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Nice timing Sam, that is the part of options trading that keeps me on the sidelines.
Teranga Gold Beats 2016 Production Guidance
TORONTO, ONTARIO--(Marketwired - Jan 5, 2017) - Teranga Gold Corporation ("Teranga" or the "Company") (TGZ.AX) (TGZ.AX) is pleased to announce 2016 gold production of 216,735 ounces, exceeding the high end of its 2016 production guidance range of 200,000 to 215,000 ounces.
"Strong operational performance by our employees who worked tirelessly throughout the year enabled Teranga to achieve record production in 2016," stated Richard Young, President and Chief Executive Officer. "Our processing plant operated at record levels this year, following the early commissioning of the mill optimization project that is expected to increase our mill capacity by up to 15% per annum."
Teranga also announced today that it will release its operating results for the three and twelve months ended December 31, 2016 on Monday, January 30, 2017 at approximately 6:00 a.m. ET. A conference call and audio webcast will be held later that morning at 8:30 a.m. ET to review and discuss the quarter's highlights.
http://finance.yahoo.com/news/teranga-gold-beats-2016-production-220500961.html
Golden Star achieves commercial production at Wassa Underground Gold Mine
Date : 01/06/2017 @ 6:55AM
Golden Star (AMEX:GSS)
Today : Friday 6 January 2017
Commercial production achieved on time and on budget
TORONTO, Jan. 6, 2017 /CNW/ - Golden Star Resources Ltd. (NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the "Company") is pleased to announce that commercial production has been achieved at its Wassa Underground Gold Mine ("Wassa Underground") in Ghana, effective January 1, 2017.
The project construction of Wassa Underground, including the installation of all ancillary infrastructure, is essentially complete and operational, in accordance with the Company's planned schedule and budget.
Gold production is anticipated to continue to ramp up during 2017 as Golden Star's mining operations begin to access the B Shoot, which is a higher grade area of the Wassa Underground ore body. The Company plans to begin longitudinal stoping of the B Shoot in the first quarter of 2017, with the larger, transverse stopes expected to be accessed in the third quarter of 2017.
Since Golden Star blasted the first stope at Wassa Underground in July 2016, the Company has been mining development and stope ore in the F Shoot. Golden Star expects to announce its full year 2016 production results, including the production results for Wassa Underground, and its full year 2017 guidance in terms of production, operating costs and capital expenditures later in January 2017.
Sam Coetzer, President and Chief Executive Officer of Golden Star, commented:
"Achieving commercial production at Wassa Underground marks the successful completion of a 17 month construction period. It is also another important milestone in our transformation into a high grade, non-refractory gold producer. Golden Star also anticipates that it will benefit from Wassa Underground's lower cost production, as a result of the higher grade ore being fed into the Wassa processing plant. I want to thank our project construction team for their outstanding efforts as Wassa Underground was constructed safely, on schedule and within our capital budget. I look forward to announcing our full year 2016 production results and our full year 2017 guidance later this month."
Company Profile
Golden Star is an established gold mining company that owns and operates the Wassa and Prestea mines situated on the prolific Ashanti Gold Belt in western Ghana, Africa. Listed on the NYSE MKT, the TSX, and the GSE, Golden Star is strategically focused on increasing operating margins and cash flow through the development of two high grade, low cost underground mines both in conjunction with existing open pit operations. The Wassa Underground Gold Mine commenced commercial production in January 2017 and the Prestea Underground Gold Mine is expected to achieve commercial production in mid-2017. Both projects are fully funded and on track to begin production as expected. Production in 2016 is expected to be between 180,000–205,000 ounces of gold with costs of US$815–US$925 per ounce.
http://ih.advfn.com/p.php?pid=nmona&article=73559329
Thanks Theme.
Also, Looks like the Mid Morning Knockdown did not last too long, seems to be coming back nice.
Based on board traffic, I guess you and I are the only ones here making a killing today.
Sam, Re-post, this is the line of reasoning I subscribe to as for why they are done for awhile, a bit long but, well worth the read, IMO for reasons explained below, this is the beginning of a repeat of 1H 2016, only more intense this time around:
Understanding Elections, Gold & The US Dollar Via Market Manipulation
Written by: Avery B. Goodman
Recently, almost all prognosticators were predicting that Donald Trump would lose the 2016 election and that Hillary Clinton would be our new President. If by some miracle Trump happened to win, they said the price of gold would soar. When Mr. Trump defied all their expectations and did win, it did soar, but only for a few hours. After that, it was downhill all the way. Many people are perplexed. Even though most now realize that the price of gold is rigged, they still don’t fully grasp what that means.
It is amazing what you can learn about the world around you, simply by carefully watching the machinations of the market manipulators. They can tell you amazing things. For example, those of us who look closely at the manipulation of gold prices already knew that Donald Trump would be the 45th President of the United States many days before the election. We already told our friends about it. We’d already said it didn’t matter what the polls were reporting. We knew the public polls were lying. We had much more reliable pollsters working for us. And, because the banksters paid for those pollsters, it didn’t even cost us one red cent!
To benefit from what I am about to share with you, cleanse your mind of all the preconceptions you came in with. Forget about the money supply, market sentiment, exchange rates, inflation, and inflationary expectations. Forget about the quaint notion that supply vs. demand (in the short to medium run) has anything to do with the price of gold. Most importantly, forget about technical analysis. Fibonacci is as worthless as an Elliott wave when the manipulators paint the tape. It’s all rubbish.
The pricing factors I’ve just rattled off, in the preceding paragraph, do affect gold prices at specific points of time. But, in determining the near-term price of gold, they pale to insignificance compared to market manipulation. A lack of supply, for example, will eventually cause the price of gold to rise over the very long term. However, it happens mainly because western central planners have a limited supply of gold and want to conserve it. Accordingly, they may obey a political decision to slow down the hemorrhage of yellow metal from their vaults. That causes prices to rise. It’s probably the reason gold prices rose dramatically from 2001 to 2011.
Here is the bottom line: the pricing factors that pundits like to talk about eventually matter. They just don’t matter now. They will matter when the official gold reserves of the United States are exhausted or entirely closed off for political reasons. Their closure, as a matter of fact, is about to happen next year, so you won’t have to wait very long. But, in the meantime, until Mr. Barack Obama actually leaves the White House, what matters most is what the market manipulators do. It’s that plain and simple.
Gold is under-supplied and over-demanded, and this has been true for a very long time. Since the Crash of 2008, this problem has grown exponentially. The gap between supply and demand is now enormous. As I pointed out, way back, at the end of the summer of 2015, the deficiency of supply meant that a minimum of 606 tons had to be pumped in to meet demand in 2015. By 2016, if they had not allowed prices to rise, someone would have had to supply something like 1,345 tons, in 2016, to keep prices below $1,200 per ounce.
Soon after I wrote the article, Goldman Sachs began buying physical gold like it was going out of style, even as they were telling everyone else to sell. About 6 months after they stocked up, prices began to soar. Asset prices often tend to move on that approximate timetable when Goldman is involved. But, the key thing to remember is that physical gold (unlike electronic futures contracts) cannot be conjured out of the thin air. The hard yellow metal must come from somewhere. The most likely origin for the massive tonnage of gold that has backstopped market manipulation, for the last 5 years, is the United States Gold Reserve.
The Obama administration appears to have agreed to guaranty the banksters’ downside gold manipulations with “location swaps”. In a “location swap”, a lien is placed on bars of gold stored in an inconvenient location in exchange for bars of gold stored in a convenient location. The liens are assigned to a bank that has possession of easily deliverable bars of gold. It is highly likely that the Federal Reserve and Bank of England, which hold great quantities of gold on behalf of foreign governments, were assigned liens against US Treasury gold held at Fort Knox. Once in possession of the liens, the Fed and BofE delivered the gold bars from their vaults into the market via J.P. Morgan and other banks.
Can I prove this scenario with the required level of certainty in a court of law. No. It would be impossible. No private attorney could ever succeed in proving it. To prove it to a formal legal standard, you need the power to send agents to seize documents and things before the banks could destroy them. Only a determined US prosecuting attorney, or the Attorney General of the United States has that kind of power. Yet, the conclusions are so logical and so deeply supported by both the circumstantial evidence and common sense, that they are almost certain to be true.
