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So, what's the reason for today's big move?
I'm going to stick my neck right out and go for something really parallel universe......Supply and Demand interaction.
By the by, I see JPM have had to ask HBSC for a lot of metal ozs as they are struggling a bit. Shame.
Now the 6 month GOFO has joined the 1/2/3 month in backwardation.
There's additional stress on the supply side.
Interesting article from Ted Butler. Even more interesting is that he says there is little risk of default at Comex.
Maguire is saying today that a default in LBMA or Comex is more than possible given the backwardation in Gold.
I see from the GATA site that the Bank of England refuses to be clear,accurate and accountable to the public for its own report of a reduction of 1,300 tons of gold between March and June.
This appears to be a repeat of the Gordon Brown affair in the late 1990s where excessive shorting of Gold by GS resulted in its potential insolvency and requiring Brown to sell a huge amount of the UK's gold at around $250 per oz. Brown at the time said there was no need to hold Gold as it was , to paraphrase,'useless.'
History may not repeat, but it rhymes. No, sorry, it does repeat.
The same thing is happening now. Mervin King and Mark Carney are bailing out the reckless shorting of gold paper by GS,HSBC etc at the LBMA to protect the dollar and the pound from collapsing.
So, now Rabo Bank has done an 'AMRO' and defaulted on gold delivery to its clients.
http://www.maxkeiser.com/
Alisdair MacLeod explains how the Bank of England has leased out 20% of its gold between end February and June this year.
Now we know for definite that the Central Bank of the UK spewed supply into the market to suppress the price in he April 12/15th smash and subsequent smashes.
Why don't you two love-birds get a room?
What do you mean ''soon' ? You said you thought 1200 by Friday?
Banro getting the Gold Star treatment following its terrific find recently.
IMHO the Hedge Funds are having their shorts squeezed.... (ooooooo momma)
I think you should consider the Q2 figures also, before you draw conclusions.
Up up and away in our beautiful ... you know the rest.
How's the short, Sparky?
Don't tell me. You got out of it right at the bottom.....
Looking at all the reports from different sources, it seems the bullion banks have covered their short positions in gold but the hedge funds have not, and the latter are getting a huge bear hug/squeeze/mauling of Grizzly proportions.
The fed won't like this rise in gold prices but I have little sympathy as it was the Fed which caused all the problems by trying to suppress gold to support the dollar and the Bond market.
It seems the rising bond yields are also now worrying the Fed but again, the Fed caused the problem by debasing the dollar.
It's unsurprising that bond buyers are seeking higher yields due to the horrifically huge expansion of the dollar supply.
Gold down, miners up.
Strange Days.
ps Yields on 10yr T-Bonds now scaring the bejabers out of the Fed.
Expect more Fed Men barking away during trading hours... lol
These increasing and sudden attacks on the Gold Price are taking place because the Fed recognizes that it is now losing control of the Bond Market.
Increasing yields are putting the Fed in an awful toxic position of their own making.
Call me Mr Conspiracy if you wish but I find it just too coincidental that there is a smash on the POG just hours before the US GDP figures are revised down to 1.8 apr for Q1 today.
Not very subtle is it.
It was interesting to read Andrew Maguire saying on King World News, Monday, that he was confident the 'historical bottom' for Gold was in last Thursday, the 20th June.
It just shows how,strangely, the 'experts' keep looking at charts whilst at the same time shouting quite loudly that the market is being hugely manipulated by Fed and Bank paper manipulation. I just cannot see how any chart can be helpful or even worth a glance where Supply and Demand is being skewed by interventionists like GS or JPM on behalf of the Fed.
It was (I thought so anyway) that the POG was very stable yesterday and hardly moved up or down.
The conspiracy theorists will probably suggest that Bernanke's hint of QE tapering last week was ill-advised and had the unintended consequence of sending the markets into free-fall for a few days and so some concerted gold-trashing was needed to take the sting out of that fall. A hit on gold was therefore ordered up on Wall St and delivered fairly promptly.
On balance the theory generally stands up to scrutiny.
