one of gold's most-important constituencies. The American stock investors who almost single-handedly fueled gold's strong bull market last year are still missing in action since the election. That means big gold buying is still coming.
All free-market prices, including gold's, ultimately result from the balance between popular supply and demand. When supply outweighs demand as evidenced by investment-capital outflows, gold is forced lower. That's exactly what happened after Trump's surprise win in early November. When investors flee gold for any reason, including chasing record-high stock markets, the resulting oversupply really hits prices.
When the votes started to get tallied on Election Day's evening, Trump pulled into a surprise lead in the biggest battleground state of Florida. Gold futures rocketed higher on that, soaring 4.8% to $1337 as the early results came in! But as the plummeting stock-market futures reversed sharply the next morning, that panic gold buying was quickly unwound. That kicked off investors' subsequent mass exodus from gold.
Over the last decade or so, gold ETFs have grown to dominate gold investment. Their soaring popularity is the direct result of their unparalleled efficiency. There is no cheaper, quicker, or easier way for stock traders to move capital into this unique asset to gain gold portfolio exposure. So gold investment has increasingly shifted from the traditional holding of physical bars and coins to owning gold-ETF shares.
The 800-pound gorilla of the gold-ETF world has always been the American GLD SPDR Gold Shares. As of the end of Q3'16, the latest data available from the World Gold Council, GLD's commanding lead among global gold ETFs is impregnable. GLD held 948.0 metric tons of gold bullion in trust for its shareholders, or a staggering 40.6% of the total holdings of the world's top-ten physically-backed gold ETFs!
This dominance along with GLD's extreme transparency make it the best proxy for investment-capital flows into and out of gold. Every single trading day, GLD's managers release the total gold bullion this ETF is holding. This is done in extraordinary detail to placate anti-gold-ETF conspiracy theorists, down to the individual-gold-bar level including serial numbers and weights. This week's list was 1305 pages long!
The day after the election, GLD's physical gold-bullion holdings were running 955.0 tonnes. But as the stock markets soared in the post-election Trumphoria surrounding hopes of lowering taxes and slashing regulations, investors started to flee gold. Gold is a unique asset that often moves counter to stock markets, making it an anti-stock trade. Thus gold investment demand collapses when stocks trade near record highs.
Investors simply feel no need to prudently diversify their stock-heavy portfolios with gold when the stock markets seem to do nothing but rally. So after Trump's win, stock investors soon began to dump GLD shares at far-faster rates than gold itself was being sold. This differential selling pressure forced GLD's managers to sell physical gold bullion to raise the necessary cash to sop up the excess GLD-share supply.
As a tracking ETF, GLD's mission is to mirror the gold price. But GLD shares have their own supply and demand totally independent from gold's, so GLD-share prices are always on the verge of decoupling from gold. The only way to maintain tracking is to shunt excess GLD-share supply and demand directly into physical gold itself. So GLD effectively acts as a conduit for stock-market capital to slosh into and out of gold.
Stock investors jettisoned GLD shares so fast in mid-November that this ETF's holdings fell sharply for 11 trading days in a row. Every day GLD-share selling outpaced gold selling, so every day this ETF had to buy back the excess shares to offset that heavy differential selling. The money came from selling gold bullion, resulting in daily draws in GLD's holdings. That short span saw GLD's holdings plunge by 7.3% or 70.0t!
While this extreme selling moderated in December, it still continued relentlessly. Gold was driven down to $1128 the day after the Fed hiked rates for the second time in 10.5 years. While that was expected, the Fed officials' rate-hike projections for 2017 were more hawkish than expected. That happened to mark the very bottom for gold, yet the heavy GLD selling persisted. That day GLD's holdings were at 842.3t.
As of the Wednesday data cutoff for this essay, gold has rebounded 5.6% since then. It has rallied back up to late-November levels. A strong bounce out of extreme bearishness was inevitable, as I wrote that very week. But what's wildly unexpected is since gold bottomed GLD's holdings have fallen another 4.4% or 37.3t to 805.0t. GLD still hasn't seen a single holdings build since the day after the election!
So gold somehow managed to rally sharply in recent weeks without any capital inflows from American stock investors. They not only weren't buying GLD shares, they continued to aggressively sell them as evidenced by a couple big GLD-holdings draw days so far in January. This situation is remarkable, as it implies the investment gold buying hasn't even started yet. That means big gold buying is still coming.
Some perspective is necessary to understand the supreme importance of GLD capital flows for gold's performance. This first chart looks at gold and GLD's holdings over the entire lifespan of this pioneering gold ETF. After its November 2004 birth, every subsequent year shows what happened to both its gold-bullion holdings and the gold price. Stock-market-capital flows via GLD have long dominated gold's fortunes.
While differential GLD-share buying and selling isn't the only force moving gold, it is certainly one of the two primary ones along with American gold-futures trading. In general gold rises and falls based on the capital inflows or outflows via GLD as evidenced by its builds and draws. Gold almost always rallies in years stock traders buy GLD shares faster than gold, and conversely falls in years where they sell GLD faster.
In 2005, 2006, 2007, 2008, 2009, and 2010 gold rallied majorly on strong GLD builds. When investors want to prudently expand their portfolio gold exposure through adding GLD shares, this ETF's resulting physical-gold-bullion buying propels gold's price higher. This makes sense, as the more capital bidding on any particular asset the faster its price will rise. That's simply supply and demand in action as expected.