The CEOs of all of the major international banking houses that deal in gold paid a visit to the White House, at 11:00 am, the day before the biggest price attack in history was launched against gold in April, 2013. They didn’t go there to play checkers. Nor were they there to commiserate with Obama about the banking industry as the media reported at the time. The latter claim is just a cover story. The CEOs went there to talk about gold, and to urge Obama to release enough of it to silence the “canary in the coal mine” (gold price increases) because it was loudly chirping that his policies, which they supported, were failing.
In short, American government has been supplying physical gold to back up gold price manipulation. I am not talking about merely supplying what is required to back up .4% of the futures contract buyers at COMEX who demand physical delivery. I am talking about backing up the gap amounting to hundreds and even well over a thousand tons of the stuff every year. This is metal that must be delivered by the banks all over the globe — to China, India, South America, Europe and the Middle East.
For example, when gold was selling for less than $1,200 per ounce, some entity (whom I nicknamed the “gold supplier of last resort) supplied a minimum of 606 tons of gold (probably a lot more) in 2015. By 2016, that same entity would have had to deliver 1,345 tons more to keep prices at 2015 levels. If the supply gap had not been filled prices would have returned quickly to a minimum of $1,500 – $1,600 range where supply and demand converged back in 2012.
Let’s fast forward to late 2016. The price of gold had already dramatically risen since I’d written those articles about the shortfalls. As the prices rose, of course, physical demand fell. However, physical demand has never fallen low enough to completely relieve the pressure on US gold reserves. Higher prices simply reduced the pressure, but did not eliminate it. Had Clinton won the Presidential election, things would have continued the way the manipulators planned. They were slowly allowing prices to normalize toward an equalization of supply & demand, making a few million in profits along the way.
But, as the beginning of November began to unfold, the banksters got shocked by a surprise. The person “annointed” by them, to be the next President, was going to lose the election. They’d used their campaign contributions to control the Presidency for decades! But, in 2016, for the first time perhaps in history, hundreds of millions of dollars have been wasted. In spite of all the money they poured into the Hillary Clinton campaign, Donald J. Trump was going to win.
The public pollsters who work for the likes of the NY Times, CNN, NBC, et. al. weren’t about to let the American public know that, of course. But, the banksters knew better. They have their own private pollsters. Unlike the public polling companies that work for the mainstream media, the results delivered by these private pollsters are not contaminated by political distortion. The bankster’s private polling agencies are entirely impartial and accurate. They have to be. Billions of dollars in depositor cash were riding on it, all at risk inside the derivatives casino the banksters have created.
The key manipulators knew the truth… and it showed… several days before the election. Because they knew the truth, those of us who follow their antics also knew. All you had to do was watch what they were doing to the price of gold, toward the end of the week that preceded election day. Their actions clearly broadcast that Donald J. Trump would win the Presidency on November 8th.
Our new President-elect has often expressed an affinity for the yellow metal and even the gold standard. He is almost certain to reverse the executive orders, signed by Obama, that secretly gave the banksters unfettered access to pissing away America’s treasure. That’s why when they found out he was almost certain to win, they had to change their strategy dramatically. A Trump win meant that their use of US government’s gold was about to end, and they need that gold in order to carry out profitable price manipulations in the futures markets.
Just like they did prior to the British Brexit vote, the banksters acted ahead of time. They began attacking gold prices toward the end of the week before the election. Yet, no one can be 100% sure their pollsters are correct. Not even independent polls without bias can provide 100% certainty. Therefore, the manipulations of the week prior to the election seem relatively small-scale. I believe that they were primarily geared toward assisting individual banksters address private portfolios with an expectation about what they would do with public money afterward. The main part of the upcoming manipulation would be saved until after the election result was certain.
As news of Trump’s win became known to the general public, non-connected traders, who innocently believed that real market factors drive gold prices, believed that prices would rise if Trump became President. They began to pour assets into the gold futures market. That sent gold prices soaring. It was also music to the ears of the manipulators. It allowed them to take a lot of transient short positions at the highest possible prices. Having done that, they proceeded to attack the long buyers by bombarding the COMEX (where world gold prices are set) with a huge tonnage of paper gold futures contracts. Prices began to tumble in response to this wave of transient short selling.
Remember, to create gold futures contracts, you don’t need to possess any real gold. All you need are U.S. dollars to put down as so-called “performance bonds”. The well financed banksters have access to a virtually unlimited amount of dollars simply by tapping the Federal Reserve’s so-called “loan windows”. They stepped down hard, putting the pedal to the metal. They used their cash to back up performance bonds on thousands of tons of theoretical (nonexistent except on paper) gold bullion, targeting pre-existing stop-loss orders placed by the over-leveraged non-connected futures long buying crowd.
As always, they succeeded in triggering involuntary liquidation, which in turn triggered lower prices, triggering more stop loss orders, more involuntary liquidation and eventually triggering margin calls. The over-leveraged non-connected hedge fund managers did what they always do. They began panicking. The connected banksters continued to attack, eliciting more and more pain and panic, and it continued, as it always does, until the computerized algorithms determined that the process was no longer effective.
Then, in the midst of the shell-shocked “market” the banksters again did what they always do. They carefully and quietly coordinated with each other to cover both the transient short positions that induced the panic, and the longer term short positions they had been aiming to get rid of. The process of market manipulation, using futures markets, is not that difficult to understand, but a full description does require more space than this article allows. For a better understanding of how banksters induce artificial long and short “squeezes”, for fun and profit, read the novel “The Synod”.
Donald J. Trump is now President-elect. When he takes office on January 20th, the banksters will lose access to the US gold reserve. Without those thousands of tons of gold to offset ongoing supply shortages, the price of gold will rise dramatically. The banksters now need to escape from as many short positions as they can before that happens. To do it, they must induce involuntary liquidation and panic selling. That is what they have been doing.
Manipulators also want to escape from long positions in the US dollar. The non-connected hedge fund managers, innocent though they may be, were on to something. Under the Trump administration, the price of gold will rise sharply, and the US dollar will eventually fall. It just won’t happen for the reasons they believed or on the timetable that they assumed. The banksters are only slightly less concerned about escaping long positions in the US dollar as short positions in gold. So, they’ve induced the same type of involuntary liquidation and panic covering by short dollar speculators as with long gold speculators. In gold, they engineered a “long squeeze”. In the dollar, it’s a short squeeze… the exact opposite.
Since a rise in the dollar puts some pressure on gold prices, the two squeezes have a great deal of synergy. Each assists the other in accomplishing the ultimate goal, which is to assist the banksters and the connected hedge funds they control to shift their portfolio positioning, maximizing future profits while minimizing losses. It is even easier to panic dollar short position holders than gold long buyers. All you really have to do is hold up the specter of a Federal Reserve interest rate hike. Best of all, you don’t even have to worry about meeting delivery demand even for paper, let alone hard real metal. The dollar is now nothing more than 95% electronic digital notations on a banking ledger.
Like the long gold buyers, dollar short sellers are dramatically over-leveraged and under-capitalized, and cannot hold out against the slightest rise in exchange value of the dollar. Price movement in the US dollar is even easier when you can warn that the incoming Trump administration will induce the repatriation of hundreds of billions of US dollars by American corporations overseas. The incoming President has promised a tax holiday to companies that bring money back to America from overseas. Uninformed hedge fund managers assume that the repatriation of dollars from abroad must result in a rise in the exchange value of the dollar. They would be right if the dollars were now being stored in the form of Euros or Pounds Sterling. But, they are not.
A vast majority of the funds that will be repatriated to the United States are already in the form of dollar deposits. The dollars are inside foreign banks but don’t need to be converted. For example, euro-dollar deposits can be easily transferred from Barclays branches in the U.K. and J.P. Morgan branches in Germany to those in the United States. All it takes is an electronic notation that says the money is now assigned to a branch in America rather than abroad. No currency conversion required. The dollars will even remain available for foreigners to borrow! In short, the net effect, other than the propaganda value in convincing non-connected hedge fund managers that the move is meaningful to markets, is meaningless.
The history of dollar repatriation further supports the fact that dollar repatriation has almost no significant impact on exchange rates. The last amnesty occurred during the Bush administration during the period 2004-05. At that time, multinational corporations transferred about $345 billion to the USA. The 2017 transfer will probably be bigger but it still won’t matter much because a vast majority of the funds are already dollar denominated. In 2004-05, the US dollar’s exchange value went up only very slightly for a very short time. Mostly, like now, it happened before the law became effective. Then, as will happen again, the dollar declined.