In theory, lower production suggests price rises, but in theory eastern demand for physical means price rises and that hasn't happened. Currently I have slightly more confidence in TYO than the POG.
On that alone I agree with Buffers. Bonds are bad news and that etf might provide some salve whilst the POG continues to be beaten up.
'It aint gonna stay here' has been the cry since $1600
Unravelling in an upwards ,rising, kind of way.
Have they done so?
Gootta smile. My wife tells me she saw Buffett on tv yesterday morning saying that, in the current tricky circumstances, Gold is not the way to go.
Berkshire Hathaway hasn't got any Gold holdings as far as I can remember. The old Sage can talk his own book as good as any spoofer in the market. lol.
Do you think that America's creditors will let the USA just walk away from a US$ crash and burn?
Just let the US wash its hands of it all, and say 'Sorry. Tough" ?
I don't think so. China will want its money back and it will get it one way or another. So Washington will have to be very careful.
Starting again 'from scratch' is no going to happen.
Montanore "We must get rid of the Federal Reserve/Private banker chokehold on our money. They cooked up all the debt via their exclusive access to a printing press."
I'd gained a strong impression that politicians in government had 'cooked up' the debt by running increasing fiscal deficits over several decades and issuing government bonds to balance the books. International trading imbalances have not helped either. The Fed appears to have simply assisted Washington by printing dollars to pay the interest on the debt.
I'm not sure I'd use the word austerity either, but cut backs need to be made in significant numbers and politicians like to be out of office rather than in office when this is done, thus many of them are, I think, completely 'chicken' over doing it seriously.
Asia is buying gold. They don't like the US$ so much these days.
The USA is in bad shape debt-wise (so is southern Europe) but it's not complete perdition just yet. The trick is not raising the debt ceiling, but cutting back on spending. Big-time. It means everyone tightens belts, even the poorer sections of the community. As the USA is a consumer society it will drag other countries into the gutter because the USA will import less, so the contagion can still spread a bit more yet.
I would not rely on the Chinese to lend the USA even more. I think they've done their bit in relative terms.
No one is coming out of this very well except the ones who hold gold/gold-related stocks.
I like the way NUGT has been trending lately. Up another 4% today. Volatile as these 2x things tend to be, but a healthy situation.
It seems that on balance it's a good idea to run profits.
The dollar is in a trend which is not very attractive. Real interest rates aren't anywhere near troubling gold. Gold seems to be accelerating after the fiasco of the ceiling/spending cuts negotiations.
There seems to be a strong pull-back upwards this early morning.
Blackrock's latest report ie for June :
"A gold developer in the Democratic Republic of Congo in which the Fund has a small position performed strongly over the quarter on growing recognition of the size of their resources, as well as news that they might sign a joint venture with a Chinese partner."
ie Banro
And..... Blackrock Gold & General recently took a stake in Banro.
Kidding aside, I agree Banro is a good stock.
See Romarco
So, just to be clear... which gold mining company are you suggesting?
"Remember how the Bird Flu was going to kill us all?"
Nope. I do remember them saying that the very old ,weak, and the very young were vulnerable and that they were going to get a vaccine out pretty quick.
They said something like '..in the meantime sneeze in your elbow and don't shout your mouth off.'
Not everyone went along with that.
Yes, we can see that, too.
Personally I'm looking forward to seeing what happens when the new metal exchange opens in HK. Tomorrow should be interesting.
Where will the premier exchange be situated in future?
You know, seeing as how much millions of asian folks like gold.
Huge sales on Monday.
It's hard to see hwat might have been acheived by it. The price has rebounded strongly so if those sales were naked he's in trouble.
Could it be a bullion bank selling to buy in HK on Friday? Sort of ..give it a first day kick up? I don't know.
I must be insufficiently multi-talented. RBKissHisArseYouFirst will probably know.He seems to know most things.Including plumbing, the depths. lols
I think he was being ironic. You know... tongue in cheek.
Multi-talented people probably got it.
More multi-talented people had Banro, though.