2011 was the lone year since GLD's birth where the gold price disconnected from GLD's holdings. That year gold rallied another 10.2% despite a 2.0% GLD draw. But with a mere 26.2t move, that was also the least-volatile GLD-holdings year by far. So GLD's holdings were essentially unchanged, certainly not down materially. That relative cessation of differential GLD-share buying or selling allowed gold to decouple.
2012 again saw a solid GLD build, and gold rallied in lockstep. By that point, GLD had never suffered a sustained draw. Gold ETFs are a double-edged sword, just as easy to sell as they are to buy. In early 2013 the Fed's radically-unprecedented new open-ended third quantitative-easing campaign started to levitate the stock markets. So gold investment demand cratered as stocks seemingly did nothing but rally.
American stock investors dumped GLD shares with a vengeance that year, resulting in an epic 40.9% or 552.6t GLD draw! That wild unparalleled flood of gold-bullion supply spewed by GLD as it sold to raise the cash to buy back the excess shares offered hammered gold 27.9% lower. That made for gold's worst year since 1981, soon after a gold popular mania failed. That extreme gold-ETF selling kept feeding on itself.
The more stock investors dumped GLD shares, the more gold fell. The more gold fell, the more investors wanted to dump GLD shares. That ugly episode proved that gold ETFs and their easing of capital flows into and out of gold would amplify both bulls and bears. 2014 and 2015 saw gold continue to fall as the differential GLD-share selling continued. GLD's draws those years ran 89.2t and 66.6t, key reference points.
Despite the sharp post-election selloff driven by that Trumphoria stock rally, gold still advanced 8.5% last year. On Election Day it had been up 20.3% year-to-date! 2016 proved gold's first up year since 2012. And not coincidentally, 2016 was the first year that saw a GLD build since 2012. And that 179.8t of gold-bullion buying GLD had to do last year was actually the third-largest GLD-build year in this ETF's history.
So realize that stock-market capital flows into and out of gold via this dominant world-leading GLD gold ETF are critical. Gold rallies when stock investors are buying GLD shares faster than gold, leading to builds as that excess buying is shunted into gold. And gold falls when GLD shares are sold faster than gold, which forces this ETF to sell bullion to buy back its own shares. Gold only makes sense with this knowledge!
Unless you understand GLD's commanding role, you can't understand why gold has been where it's been or going where it's going. This next chart zooms in to the past couple years or so, and increases the analysis resolution to quarterly. The reason gold soared in Q1 and Q2 last year is because stock-market capital was flooding into GLD. And the reason gold collapsed in Q4 is because half of that capital fled.
Gold's lone up quarter in 2015 in Q1 was the result of a GLD build. The other three quarters of that year saw gold fall on increasing differential GLD-share selling. Interestingly gold bottomed the day after the Fed hiked rates for the first time in 9.5 years in December 2015, at a 6.1-year secular low. Exactly a year later last month, gold again bottomed the day after the next Fed rate hike. It's irrational to fear Fed rate hikes!
Gold then skyrocketed 16.1% higher in Q1'16 on a monstrous 27.5% or 176.9t build in GLD's holdings. Gold investment demand quickly shifted from deeply out of favor to back in favor for one simple reason. The lofty Fed-goosed stock markets were rolling over into a correction-grade selloff as 2016 dawned. As the anti-stock trade, gold investment demand soars when stock markets materially weaken and stoke fear.
Gold's first new bull market since 2011 was overwhelmingly driven not just by gold ETFs, but specifically by GLD alone. According to the definitive arbiter of gold supply-and-demand measurement, the World Gold Council, total global gold demand climbed 219.4t year-over-year in Q1'16. Thus GLD's 176.9t build accounted for a staggering 80.6% of that jump! Traditional bar-and-coin demand merely rose 0.7% YoY.
So if American stock investors hadn't flooded back into GLD in Q1'16 as US stock markets rolled over, there never would've been a new gold bull! Love it or hate it, the hard reality is American stock-market capital flows into and out of gold via GLD now dominate this metal's price behavior. That became even more apparent in Q2'16, when gold rallied another 7.4% on another huge 16.0% or 130.8t GLD build.
Per the WGC, overall global gold demand climbed 139.8t YoY that quarter. That means GLD alone was responsible for a mind-boggling 93.6% of the world total! Again bar-and-coin demand was dead flat, the whole gold story was differential GLD-share buying. Indeed in Q3 gold stalled because that differential GLD-share buying ceased. Gold drifted 0.4% lower in Q3'16 on a trivial 0.2% or 2.1t GLD draw that quarter.
So realize that pretty much everything that happened to gold last year before the election was the result of stock-market capital flowing into and out of gold via the GLD conduit. Thus it shouldn't be a surprise that the brutal gold selloff after the election was driven by extreme differential GLD-share selling. On Election Day, GLD's holdings were actually only just 3.4% under their bull-market high seen back in early July.
That subsequent extraordinary 11-trading-day 7.3% GLD draw was driven by US stock markets surging to new all-time record highs per the benchmark S&P 500. Stock investors were so enthralled by Trump's promises of lower taxes and less regulation that they lapsed into euphoria. Just as in 2013 to 2015, they figured why bother owning counter-moving gold if stocks are going to do nothing but rally indefinitely?
The resulting extreme differential GLD-share selling ultimately drove a massive 13.3% or 125.8t Q4'16 draw! Those stock-capital outflows were nearly equivalent to Q2'16's 130.8t inflows. But gold didn't bottom at Q2 levels since futures speculators joined the stock investors in aggressively dumping gold. Q4's enormous 125.8t GLD draw dwarfs those 89.2t and 66.6t draws seen in the full years of 2014 and 2015.