Historical facts don’t matter, however, because gamblers are not historians and generally pay no attention to history. They make decisions on the basis of technical analysis and their gut emotions. That’s what the manipulators count on. The process of moving asset prices up and down for fun and profit is all about inducing irrationality, panic and, on occasion, euphoria. It is certainly not about explaining real facts. The over-leveraged non-connected hedge fund managers do not understand the facts. But, you may… so here they are — our new President-elect has promised to bring manufacturing jobs back to a hollowed out US economy. It will be very difficult to do that with a soaring US dollar. Trump’s new Treasury Secretary will not allow the dollar to soar, regardless of what the market gamblers now believe. A lot of non-connected hedge fund managers are about to lose a lot of money for their investors.
Watching the gold market carefully is particularly helpful in providing accurate predictions on both when a manipulation is likely to begin and when it will end. Typically, the gold “market” is subjected to heavy manipulation late in every month prior to major futures contract maturity dates. Since December is always the biggest gold delivery month of the year, it makes perfect sense that a lot of manipulation would take place leading up to it, especially given the election factor described above. Market manipulations will usually continue into the first part of the delivery month itself ending somewhere in the early to middle part.
Let’s use December as our illustration of the process. December futures options expire late in November. Huge sums of money are at stake if options expire “in the money”. Therefore, like at any other casino, the banksters change the odds inside the slot machines. The big derivatives writing banks appear to manipulate underlying futures prices to insure that the price, on expiration, results in a minimum payout. If the balance of the options purchases show that too many people will get paid at a certain price, they won’t allow the price to hit that level on the day of expiration. If minimizing payouts and maximizing profits requires upward manipulation, the price will go up. If it requires downward action, the price will go down. By the time they are finished, almost every time, the manipulators will have insured that their sponsoring banks pay the least amount possible to the gamblers who own the options.
Controlling the gold market, however, as previously noted, is more difficult than controlling a purely paper or electronic notation-based market, like that for a fiat currency. Control is limited by the willingness of the government to guaranty the delivery of physical gold necessary to back up the manipulations. The extent to which President Obama and his Treasury Secretary have allowed or restricted utilization of the U.S. Treasury-owned gold has determined its price for at least five years. That’s how we know that, once access to the reserves is cut off, the price of gold must go up.
Typically, downward (or upward on rare occasions) gold manipulation does not end with the options expiration date. Banks also need to make large deliveries of real gold during big futures maturity months. They want to pay as little as possible for that gold. They are buying a lot of it, indirectly, from the US gold reserve, but that doesn’t matter. Wherever it comes from, they always seem to have an eye on manipulating the prices to wherever they need to be in order to maximize profits. The December gold delivery month is usually the largest of the year, so the incentive to manipulate before and into December is always very strong, even without an incoming new President.
By now, you may be wondering how and when, if ever, the price manipulation will end? When will gold prices do what they are supposed to do? When will they be allowed to rise? The answer is simple and I will repeat it, once more. President Donald J. Trump will take office on January 20th. After that, the banksters will be cut off from the US gold reserve. Gold prices may rise somewhat earlier than that, but they will certainly shoot up starting in January 2017. It is likely that the price appreciation in 2017 will be significant.
Gold prices must rise to at least $1,500 – $1,600 per ounce, because that was the point at which, during 2012, supply approximately equaled demand, without injections from the US gold reserve. We might already be there, but for the US Presidential elections. We will now have to wait a bit longer but the payoff will probably be greater. Because the demand for gold is higher than in 2012, and the supply is lower, however, the two may no longer balance at $1,600. The price may have to shoot considerably further than that. It is a good idea to take advantage of the the current market manipulation to buy gold or related metals at a favorable price.
The dollar is a bit trickier. Its future course is no longer as easy to predict as the price of gold. So long as the Federal Reserve keeps its loan windows open, it will continue to be easily manipulated by banksters, regardless of who holds the White House. Also, it has been and will probably continue to be underpinned (somewhat) by weakness in competing fiat currencies such as the Euro. Nevertheless, the hedge fund managers who are buying it now, in the belief that it will rise dramatically above the current level, are going to lose a lot of money. The incoming President will not allow the dollar to soar, because it would destroy American exports.
Nothing I’ve discussed in this article addresses the thorniest issue of all. The Obama administration, working in conjunction with other western leaders and the major central banks, have created what is probably the biggest financial bubble the world has ever known. Even if the new President’s policies are as successful as they can possibly be, it is hard to imagine how he can prevent the implosion of this unstable situation. If the bubble implodes, then all bets are off as to how high gold prices can soar.
Just money flowing back into bonds, lowering the yields. Gold has an inverse relationship to lower yields. I've been saying all along that the straight up dollar and stock market since election night was not sustainable.
No, I think they are done for awhile, just like last year.
Let's hope this continues for awhile before any buyouts.
Yes sir, its been a long wait, now 30k!
Congrats, Sam, I'm already up $23k on my miners this AM, sure brings back memories of 1H of 2016! And no, I'm not selling yet, because my shares don't expire.
Muslims must be buying gold hand over fist, DXY once again diving below 102. gold now $1178
Gold looking pretty good at $1174 on the back of the dollar catching down to reality. IMO this is not just another head fake.
Let’s Play FOMC Bingo: December Meeting Minutes Show 15 Instances of Uncertainty
http://www.zerohedge.com/news/2017-01-04/let%E2%80%99s-play-fomc-bingo-minutes-show-15-instances-uncertainty
Oh, I see, it will be allowed to run when you mm's are done f***king with it every day.
Just this story at noon maybe and another story that bitcoin just breached $1100...
http://www.zerohedge.com/news/2017-01-04/bank-england-blog-warns-devastating-bond-market-rout-worse-1994-massacre
Miners are still at their lows compared to valuations pre 2008 with gold at $800, they have a long way to go before once again being fairly valued, you guys are too pessimistic, this is the only sector that is not way overbought. With gold approaching $1200 again, quality miners are now leaner and building up their resources, I was up as much as 800% before selling at a 600% gain in September, I have since then re-accumulated more large positions in TGCDF at .75, GSS at .70 and TPRFF at .09, I expect no less than 100-200% on TGZ,GSS and once TPRFF soon solves their convertible debt issue, a 10-20 bagger is in the cards. Although there may be better miners out there at a much higher PPS, the real money is made with higher share counts, requiring a much lower PPS.
Trump is anti-strong dollar, he has filled his cabinet with gold bugs, his economic policies are inflationary and will not work with a strong dollar hurting exports, domestic prices, over seas profits and being a general drag on the economy. I see a more intense repeat of 1H of 2016 in PM's and miners based on upcoming seasonal strength, Trumps economic policies and global macro events.
Come on guys, this is a no brainer!
Stock not performing very well as of late, what happened, where'd the love go?
Geo, that sounds like a possibility but, much like CLGRF before SSRI acquisition, I hope it doesn't happen before we reach the $2 mark.
Geo, this is the line of reasoning I subscribe to, a bit long but, well worth the read, IMO for reasons explained below, this is the beginning of a repeat of 1H 2016, only more intense this time around:
Understanding Elections, Gold & The US Dollar Via Market Manipulation
Written by: Avery B. Goodman
Recently, almost all prognosticators were predicting that Donald Trump would lose the 2016 election and that Hillary Clinton would be our new President. If by some miracle Trump happened to win, they said the price of gold would soar. When Mr. Trump defied all their expectations and did win, it did soar, but only for a few hours. After that, it was downhill all the way. Many people are perplexed. Even though most now realize that the price of gold is rigged, they still don’t fully grasp what that means.
It is amazing what you can learn about the world around you, simply by carefully watching the machinations of the market manipulators. They can tell you amazing things. For example, those of us who look closely at the manipulation of gold prices already knew that Donald Trump would be the 45th President of the United States many days before the election. We already told our friends about it. We’d already said it didn’t matter what the polls were reporting. We knew the public polls were lying. We had much more reliable pollsters working for us. And, because the banksters paid for those pollsters, it didn’t even cost us one red cent!
To benefit from what I am about to share with you, cleanse your mind of all the preconceptions you came in with. Forget about the money supply, market sentiment, exchange rates, inflation, and inflationary expectations. Forget about the quaint notion that supply vs. demand (in the short to medium run) has anything to do with the price of gold. Most importantly, forget about technical analysis. Fibonacci is as worthless as an Elliott wave when the manipulators paint the tape. It’s all rubbish.