With so much capital fleeing gold, forcing GLD to spew so much gold bullion into the market to buy back its excess shares offered, it shouldn't be surprising gold cratered to a 12.7% loss in Q4. That was one of gold's worst quarters ever, driven by one of GLD's biggest draw quarters ever. Gold prices are driven at the margin by investment capital flows, and there is no bigger pool of gold investment capital than GLD investors'.
Given GLD's ironclad dominance over gold prices, the disconnect between gold and GLD holdings in recent weeks is utterly stunning. Every day the first piece of data I check is what happened in GLD's holdings the day before. They aren't reported until evenings well after the markets close. So ever since gold started to rally in late December, I've been looking for GLD builds to resume. Yet they still haven't.
As of Wednesday, GLD had not seen a single build in 42 trading days since the day after the election! That now rivals a 42-trading-day span in mid-2013 as the longest in history without any GLD builds. If you'd told me a month ago that gold could mount a nearly-month-long 5.6% rally despite not only zero GLD builds but a cumulative 4.4% draw, I would've laughed. That's wildly improbable based on modern history.
Yet here we are. Gold's bull market of 2016 is resuming after this metal's 17.3% plunge mostly since the election, which didn't breach the 20% new-bear threshold. And American stock investors not only didn't drive it, but they are actively fighting it. That means the gold investment buying hasn't even started yet from the only group of global investors who really matter! Big gold buying is still coming via GLD shares.
American stock investors totally ignored gold in late 2015 until the US stock markets retreated decisively enough to crack the complacency bubble driven by record highs. GLD's holdings fell to a 7.3-year secular low the day after the Fed's first rate hike in nearly a decade in December 2015 as stock markets remained near records. It wasn't until the stock markets started selling off that gold investment demand reignited.
Right after that December-2015 rate hike, the S&P 500 dropped 1.5% and 1.8% on back-to-back trading days. That relatively-minor selloff was enough to convince hyper-complacent stock investors that maybe owning a little gold to diversify their stock-heavy portfolios wasn't a bad idea. January 2016 would see a lot more major S&P 500 down days with losses of 1.5%, 1.3%, 2.4%, 2.5%, 2.2%, and 1.6% as selling accelerated.
That heavy stock-market selling ultimately fueling a correction-grade 13.3% S&P 500 selloff was exactly what triggered last year's new gold bull. And once that investment gold buying got underway, it took on a life of its own as investors love to chase winners. Even though the S&P 500 bottomed decisively for the year in mid-February, gold kept powering dramatically higher until early July on continued heavy GLD buying.
This precedent is exceedingly bullish for gold today. As I explained in depth in an essay at the very end of 2016, a major stock bear still looms. The US stock markets were radically overvalued before that crazy Trumphoria rally, which blasted them up to formal bubble valuations! Corporate earnings are simply far too low to support the high prevailing stock prices, which are purely the product of greed and euphoria.
Even if Trump proves a miracle worker, the much-anticipated lower tax rates and regulation-slashing is going to take some time to implement. I can't imagine anything big happening on those fronts before late 2017 or early 2018 at best. In the meantime, the stock markets are long overdue for at least a 10%+ correction and more likely a 20%+ new bear. That will once again revive major gold investment demand.
If a 13% stock correction ignited a 30% gold bull in the first half of 2016, imagine what a real bear would do for gold prices. American stock investors are radically underinvested in gold today, with essentially zero portfolio exposure. So as stocks inevitably sell off as the impossible Trumphoria expectations inevitably lead to deep disappointment, there is vast room for American stock investors to diversify back into gold.
While gold has indeed looked impressive in recent weeks, we haven't seen anything yet compared to what will happen when differential GLD-share buying explodes again. Gold's upside in early 2017 truly has the potential to even exceed early 2016's strong gains! The stock markets are far more precarious now than a year ago, and the more downside they suffer the more investors will shift capital back into gold.
This coming major new upleg in this young gold bull can certainly be played with GLD or call options on it. But the gains in the gold miners' stocks will dwarf the gains in gold, since their profits growth greatly leverages gold's upside. As I discussed in depth last week, we are already seeing that. Over that recent less-than-a-month span where gold rallied 5.6%, the leading gold-stock index already surged 21.0% higher!
At Zeal we aggressively bought and recommended great gold stocks and silver stocks to our newsletter subscribers back in December when everyone remained hyper-bearish. Our unrealized gains on these brand-new trades are already running as high as +50% this week! If you too want to thrive in these markets, it is essential to stay informed all the time. Wealth is multiplied by first buying low when few others will.
We've been in the contrarian-research business helping investors and speculators thrive for over 17 years now. Since 2001 we've recommended and realized 906 stock trades in real-time to our newsletter subscribers. Their average annualized realized gains including all losers are now running way up at +22.0%! You can put our expertise to work for you through our popular weekly and monthly newsletters. They draw on our vast experience, knowledge, wisdom, and ongoing research to explain what's going on in the markets, why, and how to trade them with specific stocks. Subscribe today for just $10 per issue!
The bottom line is big gold buying is still coming. American stock investors, the driving force behind all of gold's major moves for years, haven't even started returning to gold yet. The leading GLD gold ETF hasn't seen a single build since the day after the election, and has continued to suffer major draws in early 2017. Gold's sharp rebound out of its post-election lows despite a GLD-selling headwind is remarkable.