The pricing factors I’ve just rattled off, in the preceding paragraph, do affect gold prices at specific points of time. But, in determining the near-term price of gold, they pale to insignificance compared to market manipulation. A lack of supply, for example, will eventually cause the price of gold to rise over the very long term. However, it happens mainly because western central planners have a limited supply of gold and want to conserve it. Accordingly, they may obey a political decision to slow down the hemorrhage of yellow metal from their vaults. That causes prices to rise. It’s probably the reason gold prices rose dramatically from 2001 to 2011.
Here is the bottom line: the pricing factors that pundits like to talk about eventually matter. They just don’t matter now. They will matter when the official gold reserves of the United States are exhausted or entirely closed off for political reasons. Their closure, as a matter of fact, is about to happen next year, so you won’t have to wait very long. But, in the meantime, until Mr. Barack Obama actually leaves the White House, what matters most is what the market manipulators do. It’s that plain and simple.
Gold is under-supplied and over-demanded, and this has been true for a very long time. Since the Crash of 2008, this problem has grown exponentially. The gap between supply and demand is now enormous. As I pointed out, way back, at the end of the summer of 2015, the deficiency of supply meant that a minimum of 606 tons had to be pumped in to meet demand in 2015. By 2016, if they had not allowed prices to rise, someone would have had to supply something like 1,345 tons, in 2016, to keep prices below $1,200 per ounce.
Soon after I wrote the article, Goldman Sachs began buying physical gold like it was going out of style, even as they were telling everyone else to sell. About 6 months after they stocked up, prices began to soar. Asset prices often tend to move on that approximate timetable when Goldman is involved. But, the key thing to remember is that physical gold (unlike electronic futures contracts) cannot be conjured out of the thin air. The hard yellow metal must come from somewhere. The most likely origin for the massive tonnage of gold that has backstopped market manipulation, for the last 5 years, is the United States Gold Reserve.
The Obama administration appears to have agreed to guaranty the banksters’ downside gold manipulations with “location swaps”. In a “location swap”, a lien is placed on bars of gold stored in an inconvenient location in exchange for bars of gold stored in a convenient location. The liens are assigned to a bank that has possession of easily deliverable bars of gold. It is highly likely that the Federal Reserve and Bank of England, which hold great quantities of gold on behalf of foreign governments, were assigned liens against US Treasury gold held at Fort Knox. Once in possession of the liens, the Fed and BofE delivered the gold bars from their vaults into the market via J.P. Morgan and other banks.
Can I prove this scenario with the required level of certainty in a court of law. No. It would be impossible. No private attorney could ever succeed in proving it. To prove it to a formal legal standard, you need the power to send agents to seize documents and things before the banks could destroy them. Only a determined US prosecuting attorney, or the Attorney General of the United States has that kind of power. Yet, the conclusions are so logical and so deeply supported by both the circumstantial evidence and common sense, that they are almost certain to be true.
The CEOs of all of the major international banking houses that deal in gold paid a visit to the White House, at 11:00 am, the day before the biggest price attack in history was launched against gold in April, 2013. They didn’t go there to play checkers. Nor were they there to commiserate with Obama about the banking industry as the media reported at the time. The latter claim is just a cover story. The CEOs went there to talk about gold, and to urge Obama to release enough of it to silence the “canary in the coal mine” (gold price increases) because it was loudly chirping that his policies, which they supported, were failing.
In short, American government has been supplying physical gold to back up gold price manipulation. I am not talking about merely supplying what is required to back up .4% of the futures contract buyers at COMEX who demand physical delivery. I am talking about backing up the gap amounting to hundreds and even well over a thousand tons of the stuff every year. This is metal that must be delivered by the banks all over the globe — to China, India, South America, Europe and the Middle East.
For example, when gold was selling for less than $1,200 per ounce, some entity (whom I nicknamed the “gold supplier of last resort) supplied a minimum of 606 tons of gold (probably a lot more) in 2015. By 2016, that same entity would have had to deliver 1,345 tons more to keep prices at 2015 levels. If the supply gap had not been filled prices would have returned quickly to a minimum of $1,500 – $1,600 range where supply and demand converged back in 2012.
Let’s fast forward to late 2016. The price of gold had already dramatically risen since I’d written those articles about the shortfalls. As the prices rose, of course, physical demand fell. However, physical demand has never fallen low enough to completely relieve the pressure on US gold reserves. Higher prices simply reduced the pressure, but did not eliminate it. Had Clinton won the Presidential election, things would have continued the way the manipulators planned. They were slowly allowing prices to normalize toward an equalization of supply & demand, making a few million in profits along the way.
But, as the beginning of November began to unfold, the banksters got shocked by a surprise. The person “annointed” by them, to be the next President, was going to lose the election. They’d used their campaign contributions to control the Presidency for decades! But, in 2016, for the first time perhaps in history, hundreds of millions of dollars have been wasted. In spite of all the money they poured into the Hillary Clinton campaign, Donald J. Trump was going to win.
The public pollsters who work for the likes of the NY Times, CNN, NBC, et. al. weren’t about to let the American public know that, of course. But, the banksters knew better. They have their own private pollsters. Unlike the public polling companies that work for the mainstream media, the results delivered by these private pollsters are not contaminated by political distortion. The bankster’s private polling agencies are entirely impartial and accurate. They have to be. Billions of dollars in depositor cash were riding on it, all at risk inside the derivatives casino the banksters have created.
The key manipulators knew the truth… and it showed… several days before the election. Because they knew the truth, those of us who follow their antics also knew. All you had to do was watch what they were doing to the price of gold, toward the end of the week that preceded election day. Their actions clearly broadcast that Donald J. Trump would win the Presidency on November 8th.
Our new President-elect has often expressed an affinity for the yellow metal and even the gold standard. He is almost certain to reverse the executive orders, signed by Obama, that secretly gave the banksters unfettered access to pissing away America’s treasure. That’s why when they found out he was almost certain to win, they had to change their strategy dramatically. A Trump win meant that their use of US government’s gold was about to end, and they need that gold in order to carry out profitable price manipulations in the futures markets.
Just like they did prior to the British Brexit vote, the banksters acted ahead of time. They began attacking gold prices toward the end of the week before the election. Yet, no one can be 100% sure their pollsters are correct. Not even independent polls without bias can provide 100% certainty. Therefore, the manipulations of the week prior to the election seem relatively small-scale. I believe that they were primarily geared toward assisting individual banksters address private portfolios with an expectation about what they would do with public money afterward. The main part of the upcoming manipulation would be saved until after the election result was certain.
As news of Trump’s win became known to the general public, non-connected traders, who innocently believed that real market factors drive gold prices, believed that prices would rise if Trump became President. They began to pour assets into the gold futures market. That sent gold prices soaring. It was also music to the ears of the manipulators. It allowed them to take a lot of transient short positions at the highest possible prices. Having done that, they proceeded to attack the long buyers by bombarding the COMEX (where world gold prices are set) with a huge tonnage of paper gold futures contracts. Prices began to tumble in response to this wave of transient short selling.
Remember, to create gold futures contracts, you don’t need to possess any real gold. All you need are U.S. dollars to put down as so-called “performance bonds”. The well financed banksters have access to a virtually unlimited amount of dollars simply by tapping the Federal Reserve’s so-called “loan windows”. They stepped down hard, putting the pedal to the metal. They used their cash to back up performance bonds on thousands of tons of theoretical (nonexistent except on paper) gold bullion, targeting pre-existing stop-loss orders placed by the over-leveraged non-connected futures long buying crowd.
As always, they succeeded in triggering involuntary liquidation, which in turn triggered lower prices, triggering more stop loss orders, more involuntary liquidation and eventually triggering margin calls. The over-leveraged non-connected hedge fund managers did what they always do. They began panicking. The connected banksters continued to attack, eliciting more and more pain and panic, and it continued, as it always does, until the computerized algorithms determined that the process was no longer effective.
Then, in the midst of the shell-shocked “market” the banksters again did what they always do. They carefully and quietly coordinated with each other to cover both the transient short positions that induced the panic, and the longer term short positions they had been aiming to get rid of. The process of market manipulation, using futures markets, is not that difficult to understand, but a full description does require more space than this article allows. For a better understanding of how banksters induce artificial long and short “squeezes”, for fun and profit, read the novel “The Synod”.
Donald J. Trump is now President-elect. When he takes office on January 20th, the banksters will lose access to the US gold reserve. Without those thousands of tons of gold to offset ongoing supply shortages, the price of gold will rise dramatically. The banksters now need to escape from as many short positions as they can before that happens. To do it, they must induce involuntary liquidation and panic selling. That is what they have been doing.
Manipulators also want to escape from long positions in the US dollar. The non-connected hedge fund managers, innocent though they may be, were on to something. Under the Trump administration, the price of gold will rise sharply, and the US dollar will eventually fall. It just won’t happen for the reasons they believed or on the timetable that they assumed. The banksters are only slightly less concerned about escaping long positions in the US dollar as short positions in gold. So, they’ve induced the same type of involuntary liquidation and panic covering by short dollar speculators as with long gold speculators. In gold, they engineered a “long squeeze”. In the dollar, it’s a short squeeze… the exact opposite.
Since a rise in the dollar puts some pressure on gold prices, the two squeezes have a great deal of synergy. Each assists the other in accomplishing the ultimate goal, which is to assist the banksters and the connected hedge funds they control to shift their portfolio positioning, maximizing future profits while minimizing losses. It is even easier to panic dollar short position holders than gold long buyers. All you really have to do is hold up the specter of a Federal Reserve interest rate hike. Best of all, you don’t even have to worry about meeting delivery demand even for paper, let alone hard real metal. The dollar is now nothing more than 95% electronic digital notations on a banking ledger.
Like the long gold buyers, dollar short sellers are dramatically over-leveraged and under-capitalized, and cannot hold out against the slightest rise in exchange value of the dollar. Price movement in the US dollar is even easier when you can warn that the incoming Trump administration will induce the repatriation of hundreds of billions of US dollars by American corporations overseas. The incoming President has promised a tax holiday to companies that bring money back to America from overseas. Uninformed hedge fund managers assume that the repatriation of dollars from abroad must result in a rise in the exchange value of the dollar. They would be right if the dollars were now being stored in the form of Euros or Pounds Sterling. But, they are not.
A vast majority of the funds that will be repatriated to the United States are already in the form of dollar deposits. The dollars are inside foreign banks but don’t need to be converted. For example, euro-dollar deposits can be easily transferred from Barclays branches in the U.K. and J.P. Morgan branches in Germany to those in the United States. All it takes is an electronic notation that says the money is now assigned to a branch in America rather than abroad. No currency conversion required. The dollars will even remain available for foreigners to borrow! In short, the net effect, other than the propaganda value in convincing non-connected hedge fund managers that the move is meaningful to markets, is meaningless.
The history of dollar repatriation further supports the fact that dollar repatriation has almost no significant impact on exchange rates. The last amnesty occurred during the Bush administration during the period 2004-05. At that time, multinational corporations transferred about $345 billion to the USA. The 2017 transfer will probably be bigger but it still won’t matter much because a vast majority of the funds are already dollar denominated. In 2004-05, the US dollar’s exchange value went up only very slightly for a very short time. Mostly, like now, it happened before the law became effective. Then, as will happen again, the dollar declined.
Historical facts don’t matter, however, because gamblers are not historians and generally pay no attention to history. They make decisions on the basis of technical analysis and their gut emotions. That’s what the manipulators count on. The process of moving asset prices up and down for fun and profit is all about inducing irrationality, panic and, on occasion, euphoria. It is certainly not about explaining real facts. The over-leveraged non-connected hedge fund managers do not understand the facts. But, you may… so here they are — our new President-elect has promised to bring manufacturing jobs back to a hollowed out US economy. It will be very difficult to do that with a soaring US dollar. Trump’s new Treasury Secretary will not allow the dollar to soar, regardless of what the market gamblers now believe. A lot of non-connected hedge fund managers are about to lose a lot of money for their investors.
Watching the gold market carefully is particularly helpful in providing accurate predictions on both when a manipulation is likely to begin and when it will end. Typically, the gold “market” is subjected to heavy manipulation late in every month prior to major futures contract maturity dates. Since December is always the biggest gold delivery month of the year, it makes perfect sense that a lot of manipulation would take place leading up to it, especially given the election factor described above. Market manipulations will usually continue into the first part of the delivery month itself ending somewhere in the early to middle part.
Let’s use December as our illustration of the process. December futures options expire late in November. Huge sums of money are at stake if options expire “in the money”. Therefore, like at any other casino, the banksters change the odds inside the slot machines. The big derivatives writing banks appear to manipulate underlying futures prices to insure that the price, on expiration, results in a minimum payout. If the balance of the options purchases show that too many people will get paid at a certain price, they won’t allow the price to hit that level on the day of expiration. If minimizing payouts and maximizing profits requires upward manipulation, the price will go up. If it requires downward action, the price will go down. By the time they are finished, almost every time, the manipulators will have insured that their sponsoring banks pay the least amount possible to the gamblers who own the options.
Controlling the gold market, however, as previously noted, is more difficult than controlling a purely paper or electronic notation-based market, like that for a fiat currency. Control is limited by the willingness of the government to guaranty the delivery of physical gold necessary to back up the manipulations. The extent to which President Obama and his Treasury Secretary have allowed or restricted utilization of the U.S. Treasury-owned gold has determined its price for at least five years. That’s how we know that, once access to the reserves is cut off, the price of gold must go up.
Typically, downward (or upward on rare occasions) gold manipulation does not end with the options expiration date. Banks also need to make large deliveries of real gold during big futures maturity months. They want to pay as little as possible for that gold. They are buying a lot of it, indirectly, from the US gold reserve, but that doesn’t matter. Wherever it comes from, they always seem to have an eye on manipulating the prices to wherever they need to be in order to maximize profits. The December gold delivery month is usually the largest of the year, so the incentive to manipulate before and into December is always very strong, even without an incoming new President.
By now, you may be wondering how and when, if ever, the price manipulation will end? When will gold prices do what they are supposed to do? When will they be allowed to rise? The answer is simple and I will repeat it, once more. President Donald J. Trump will take office on January 20th. After that, the banksters will be cut off from the US gold reserve. Gold prices may rise somewhat earlier than that, but they will certainly shoot up starting in January 2017. It is likely that the price appreciation in 2017 will be significant.
Gold prices must rise to at least $1,500 – $1,600 per ounce, because that was the point at which, during 2012, supply approximately equaled demand, without injections from the US gold reserve. We might already be there, but for the US Presidential elections. We will now have to wait a bit longer but the payoff will probably be greater. Because the demand for gold is higher than in 2012, and the supply is lower, however, the two may no longer balance at $1,600. The price may have to shoot considerably further than that. It is a good idea to take advantage of the the current market manipulation to buy gold or related metals at a favorable price.
The dollar is a bit trickier. Its future course is no longer as easy to predict as the price of gold. So long as the Federal Reserve keeps its loan windows open, it will continue to be easily manipulated by banksters, regardless of who holds the White House. Also, it has been and will probably continue to be underpinned (somewhat) by weakness in competing fiat currencies such as the Euro. Nevertheless, the hedge fund managers who are buying it now, in the belief that it will rise dramatically above the current level, are going to lose a lot of money. The incoming President will not allow the dollar to soar, because it would destroy American exports.
Nothing I’ve discussed in this article addresses the thorniest issue of all. The Obama administration, working in conjunction with other western leaders and the major central banks, have created what is probably the biggest financial bubble the world has ever known. Even if the new President’s policies are as successful as they can possibly be, it is hard to imagine how he can prevent the implosion of this unstable situation. If the bubble implodes, then all bets are off as to how high gold prices can soar.
Thanks, I think 1H of 2017 will be a repeat of 2016 1H for gold , only more intense!
GELRaZ (I like that name!) Is that the norm for GSS, or is it a bit high?
GelRaZ (I like that name!) Is that the norm for GSS, or is it a bit high?
YS, Do you happen to know the shorting interest on GSS? Seems like they are shorting the shit out of it lately.
No metals trading today?
Talk About Insider Buying....Unbelievable!
Keep in mind When Mimran and Tablo are same amounts, with same date, only count once.