Just as a year ago, all it will take to rekindle gold demand from American stock investors is a correction-grade stock-market selloff. And one is way overdue and increasingly likely thanks to all the extreme distortions of valuations and sentiment the Trumphoria rally spawned. As stock complacency cracks, American stock investors will rush back to gold to diversify their portfolios and thus catapult it much higher.
Jan 13, 2017
Adam Hamilton, CPA
I hear ya Sam, I also ride, remember this, pretty powerful stuff...
That's okay Dip, not worried about .04 cents.
From Oct 6th SA article...
Hedge Funds taking big positions:
Hedge Funds are not known for taking positions in low-cap stocks, especially those trading below $1. We are used to seeing them position themselves with large cap stocks such as Amazon and Microsoft, but the prospects for Golden Star are such that even the big boys are taking notice. At the end of the 3rd quarter of 2016, a total of 9 hedge funds had taken significant positions in GSS stock, and that was more than double the previous quarter's number of 4 funds. According to the hedge fund database at Insider Monkey, Renaissance Technologies, which is one of the largest hedge funds in the world, holds the top position in Golden Star Resources, (GSS-$.85). with $9.2 million in shares. [URL for Inside Monkey article: http://tinyurl.com/jpk...]*
BIKERS FOR TRUMP Vow to Defend Trump Inauguration Forming a Wall of Protection
Let's see them try something...see what happens...
http://dailywesterner.com/news/2017-01-13/bikers-for-trump-vow-to-defend-trump-inauguration-forming-a-wall-of-protection/
What now Einstein?
D.C. National Guard Chief Fired Days Before Trump Inauguration: "The Timing Is Extremely Unusual"
http://www.zerohedge.com/news/2017-01-13/dc-national-guard-chief-fired-days-trump-inauguration-timing-extremely-unusual
Total debt as of last Q
Balance Sheet
Total Cash (mrq) 9.49M
Total Cash Per Share (mrq) 0.03
Total Debt (mrq) 303.15M
Total Debt/Equity (mrq) 78.34
Current Ratio (mrq) 0.31
Book Value Per Share (mrq) 1.29
http://finance.yahoo.com/quote/BAA/key-statistics?p=BAA
Not to mention BAA has over 300M in debt that they never pay down, instead continue to refinance over and over, located in high risk Democratic Republic of Congo, plus de-listing or reverse split are real possibilities. Sounds like a real solid pick from myopinion, like they say opinions are like a***h***, everybody's got one.
"They'll Regret It" - Trader Warns Unquestioned "Trumpflation" Dogma Will Be Tested
The vast majority of market participants are showing a surprising lack of flexibility and adaptability when it comes to the Trumpflation trade. As Bloomberg's Mark Cudmore warns, they may regret it.
The dollar can still correct a chunk more without 2017 being a write off. The rush to rapidly buy the smallest dip, without proper consideration for the risks, is fraught with danger.
In the last 24 hours, I’ve been overwhelmed by the number of analyst notes recommending that the correction in the Trump victory-related themes – stronger dollar and higher yields as the most prominent ones -- has already gone too far and provides a great “opportunity” to add to positions.
They may be correct, but the incredible conviction and seeming inability to add some nuance to the view is worrying. It’s verging on religious fervor, and shows a level of defensiveness that normally only comes from someone on the back-foot.
The Bloomberg Dollar Spot Index remains more than 5% above where it closed on election day. It can still fall another 2%, and remain comfortably in a medium-term uptrend.
Similarly, U.S. 10-year Treasury yields remain more than 50 basis points higher and can drop another 20 basis points without destroying a 2017 theme of rising rates.
The point is that there is room for a larger correction now without derailing full-year Trumpflation trades. But it seems the market doesn’t want to countenance such a concept.
This single-mindedness is surprising given that there’s been little this week to boost the fundamental argument for a stronger dollar accompanied by higher rates. Trump’s press conference didn’t outline an expedited stimulus plan. In fact it’s arguable that it implied a massive fiscal jolt may be less probable.
The closes this week will be important technically. It’ll be an easier 2017 for traders if the consensus is correct in January. But to me, a simple risk-reward analysis suggests that the rest of this month should be spent more focused on the downside risks.
http://www.zerohedge.com/news/2017-01-13/theyll-regret-it-trader-warns-unquestioned-trumpflation-dogma-will-be-tested
Yeah, then by chance if one happens to hit, he/she can say "see I called that one", look at me! Absolutely no skin in the game.
Hi Cork, I hope all is well. I don't know if you had a chance to read another Avery Goodman piece I posted yesterday #31404...Well worth the read.
Just another mindless pumper.
Well, it ran pretty relentlessly hard to the downside with no correction for much longer and farther than this, everyone is always in such a hurry to predict corrections on the short rises but, not the extended drops.
It amazes me that a massive class action lawsuit hasn't been filed against these SOB's yet, especially now that the manipulation has been admitted to by multiple players and fines have been levied. Really just beyond belief.
Did you try putting your pointer over a year to start with and dragging it to the right as the selected area highlights, then let go and it will change your range and slope?
I lost my ass back in 2010 trading VIX calls and SPX puts in the manipulated markets that were not allowed to drop, I to have a FOMO problem. I'm all in mining stocks now, without much dry powder to follow your lead. I'm pretty much long with 300k shares in each of my major miners, too many shares to flip back and forth. There is also a Cap-Gain tax loop hole that states: If you have owned a stock for more than a year and are below the 15% tax bracket for that year, you can sell and the Cap-Gain tax is 0%. If I flip to buy shares back cheaper, I have to start the clock over.