2016-12-22
TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +423,000 0.7492 102,347,000 [ + Expand ]
2016-12-22 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +423,000 0.7492 [ + Expand ]
2016-12-22 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +423,000 0.7492 [ + Expand ]
2016-12-22 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +423,000 0.7492 102,347,000 [ + Expand ]
2016-12-22 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +423,000 0.7492 [ + Expand ]
2016-12-21 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +925,000 0.7430 101,924,000 [ + Expand ]
2016-12-21 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +925,000 0.7430 101,924,000 [ + Expand ]
2016-12-20 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +999,000 0.6939 100,999,000 [ + Expand ]
2016-12-20 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +999,000 0.6939 100,999,000 [ + Expand ]
2016-12-20 TGZ Teranga Gold Corporation Dyal, Navin
5 - Senior Officer of Issuer
10 - Acquisition or disposition in the public market +10,000 0.7000 50,000 [ + Expand ]
2016-11-24 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +458,500 0.8585 99,348,500 [ + Expand ]
2016-11-24 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +458,500 0.8585 99,348,500 [ + Expand ]
2016-11-24 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +485,500 0.8585 [ + Expand ]
2016-11-24 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +485,500 0.8585 [ + Expand ]
2016-11-28 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +259,500 0.9063 100,027,000 [ + Expand ]
2016-11-28 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +259,500 0.9063 100,027,000 [ + Expand ]
2016-11-25 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +392,000 0.8627 99,767,500 [ + Expand ]
2016-11-25 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +392,000 0.8627 99,767,500 [ + Expand ]
2016-11-24 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +485,500 0.8585 99,375,500 [ + Expand ]
2016-11-24 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +485,500 0.8585 99,375,500 [ + Expand ]
2016-11-23 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +908,040 0.8198 98,890,000 [ + Expand ]
2016-11-23 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +908,040 0.8198 98,890,000 [ + Expand ]
2016-11-21 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +29,500,000 1.0500 93,646,960 [ + Expand ]
2016-11-21 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +4,335,000 1.0500 97,981,960 [ + Expand ]
2016-11-21 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +29,500,000 1.0500 93,646,960 [ + Expand ]
2016-11-21 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +4,335,000 1.0500 97,981,960 [ + Expand ]
2012-10-09 TGZ Teranga Gold Corporation Chawrun, William Paul
5 - Senior Officer of Issuer
00 - Opening Balance-Initial SEDI Report [ + Expand ]
2016-11-21 TGZ Teranga Gold Corporation Chawrun, William Paul
5 - Senior Officer of Issuer
15 - Acquisition or disposition under a prospectus +24,000 1.0500 24,000 [ + Expand ]
2016-11-21 TGZ Teranga Gold Corporation Lattanzi, Christopher
4 - Director of Issuer
15 - Acquisition or disposition under a prospectus +20,000 1.0500 70,000 [ + Expand ]
2016-11-21 TGZ Teranga Gold Corporation Dyal, Navin
5 - Senior Officer of Issuer
15 - Acquisition or disposition under a prospectus +20,000 1.0500 40,000 [ + Expand ]
2016-11-21 TGZ Teranga Gold Corporation Goldenberg, Edward
4 - Director of Issuer
15 - Acquisition or disposition under a prospectus +25,000 1.0500 100,000 [ + Expand ]
2016-11-21 TGZ Teranga Gold Corporation Biggar, William John
4 - Director of Issuer
15 - Acquisition or disposition under a prospectus +100,000 1.0500 100,000 [ + Expand ]
2016-06-07 TGZ Teranga Gold Corporation Biggar, William John
4 - Director of Issuer
00 - Opening Balance-Initial SEDI Report [ + Expand ]
2016-11-01 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +770,300 1.1400 64,146,960 [ + Expand ]
2016-11-01 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +770,300 1.1400 64,146,960 [ + Expand ]
2016-08-30 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +655,400 1.1573 53,216,635 [ + Expand ]
2016-08-30 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +655,400 1.1573 53,216,635 [ + Expand ]
2016-08-30 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +655,000 1.1573 [ + Expand ]
2016-08-30 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +655,000 1.1573 [ + Expand ]
2016-10-12 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
11 - Acquisition or disposition carried out privately +9,671,625 1.0000 63,376,260 [ + Expand ]
2016-10-12 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
11 - Acquisition or disposition carried out privately +9,671,625 1.0000 63,376,260 [ + Expand ]
2016-09-01 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +145,500 1.1548 53,704,635 [ + Expand ]
2016-09-01 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +145,500 1.1548 53,704,635 [ + Expand ]
2016-08-31 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +342,900 1.1381 53,559,135 [ + Expand ]
2016-08-31 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +342,900 1.1381 53,559,135 [ + Expand ]
2016-08-30 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +655,000 1.1573 53,216,235 [ + Expand ]
2016-08-30 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +655,000 1.1573 53,216,235 [ + Expand ]
2016-08-10 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +81,100 1.1604 52,561,235 [ + Expand ]
2016-08-10 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +81,100 1.1604 52,561,235 [ + Expand ]
2016-08-08 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +484,200 1.1409 52,480,135 [ + Expand ]
2016-08-08 TGZ Teranga Gold Corporation Mimran, David Jacques
3 - 10% Security Holder of Issuer, 4 - Director of Issuer
10 - Acquisition or disposition in the public market +484,200 1.1409 52,480,135 [ + Expand ]
2016-08-05 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +492,900 1.1158 51,995,935 [ + Expand ]
2016-05-03 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +87,100 0.9989 48,124,600 [ + Expand ]
2016-03-23 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +102,000 0.5931 48,037,500 [ + Expand ]
2016-03-14 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +504,500 0.6045 46,864,500 [ + Expand ]
2015-12-18 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +379,500 0.4945 45,589,500 [ + Expand ]
2016-05-05 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +567,600 1.0238 49,726,200 [ + Expand ]
2015-12-15 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +5,833,500 0.5400 45,033,500 [ + Expand ]
2016-03-03 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +115,500 0.5794 45,790,000 [ + Expand ]
2016-03-22 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +265,500 0.6000 47,935,500 [ + Expand ]
2016-08-05 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +492,900 1.1158 51,995,935 [ + Expand ]
2016-05-06 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +1,192,635 1.0535 50,918,835 [ + Expand ]
2016-03-18 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +151,500 0.6054 47,494,000 [ + Expand ]
2016-03-16 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +5,500 0.6266 47,271,000 [ + Expand ]
2016-03-11 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +466,000 0.6014 46,360,000 [ + Expand ]
2015-12-21 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +85,000 0.4946 45,674,500 [ + Expand ]
2016-08-04 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +584,200 1.1317 51,503,035 [ + Expand ]
2016-03-15 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +401,000 0.6044 47,265,500 [ + Expand ]
2016-03-09 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +104,000 0.6057 45,894,000 [ + Expand ]
2015-12-17 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +176,500 0.4945 45,210,000 [ + Expand ]
2016-05-05 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +1,034,000 1.0233 49,158,600 [ + Expand ]
2016-03-21 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +176,000 0.6054 47,670,000 [ + Expand ]
2016-03-17 TGZ Teranga Gold Corporation Mimran, David Jacques
4 - Director of Issuer
10 - Acquisition or disposition in the public market +71,500 0.6057 47,342,500 [ + Expand ]
2016-08-04 TGZ Teranga Gold Corporation Hill, Alan Richard
4 - Director of Issuer
10 - Acquisition or disposition in the public market +225,000 1.1300 444,000 [ + Expand ]
2016-08-04 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +584,200 1.1317 51,503,035 [ + Expand ]
2016-05-05 TGZ Teranga Gold Corporation Savarie, David Roger
5 - Senior Officer of Issuer
59 - Exercise for cash -31,539 0.9800 404,748 [ + Expand ]
2016-05-05 TGZ Teranga Gold Corporation Dyal, Navin
5 - Senior Officer of Issuer
59 - Exercise for cash -31,539 0.9800 404,748 [ + Expand ]
2016-05-05 TGZ Teranga Gold Corporation Young, Richard Scott
4 - Director of Issuer, 5 - Senior Officer of Issuer
59 - Exercise for cash -63,079 0.9800 742,826 [ + Expand ]
2016-05-05 TGZ Teranga Gold Corporation Savarie, David Roger
5 - Senior Officer of Issuer
51 - Exercise of options +31,539 0.9800 [ + Expand ]
2016-05-05 TGZ Teranga Gold Corporation Chawrun, William Paul
5 - Senior Officer of Issuer
59 - Exercise for cash -31,539 0.9800 504,748 [ + Expand ]
2016-06-07 TGZ Teranga Gold Corporation Biggar, William John
4 - Director of Issuer
00 - Opening Balance-Initial SEDI Report [ + Expand ]
2016-06-10 TGZ Teranga Gold Corporation Biggar, William John
4 - Director of Issuer
56 - Grant of rights +75,000 1.0600 75,000 [ + Expand ]
2016-05-06 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +1,192,635 1.0535 50,918,835 [ + Expand ]
2016-05-03 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +87,100 0.9989 48,124,600 [ + Expand ]
2016-05-05 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +1,034,000 1.0233 49,158,600 [ + Expand ]
2016-05-05 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +567,600 1.0238 49,726,200 [ + Expand ]
2015-03-31 TGZ Teranga Gold Corporation Dyal, Navin
5 - Senior Officer of Issuer
56 - Grant of rights +300,000 0.6400 900,000 [ + Expand ]
2015-03-31 TGZ Teranga Gold Corporation Savarie, David Roger
5 - Senior Officer of Issuer
56 - Grant of rights +300,000 0.6400 1,400,000 [ + Expand ]
2015-03-31 TGZ Teranga Gold Corporation Savarie, David Roger
5 - Senior Officer of Issuer
56 - Grant of rights +300,000 0.6400 [ + Expand ]
2015-03-31 TGZ Teranga Gold Corporation Chawrun, William Paul
5 - Senior Officer of Issuer
56 - Grant of rights +300,000 0.6400 900,000 [ + Expand ]
2015-03-31 TGZ Teranga Gold Corporation Young, Richard Scott
4 - Director of Issuer, 5 - Senior Officer of Issuer
56 - Grant of rights +750,000 0.6400 2,750,000 [ + Expand ]
2016-03-22 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +265,500 0.6000 47,935,500 [ + Expand ]
2016-03-23 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +102,000 0.5931 48,037,500 [ + Expand ]
2016-03-09 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +104,000 0.6057 45,894,000 [ + Expand ]
2016-03-15 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +401,000 0.6044 47,265,500 [ + Expand ]
2016-03-16 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +5,500 0.6266 47,271,000 [ + Expand ]
2016-03-14 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +504,500 0.6045 46,864,500 [ + Expand ]
2016-03-21 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +176,000 0.6054 47,670,000 [ + Expand ]
2016-03-18 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +151,500 0.6054 47,494,000 [ + Expand ]
2016-03-03 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +115,500 0.5794 45,790,000 [ + Expand ]
2016-03-17 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +71,500 0.6057 47,342,500 [ + Expand ]
2016-03-11 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +466,000 0.6014 46,360,000 [ + Expand ]
2015-12-17 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +176,500 0.4945 45,210,000 [ + Expand ]
2015-12-18 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +379,500 0.4945 45,589,500 [ + Expand ]
2015-12-21 TGZ Teranga Gold Corporation Tablo Corporation
3 - 10% Security Holder of Issuer
10 - Acquisition or disposition in the public market +85,000 0.4946 45,674,500 [ + Expand ]
GSS is my other large holding, they have lots going on 1H of 2017 into 2019. 29% decreased AISC with 60% increase in production with new underground expansions adjacent to both of their existing open pits.
Presentation, Expanding Production And Reducing Costs:
https://drive.google.com/file/d/0B3RRBj1z6NqmZGlyOU1Fb1lUMDg/view
I had already doubled down @.95, never, ever thinking it would go this low again. I'm all in with 300k, bought with profit from CLGRF/SSRI.
Yeah, its a good thing they got their expansion financing out of the way and completed at 1.05 right before gold tanked!
T, The most recent placement was for 62M shares at 1.05, there was a holding period and the price has been dropping below 1.05 ever since closing. I don't think that PP has been the reason for the shorting.
CD
T, I am well, not a lot happening on the individual gold stock boards as you know, with gold down and all. I hang out on the "Mining and Metals" board, you should come on over, would be nice to have your input added to the mix.
CD
http://investorshub.advfn.com/~*~Mining-and-Metals-Du-Jour~*~-15977/
Looks like the sellers have left the building for TGZ and GSS, although Mimran/Tablo did just buy another 999,000 on the 21st.
The Market Crooners Are F.O.S
Facts:
The S&P 500, and most of the DOW, garner a lot of their revenue (and earnings) overseas.
The Dollar has been on a tear for the last several months (since August, roughly) and is now trading at levels it has not since 2002 (!)
Said currency translation means that those foreign earnings are depreciated since foreign currency buys fewer dollars.
The S&P 500 is trading at historic highs on a cyclically-adjusted P/E basis, and well into "overvalued" territory even on simple trailing earnings. In fact on a CAPE basis the S&P is trading at a higher multiple than either 2000 or 2007!
In other words the entire market is priced for perfection -- higher earnings in the future, a softer currency and no increase in operating -- that means borrowing, given the last few years of history -- costs.
None of those things are likely to be true.
It is an effective impossibility that all of them will be true.
How overvalued is the market? That depends on where you look in the market but 25% overvalued is in fact quite conservative.
This, of course, assumes no shocks. No problems with debt load. No runaway inflation, or worse, a runaway budget deficit (caused by tax cuts and Trump's refusal to address medical monopolies, which I remind you, he has struck from his transition web site and made not one mention of since the election.) It is thus extremely likely, in fact bordering on certainty that runaway medical costs in the federal government will destroy the federal funding model within the next four to five years.
It assumes no serious terrorist incidents that disrupt transportation occur; for example, a "rogue" MANPAD attack on a cargo airliner (or worse, a passenger jet!)
It assumes the dust-up in Turkey doesn't spread (which could lead to a global conflagration.) I remind you that Europe, including Germany, has invited millions of jihadi-sympathizing "refugees" into their nations over the last few years.
It assumes that the inexorable home price destruction that comes from higher interest rates (which is a simple mathematical formula) doesn't result in either a collapse in home sales or possibly worse, a re-emergence of zero-down liar-loan style "financing" that (again) blows up in everyone's face, threatening the destruction of the financial system -- when neither The Fed or the Government has the ability to once again double federal debt to bail them out.
The TNX (10 year Treasury) has already broken the declining trendline from 2009. But far more-importantly it has also decidedly broken, on a monthly closing basis (and will almost-certainly do so on a yearly closing basis) the bond bull-market trendline dating to 1983.
Almost exactly none of the so-called "market mavens" that are out there today have any memory of market conditions prior to that bond bull market as none of them were in the market 30+ years ago. Many younger professionals weren't even alive back then. Nobody under the age of 50 was an adult when that last secular change took place and almost nobody under the age of 60 has any sort of experience managing wealth in such an environment because few people under the age of 30 have any wealth to manage.
In other words everything you, your broker, the media and everyone else thinks they know about markets is wrong because the predicate on which all of it has been founded for the last 30 years has, in the last two months, been ripped out from under you -- and them.
In 1999 despite it being obvious that the tech wreck was going to occur the market continued upward and in fact the Nasdaq doubled during that year before it all blew up and crashed -- entirely on "animal spirits", or more-accurately the greater fool was out in force.
Said fool then lost nearly all of his money.
Cramer's Winners of the New World portfolio lost very close to all of its value -- something that even today he refuses to talk about.
But this time there is no place to go for a "reflation" of those assets. The government cannot "print debt" into a rising rate environment as doing so causes instant insolvency through unpayable interest expense as the current debt load makes materially adding to said federal debt, certainly in the amounts required to stop such a collapse, impossible.
In short the game of "turning the leverage crank" to bail people out and continue the rise in asset prices has ended. I have been warning for the last several years that this was inevitable but the question is always a matter of timing. It went further than I thought it would (by quite a bit) but that's not unusual at all, since the break-point is almost always a matter of psychology rather than hitting a hard limit somewhere.
We now have the timing, however, with a solid and violent monthly break of the 30+ year bond trendline and a nearly-certain annual (and equally-violent) break of that same trend. It's over, and this means that whatever you think you know about the investing world that has been predicated on ever-cheaper credit is wrong and in fact exactly backward. It is now merely a function of when psychology catches up with reality -- and it will, because on the math it inevitably must.
Time's up.
https://market-ticker.org/akcs-www?post=231730
Cork, I am a huge aerospace fan, love anything related to the Mercury/Apollo missions (men, machines, technology and historical footage), and have seen and recorded all the documentary footage and astronaut interviews from the aforementioned. The 12 astronauts that walked on the moon were great, great Americans, scientists, geologists and explorers, if you watch them being interviewed, you will know they are being forthcoming and absolutely honest in every detail. I absolutely love, respect and idolize those men and their stories. Anybody that thinks we didn't go to the moon is disconnected with reality, completely ignorant of the facts, does not have the ability to think critically and will be summarily dismissed by me, just so you know!
Paul Krugman ? @paulkrugman
"Are people noticing that the Trump economic team is shaping up as a gathering of gold bugs?"