Yes, I am up nicely so far. They are currently trying to slam gold...I think they will be as unsuccessful as they were yesterday.
Gold at $1200 with these stats, what's wrong with this picture???
1.) Student Loan Debt - 1.3 Trillion
2.) America's debt - UP over 100% in 8 years,
3.) America's unfunded liabilities - 150 Trillion plus and climbing rapidly
4.) Corporate Debt - Up over 100% in 8 years.
5.) Bank Derivative Expsosure - Up over 300% in 8 years.
6.) Crime and Violence - Out of Control (Billions in Lost Property, Lives)
7.) America's foreign policy - America now pays ransom to terrorist states like Iran (1,700,000,000)
8.) State and Municiple Pension Shortfall - 6 Trillion plus
9.) Fed Balance Sheet - At 4.5 Trillion - Up Over 400% in 8 years
10.) US Government Cannot Account for 6.5 Trillion in its books.
Trump Bump Dumps - Confidence Collapses As Inauguration Looms
http://www.zerohedge.com/news/2017-01-12/trump-bump-dumps-confidence-collapses-inauguration-looms
Don’t look now! Gold is crushing the stock market in 2017
Published: Jan 12, 2017 9:42 a.m. ET
From stock shill MarketWatch no less!
Gold is up 4.3% in the early part of 2017
Perhaps one of the clearest signs that a rally inspired by President-elect Donald Trump is starting to stall is shiny and yellow and is outperforming other assets by a healthy margin.
Gold GCG7, +0.62% is trading near $1,200 an ounce and are up 4.3% so far in 2017, compared with a tepid gain of 1% for the Dow Jones Industrial Average DJIA, -0.59% and a 1.6% advance by the S&P 500 index SPX, -0.48% Not even the standout Nasdaq Composite Index COMP, -0.63% which racked up its fifth straight record close on Wednesday for a year-to-date climb of 3.4%, has managed to outstrip gold’s returns.
Of course, the market is only about eight trading days into 2017 and things could pivot quickly. After all, stocks began 2016 with the worst start to a new year in history before regaining their footing and scooting to new records.
But what appears to be a stall out for equities—though not an outright reversal—highlights investors’ apparent reassessment of some of the factors that had accelerated a rally in equities after Trump won the U.S. presidential election on Nov. 8. In theory, the prospect of economic growth and rising inflation are bullish for the dollar, stocks, but bad news for assets like gold, which doesn’t bear a yield and is priced in dollars.
“I am not surprised by the reversal we have seen in relative performance between gold and US stocks so far in 2017. The big rally at the end of last year was partly driven by speculation on what Donald Trump could do for the economy as president and part due to a scramble by fund managers to get cash off the sidelines and into the market by year-end which is now over,” said Colin Cieszynski, chief market strategist at CMC Markets. “It also seemed to me like the Dow was getting drawn toward 20,000 as though it was caught in a tractor beam,” he said.
But, the ebullience that lifted stocks to fresh highs, bolstered by the notion of fiscal stimulus, tax cuts and a loosening of regulations, has been replaced by a desire for details and doubts that the president-elect can deliver the goods.
Those factors may be offering gold room to run higher, at least in the near term.
A retreat by the U.S. dollar, which has steadily pulled back from a more-than 14-year peak, as measured by the ICE U.S. Dollar Index DXY, -0.65% and lower moves for benchmark Treasury yields, with the 10-year Treasury note TMUBMUSD10Y, -2.25% at 2.33% from a high of 2.61% in mid December, underscoring a slowdown in a selloff for government bonds. Yields fall as bond prices climb.
Recent buying in gold and maybe bonds can be attributed to minutes from the Federal Reserve that raised questions about the pace of interest-rate hikes in 2017. The market action suggests
It may be way too early to call the Trump rally over. After all, stocks are sill boasting gains and the Dow is on track to hit the 20,000 milestone, but it appears that there are some signs that the notion of Trump being a slam dunk for stocks isn’t a certainty.
THE MOST INFLUENTIAL PEOPLE IN THE TRUMP ADMINISTRATION TURN OUT TO BE GOLD STANDARD FANS
By Avery B. Goodman
Vice President-elect Michael Pence is currently the most powerful single political influence on President-elect Trump. Among other things, he is in charge of the transition team. He will also be in charge, after the inauguration, with dealing with Congress. For leftists, hostile to gold, that is a problem. However, for those of us who believe that the only way to solve our long-term economic problems is by a return to honest money, it is a godsend.
The editor of the New York Sun realized this quite a while ago. He wrote, back in July, about the wise choice of then-Governor Mike Pence as a running mate:
“Donald Trump’s choice of Mike Pence for vice president would — if it is confirmed tomorrow — be a promising pick for those of us who see a restoration of sound money as the essential precondition for returning America’s economy to a trajectory of jobs and growth…“
Why did the paper write this? Left-wing economists and politicians have a long standing case of aurophobia. They hate gold because it inhibits both corporatist and government control over the economy. Don’t bother telling them that the dishonest system of “debt money” enslaves the very people they claim to protect. Don’t bother pointing out that debt based money favors the accumulation of capital by a narrow portion of society who receive the money first. I am, of course, talking about the bankers on Wall Street. Don’t bother warning them that the constant inflation, inherent in debt money, will eventually destroy the hopes, dreams and savings of the middle class. They don’t want to listen.