Cork, That's coming from somebody that entertains notions of a flat earth, I've dismissed his opinion long ago.
Gold: The Wait For Inauguration Day
Dec 20, 2016
At this time last year, most gold investors and analysts were predicting lower prices for gold. Many of them were shorting it.
The shorts were obliterated, because gold bottomed the day after the December 2105 FOMC meeting. It soared about $330 an ounce, from about $1045 to above $1375.
It’s been said that history doesn’t exactly repeat, but it does rhyme. On that note, please click here now. Double-click to enlarge this daily bars gold chart.
Gold has a cyclical tendency to decline ahead of a rate hike, and rally after it is announced.
This time, the US election may delay the rally, but create one that is bigger and more sustained than the rally of 2016. Here’s why:
Republican parties have cyclically been associated with significant US dollar downtrends. The next presidential inauguration occurs on January 20, 2017.
Donald Trump has repeatedly stated that he wants a lower dollar. He’ll have control of both the senate and the congress, putting him in a position of tremendous power to impose his will on US markets.
Please click here now. Double-click to enlarge. Most technicians are now wildly bullish on the US dollar index.
They are excited about what appears to be an “upside breakout”, and there’s no question that the US dollar index could move higher until inauguration day.
Note the RSI non-confirmation with the price on that daily bars US dollar index chart. The dollar’s technical strength is weakening quite dramatically.
For a big picture view of the dollar’s price action during the past few presidencies, please click here now. Double-click to enlarge.
As rates rise, and Trump increases government debt while cutting taxes, the US government’s credit rating could get downgraded, adding more downwards pressure on the dollar.
Janet Yellen initially endorsed a “high pressure” economy, but after the latest FOMC meeting she said that she’s not necessarily looking for easy money policy to continue.
That’s superb news for inflation enthusiasts, because higher rates incentivize banks to move money out of government bonds and into the fractional reserve banking system.
Trump’s tax cuts will further incentivize the banks to make loans to the private sector, and move even more money out of the US government bond market.
The bottom line is that Janet Yellen can create a higher pressure economy with rate hikes than without them. With Donald “The Golden Trumpster” in power, inflation may rise much faster than anticipated, regardless of what Janet does.
I expect US money velocity to bottom by the summer of 2017 and begin a long term bull cycle, mainly because of the policies of both Trump and Yellen.
Gold stocks can dramatically outperform gold in that environment. On that note, please click here now. Double-click to enlarge this GDX daily bars chart.
There’s no question that GDX is in a downtrend. The pattern of lower minor trend lows and lower highs is what defines a downtrend in any market.
Please click here now. Double-click to enlarge. That’s another look at the GDX daily chart. In strong uptrend, the RSI oscillator tends to oscillate between the 70 area and 50. In a downtrend, RSI tends to oscillate between 20 and 50.
Amateur investors tend to be obsessed with trying to figure out whether a market is making a major bottom, top, or about to accelerate its trend. I would argue that such an obsession doesn’t build wealth that is sustained. It’s a subtle form of gambling, and gamblers tend to lose money on an ongoing basis.
Rather than trying to gamble on whether GDX will continue its current pattern of lower highs and lower lows or not, my suggestion to the world gold community is to simply wait for a pattern of higher highs and higher lows to appear. That’s what defines an uptrend.
Please click here now. Double-click to enlarge. That’s a third view of the GDX daily chart. There is support in the $17 - $18 area, and an important buying area. Importantly, this chart shows that there was no uptrend in place in the days following last year’s rate hike. GDX declined to a final low in January of 2016, but it wasn’t until the spring that an uptrend was apparent. The bottom line:
Professional investors have a lot of patience, and amateur investors need to focus on developing it. It’s highly likely that a new and sustained uptrend in precious metals will begin, once the weak dollar policy of the Trump administration becomes clear!
http://www.321gold.com/editorials/thomson_s/thomson_s_122016.html
Trump Will Have To Devalue The Dollar For His Economic Policies To Be Successful, Gold Will Then Regain Its Strength.
WASHINGTON (AP) — President-elect Donald Trump’s ambitious plans to revive exports, return jobs to the United States and increase oil drilling are running up against a home-grown threat:
The surging U.S. dollar.
Since the Nov. 8 election, the dollar has shot up 5 percent. An index that tracks the dollar against other major currencies reached a 14-year high after the election before dipping a bit since then.
In part, the dollar’s gain reflects the U.S. economy’s strength and investor confidence that Trump will accelerate growth by slashing taxes and pumping money into roads, bridges and other infrastructure. The dollar could rise even more now that the Federal Reserve has raised interest rates and foresees three more hikes next year. With rates far lower elsewhere in the world, many investors will shift money to the United States to capitalize on higher yields — a shift that could send the dollar even higher.
Which creates a problem: An expensive dollar makes U.S. goods costlier overseas — and imports cheaper in the U.S. That’s a recipe for more pain for American manufacturers. A high dollar can also lead some U.S. multinational companies to move operations to countries where their dollars go further.
And a high-priced dollar tends to shrink oil prices, thereby discouraging the increased energy production that Trump has made a centerpiece of his economic plans.
“A strong dollar will make it more challenging to boost the international competitiveness of U.S. manufacturing, bring back jobs and increase exports,” says Eswar Prasad, professor of trade policy at Cornell University.
Even before the election, a comparatively strong dollar had slowed U.S. exports for much of the past two years. Exports of goods and services had peaked in October 2014 at $200 billion. The figure fell to $179 billion in March before recovering slightly as the dollar weakened. But then the dollar marched back up and accelerated after Trump’s victory. It was no surprise when U.S. exports fell nearly 2 percent in October, according to the Commerce Department.
Consider what the strong dollar does to U.S. corporate earnings, too: Whatever revenue American companies earn in foreign currencies is worth less once it’s exchanged into U.S. dollars and returned home. In recent weeks, American companies, from Whirlpool to Apple, have complained that the strong dollar has dented their earnings.
At Vaughn Manufacturing Co. in Nashville, Tennessee, the company president, Mark Vaughn, is fretting about the dollar’s 11 percent rise against Mexico’s peso since the election. Around 20 percent of Vaughn’s tool-and-die business is done in Mexico. And the company competes with Chinese and Korean companies that aren’t saddled with an expensive currency.
“It’s a concern,” he says.
A rising dollar can encourage U.S. companies to move factories and jobs overseas because it makes foreign investments cheaper. Trump, of course, has pledged to stop American companies from taking operations offshore. He’s even threatened to impose a 35 percent tax on companies that leave America and then ship goods back to the United States.
The dollar’s rally could also complicate the president-elect’s plans to spur oil drilling by reducing environmental regulations. Oil is usually bought in dollars. So the higher the dollar’s value, the fewer dollars are needed to buy a barrel of oil. The result is that the dollar-denominated price of oil drops.
When oil prices drop, energy companies tend to cut investment in drilling and production. Low oil prices are the main reason U.S. business investment plummeted late last year and in the first half of 2016, thereby slowing the economy. Oil prices have risen since Trump’s victory but could retreat again if the dollar keeps rising.
The Trump transition team didn’t respond to requests for comment.
William Cline, senior fellow at the Peterson Institute for International Economics, says he worries that the strong dollar could incite conflicts between the U.S. and its trading partners — something that happened during the Reagan administration in the 1980s.
Despite his reputation as a free trader, Reagan used tariffs against Japanese motorcycles and semiconductors, which had enjoyed a price edge in the U.S. market resulting from a sharp rise in the dollar. It took an extraordinary 1985 meeting at New York’s Plaza Hotel to craft an arrangement with Japan, Germany and Britain to reduce the dollar’s value and ease tension.
Trump, who threatened to tear up trade treaties and impose tariffs against Mexico and Japan, might be even quicker to impose sanctions against what he sees as unfair trade practices, potentially triggering a wider trade war. In an analysis it did before the election, the Peterson Institute warned that the United States could lose nearly 4.8 million jobs in a trade war that would result if Trump imposed the tariffs on Mexico and China — and they responded with equal tariffs of their own.
“The tricky thing in the case of Trump is if his administration sees trade deficits as the result of unfair trade” and not of economic forces that are pushing the dollar higher, Cline says. “You could get into a lot of trade conflicts.”
You missed my /sarcasm tag.
Chinese Bond Bloodbath Continues, Gold Up And Holding.
http://www.zerohedge.com/news/2016-12-19/everyone-nervous-chinese-bond-bloodbath-reawakens-hong-kong-stocks-turn-red-2016