In contrast, Vice President Elect Mike Pence views gold from the standpoint of a person who does not want the large corporations and government to have complete and detailed control over the economy. His view, therefore, is diametrically opposite. He believes that gold is important to the system because it provides a base against which other things can be measured. In a speech at the Detroit Economic Club in November 2010, he said, and I quote:
“…My dear friend, the late Jack Kemp, probably would have urged me to adopt the gold standard, right here and now in Detroit. Robert Zoellick, the president of the World Bank, encouraged that we rethink the international currency system including the role of gold, and I agree. I think the time has come to have a debate over gold, and the proper role it should play in our nations monetary affairs. A pro-growth agenda begins with sound monetary policy…”
President-Elect Trump, himself, can be said to be a bit of a gold bug. He bought the yellow metal in the 1970s at about $185 per ounce, and sold it at $780. After that experience, the taste for gold never left him. During the campaign, he stated:
“Bringing back the gold standard would be very hard to do, but boy would it be wonderful, because we’d have a standard on which to base our money.”
In contrast, starting with a not-so-secret executive order, signed on April 11, 2013, President Obama seems to have authorized a raid on American gold reserves to bolster his administration’s claims of economic success. The banksters’ scheme was designed to control the chirping “canary in the coal mine” (rising gold prices) because it was singing too loudly of failed economic policies. It was also designed to put a lot of private profits into banker’s pockets. Thankfully, things are going to be different.
The new administration is looking very gold-friendly. Neither Pence nor Trump have outright stated that they intend to restore the gold standard, although Pence did hint at it. Does that mean it’s going to happen? Probably not. The stupidity of the Obama administration, in giving license to the banksters to drain away America’s gold reserves, has made it nearly impossible. The only way would be to institute an secret program to buy back the gold. Issuing new dollars in exchange for gold would increase the money supply, a form of economic stimulus, so it might fit into the new President’s plans.
It’s not only the President and Vice President who like the gold standard. Dr. Judy Shelton was one of the two economists named to Donald Trump’s economic advisory team in August. She is now a member of the President-Elect’s transition team, and is a very strong gold standard supporter. Shelton first rose to prominence among economists when she predicted the economic collapse of the Soviet Union in 1989, two years before it happened. She says that many of the same issues are now appearing in the American banking system. Her answer: reestablish the gold standard!
In an article in Fortune magazine, Dr. Shelton stated, and I quote:
In terms of gold being involved, some people may think of that as a throwback, but I see it as a sophisticated, forward-looking approach because gold is neutral and it’s universal.
The pre-election statements of President and Vice President, as well as the opinions of their most loyal advisors, answer the question many worry about. Some worry that “too many” people associated with Goldman Sachs are being appointed to positions in the Trump administration. Perhaps. However, that does not mean that banksters will be given free reign to continue doing what banksters have done in the past. In this case, banksters will not be allowed to continue pissing away America’s precious gold reserves. Top Trump administration people will surely see the schemes for what they are — personal enrichment programs for the banksters that support them.
The “Gold Reserve Act”, passed by Congress in 1934, requires the consent of the President before the Secretary of the Treasury can authorize tapping into America’s gold reserve. That’s what the meeting with President Obama and the CEOs of the biggest gold dealing banks, on April 11, 2013, was all about. It took place one day before the biggest attack on gold prices ever undertaken. The fact that the meeting took place at all, however, indicates that even left-wing Barack Obama was questioning the wisdom of raiding America’s gold.
Donald Trump appreciated the money that Steven Mnuchin, his only well-connected Wall Street fund raiser, brought in during the Presidential campaign. It is natural to reward someone after something like that, and that is why Mnuchin is now going to be US Treasury Secretary. But, even if he wanted to, which is not at all clear, it is very unlikely that Mnuchin would be able to convince President Trump to leave Obama’s gold reserve blasting executive order intact. Remember, Mr. Trump took issue with the idea of spending $4 billion worth of easily printable paper dollars on several new “Air Force One” 747s. Do you think he’s going to be convinced by anyone to piss away gold reserves, which are very difficult to replace?
The decline in gold prices, during November and December has been designed to allow manipulators with large, long-standing short gold positions, to shell-shock markets, facilitating an orderly escape with minimal damage. The hyping of India’s tax law changes was part of that, and is part of the strategy used to demoralize long speculators. The truth, however, is that even if India stopped importing gold, entirely, given the current excess of demand over supply, demand would still far exceed mining and scrap refining supplies. With that gap unfilled, the price must rise substantially. For more information about the true supply/demand situation for gold, see this article.
Going forward, the unplugged gap between supply and demand will be closed by the real market, not from further donations from the American treasury. Prices will rise once the banksters see the prospective cutoff from access to America’s gold reserves come too close for comfort. At that point, which will probably come in late December to early January, they will spin off whatever small short position they still have left, at any price they must pay to do it, and the upward movement will begin in earnest.
8 thoughts on “THE MOST INFLUENTIAL PEOPLE IN THE TRUMP ADMINISTRATION TURN OUT TO BE GOLD STANDARD FANS”
john says:
December 16, 2016 at 3:08 pm
I am curious to know what executive order Obama signed on April 11, 2013 giving the bankers permission to raid the US gold reserve? I don’t remember reading about this. The Fed and top bankers did have an unannounced meeting with Obama at the White House some months back and we didn’t know about it until after the fact and we don’t know what was discussed at that meeting. Could you please provide information about the executive order allowing banks to steal US gold? Thank you.
averybgo-admin says:
December 17, 2016 at 2:36 pm
See answer to Veracity.
It is a deduction from the circumstantial evidence. As to “stealing” the gold, it would not be characterized that way. The banks legally would have “stolen” the gold as much as they “stole” the bailout money.
It could be listed as a “loan”. Did you know, for example, that the Fed’s primary dealers ran a loan balance amounting to hundreds of billions of dollars between 2001 and 2007. These were supposedly “overnight” loans, but every day they came due, they were replaced by the Fed with an even bigger “overnight” balance, until a 1 day loan (priced at almost zero interest even then) ended up as a nearly 7 year loan. That was an electronic money balance. The amount due was eventually repaid, but not until the Fed began its “QE” (money printing) program. The “loans” here, however, would be gold loans. Since the Fed cannot print gold, one would assume that they will never be repaid. I strongly suspect that, as with the prior “overnight” loans I just discussed earlier, the gold loans are probably also “non-recourse”. That means that, legally speaking, the US Treasury has no right to get repaid in gold, but can only enforce against a default by seizing the posted collateral (which, most likely, consists solely of US government bonds).
It could also be characterized as a US government led market operation to defend economic stability, with the banks simply acting as agents, and all liability beginning and ending with the government. I should note that, when GATA did a formal Freedom of Information Act Request to the US Treasury and the US Federal Reserve, requesting details about the “gold swaps”, mentioned in various transcripts, the government did not deny their existence, but, rather, claimed privilege saying that the information sought was secret confidential material and that release would jeopardize important operations.
Bottom line: US Gold Reserves CANNOT be swapped or obligated in any other way, without resort to the authority Congress vested in the President pursuant to the Gold Reserve Act of 1934. The Act REQUIRES consent of the President of the United States. Therefore, the gold swaps are authorized by a secret executive order. Case closed.
Veracity says:
December 17, 2016 at 5:48 am
Thanks for a great article, very informative as usual.
We all know that on 11th April 2013 the 15 Banksters from the Financial Services Forum met at the WH but very little to no details are known about what was discussed at this meeting.
We can, however, deduct from the massive gold and silver raid which followed the next day, within hours, that some kind of green light was given to the Bankster Crims to do whatever it takes to save their filthy butts form certain default/bankruptcy on the Comex, as they were apparently very close to defaulting in their gold / silver deliveries.
This can be gleaned from the data sets and backwardation numbers etc.
You refer in your article to a secret Executive Order Obama seemingly signed on that day; do you have anything substantiating this or is it more of a projection/deduction you make?
One would have thought that all such orders must be public, but then again this stooge has flouted every law and constitutional rules on the books!
averybgo-admin says:
December 17, 2016 at 2:16 pm
It is a projection/deduction. I would note that some executive orders that “impact national security” need not be made public. Not that such a bogus claim is legit. Nevertheless, secrecy could be maintained by a claim that disclosure would seriously harm the economic security of the United States. Generally, the government does not appear obligated to disclose orders relating to the Gold Reserve Act of 1934, disgusting though that might be to you and me.
We know there are gold swaps because mention of them exists in a number of transcripts. When GATA recently demanded details of the swaps, pursuant to the Freedom of Information Act, the US Treasury and Federal Reserve refused to provide them, claiming that the information was privileged and secret and would harm the USA and/or commercial counterparties and/or other governments, if disclosed.
US Gold Reserves CANNOT be swapped or obligated except under authority Congress vested in the President pursuant to the Gold Reserve Act of 1934. The Act REQUIRES consent of the President of the United States. Therefore, the gold swaps are authorized by a secret executive order. I believe the circumstantial evidence shows such an executive order, quite possibly a supplemental one, that adds to another pre-existing order, was signed on April 11, 2013, rather than any other day.
Veracity says:
December 19, 2016 at 3:23 am
Thanks, this is sound reasoning and deduction I wholeheartedly agree with!
However there are many puzzling aspects to this whole conspiracy at the highest level, and yes this is a conspiracy.
For one, seemingly, or according to persistent rumours, under the Clinton/Summer/Rubin/Greenspan reign of Fraud and Crime, the 8,000 tonne US gold hoard has already been either, at least partially, sold, hypothecated, leased or compromised in some other nefarious ways.
According to one source there is even waybill evidence supporting the accusation that this hoard has been replaced with gold-plated tungsten bars…. who knows if it is true but there are other claims of trucks coming and going to Fort Knox in surreptitious and unusual activity, while locals ascertain that there is no gold left in Fort Knox.
And we know that the NY Fed was unable to deliver even the minutest amount of gold to the Germans!
So what exactly was agreed on the 11th April 2013?
The theft of more gold form other sources, e.g. Saudi and other Arab Gold or what was left at the NY Fed?
The theft of gold from the so called Global Collateral Accounts, i.e. the gold the US stole in the Philippines from the Japs who stole it from across Asia in their tyrannical rampage of loot and plunder from 1895 onwards? But is this gold still stored somewhere or has it long since been used to fund all the covert ops of regime change, black ops, and for arming every terrorist org the CIA/USG finds convenient to support?
Or simply a nod and a wink from their puppet stooge to close both eyes and go for another game of golf at their expense and another $100m into his secret account at JPM?
The CFTC has already been in their pocket since the day Brooklsey Born was rolled and prevented from regulating the very markets she was appointed to regulate in an act of the banksters’ puppet whore Congress.
The gold must come from somewhere and I venture a guess that the NY Fed is empty, Fort Knox is empty, all Vaults in Zurich, Frankfurt, the City are all empty or very close to empty and that the game is about to end abruptly!
Maybe this was their desperate last hurrah smash before the CME/Comex/LBMA really start to default ………..
Rusty Brown says:
December 18, 2016 at 8:01 pm
“…banksters will be given free reign…” I suspect that should be “free rein”; “reign” is what Elizabeth II does as Queen of Canada.
averybgo-admin says:
December 18, 2016 at 8:49 pm
Actually, the phrase can be spelled either way and both are correct. See, Cambridge Dictionary of American Idioms Copyright © Cambridge University Press 2003. Although the issue is not mentioned, it seems that the two methods of spelling may each be subliminally different. Using “reign” seems most appropriate here, because we are not talking about merely guiding a horse, but guiding a country, which is what Kings and Presidents do. Thanks for the input.
Charles Savoie says:
December 19, 2016 at 1:16 am
As of September 2009 GATA got proof the Fed has gold swap arrangements with foreign central banks http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf
However, in March 2007 I released “Paper Money Mobster Speaks” at Silver Investor and elsewhere. It was about Alfred Hayes of the Federal Reserve Bank of New York who left to run Morgan Stanley International. Using a widely available publication, Vital Speeches of the Day, I found Hayes admitted in 1963 and again in 1975 about central bank gold swaps. The info was already in the public record. I found it 2 and a half years before GATA’s announcement without need to inquire to the Treasury, and am still waiting for the mainstream metals community to recognize that The Pilgrims Society in New York, and its twin in London, is the originating point for gold and silver suppression. I have documented this matter extensively as in “Who Controls the Gold Stealing New York Fed Bank” at the start page of http://www.silverstealers.net
Here are remarks Pilgrims member Hayes made I noticed in Vital Speeches of the Day (SMU Fondren Library)—
“I HAVE HEARD OUR SWAPS CRITICIZED AS COVER UPS.” —Alfred Hayes, lecture at Economic Club of New York, April 22, 1963
“I AM PARTICULARLY PROUD OF THE FEDERAL RESERVE SWAP NETWORK, IN THE DEVELOPMENT OF WHICH I WAS INVOLVED FROM ITS INCEPTION, LINKING THE FEDERAL RESERVE AND 14 OTHER CENTRAL BANKS AND THE BANK FOR INTERNATIONAL SETTLEMENTS. GOLD HAS LONG BEEN VIEWED BY MANY AS A BARBAROUS RELIC AND DEMONETIZING IT AND PHASING IT OUT OF THE SYSTEM COMPLETELY SEEMS TO HAVE A GOOD DEAL OF APPEAL IN SOME QUARTERS.” —Alfred Hayes, speech at International Monetary Fund, August 31, 1975
As I reflect, I will consider it a miracle if this post is allowed to stand due to the favoritism arbitrarily shown to GATA, who refuses to recognize the source of the metals suppression is this Crown sponsored group. Zero Hedge, Infowars and most metals long and pro-freedom sites all refuse any coverage, and I make no income doing this. Despite having the top attorneys on Wall Street, the Society has not sent me any process server. Discovery process would include access to current rosters, and only the members get rosters.
I have done the labors of Hercules in research and most sites actually ban me from coverage. No one has challenged the presentations. One site actually protected Jeffrey Christian from public scrutiny just before an annual Silver Summit by refusing coverage of “Jonathan Frid Vomits on Silver.”
Naturally a request on details of gold swaps would yield no result. Trump’s associations may prove more meaningful than his words. He was pals with Pilgrims member Brooke Astor, widow of Pilgrims member Vincent Astor, whose ancestor John J. Astor was the main domestic power in the gold and silver stealing second U.S. Bank. After a cruise on Vincent’s 264 foot yacht in February 1933, one of FDR’s first actions in President was to seize gold from Americans, as the goal of The Pilgrims Society is “the seizure of the wealth necessary” (Review of Reviews, May 1902, page 557.)
http://averybgoodman.com/myblog/2016/12/09/the-most-influential-person-in-the-trump-administration-turns-out-to-be-gold-standard-fan/
T, I spend time over on Stockhouse, Yahoo and Stocktwits as well as here, now that things are starting to move again, I'm sure we'll be chatting a bit more.
I could be wrong in my debt assessment but, I'm pretty sure their MM's can put the price anywhere they need to.
CD
Geo, GSS is on fire, did you see their 2016 production beat/2017 production guidance PR today? 2017 production guidance will increase by 31-44% to 255,000-280,000oz ,GSS up 16.3% in two days!
T, It is the fact that it is "convertible" debt, convertible to .13 cents per share, if the stock was at .13 right now, we would be continuously diluted on a daily basis and pps wouldn't rise much above .13 anyways. I think the company is holding it down so that dilution is held to a minimum until the debt can be refinanced to more conventional, non-convertible debt.
CD
Another big day for GSS, +16.3% in two days with plenty more upside, IMO now officially a growth stock after today's PR.
With these wild 150 basis point whip saws in the dollar, we are talking about Trillions in gains and losses in one day, historically unprecedented, and just amazing to watch...Totally unsustainable.
$1195 Now that's more like it!
Dollar is still tanking to levels seen at 4:00 AM, gold should be at $1190 again at least, this blatant illegal manipulation is really starting to piss me off again.
Edge, see my earlier post #31354.
Thanks Sam, I'll mull them over. Gold right back up and the dollar right back down as anticipated.