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Kevin, if there is anything that I have learned about the power of the oil magnates is that they are the most greedy people on the face of the earth. This statement is manifested in the fact that the oil CEO's receive as much as $400,000,000 each year in compensation plus a $50,000,000 Christmas bonus that the Exxon CEO received. Once they get their hands on your money they are very reluctant to let any of it go.
Today gold closed down $5.70 at $794.70 and silver closed down .13 at $12.76. So far this week gold is down $27.50 and silver is down .57.
Today gold closed down $4.50 at $800.40 and silver closed down .16 at $12.89. So far this week gold is down $21.80 and silver is down .44.
Right Kevin. But it should be expected during the summer months. It was worse than I thought that it would be though.
Today gold closed down $25.00 at $804.90 and silver closed down .54 at $13. 05.
Kevin, the banks are continuing today even in the face of pending law suits. Gold is now down $38.60 and silver is down $1.05.
This morning India and other countries are buying gold due to the sharp drop but gold is still going down. Gold is currently down $33.30 and silver is down .88.
Good morning Kevin. The following is for anyone who believes that the precious metals are not being manipulated. The entire article, which is a little long, is currently posted on the main page of Kitco.
A very few and very large banks seemed to have positioned very well ahead of the plunge in prices for gold and silver, but in the process they may have bought more than they bargained for – possible class-action lawsuits.
HOUSTON (ResourceInvestor.com) -- An internet firestorm erupted over an August 5 report issued by the Commodities Futures Trading Commission (CFTC) which report revealed an unprecedented exponential one-month spike higher in short positions in gold and silver futures reported by two U.S. banks in silver and three U.S. banks in gold. Investors and bullion dealers may band together to seek legal recourse against the thus far unnamed banks.
In that CFTC report it surfaced that those few banks took the huge net short positions in gold and silver futures just ahead of the largest and harshest fall in prices for gold and silver since the Great Gold Bull began in 2001 – 2002. The Got Gold Report covered it from the silver point of view earlier this week.
Sucker Punched
Speculation in the metals community since the issue was first raised by silver analyst Ted Butler on August 22 has centered around whether the few banks acted principally to profit by their own downward trading pressure after taking the extremely large short positions, or if those very large net short positions could have been legitimate positions put on as offsetting hedges to other over-the-counter trading positions, swaps and derivatives held by the very large banks.
Subsequent work done by independent analysts point to specific banks as the most likely actors responsible for the immense short positions. As examples, (and there are more), Rob Kirby of Kirby Analytics in Toronto opined that the action is likely the work of the U.S. Federal Reserve in concert with J. P. Morgan Chase in an August 25 piece on FinancialSense.com. Tom Szabo of Silveraxis.com researched FDIC Quarterly Banking Profiles and Call Reports and concluded the most likely “usual suspects” were J.P. Morgan Chase and HSBC. Investors keenly interested in this subject will want to read Rob and Tom’s comments carefully.
Since we’ve already looked specifically at silver in the previous Got Gold Report, this report looks closer at the gold positioning. The three unnamed U.S. banks went from holding long positions for 538,100 ounces of gold in July to holding short positions for 8,222,800 ounces one month and four days later. That’s a huge change in positioning for just three trading entities. (From $448 million dollars worth long to $6.8 billion dollars worth short if we value gold at $830.)
Today gold closed up $7.50 at $833.70 and silver closed up .20 at $13.66. So far this week gold is up $11.50 and silver is up .33.
It's that time of the year. It is just taking place a couple of weeks before I expected.
Today gold closed up $2.10 at $826.20 and silver closed down .11 at $13.46. So far this week gold is up $4.00 and silver is up .13.
Today gold closed up $2.70 at $824.10 and silver closed up .10 at $13.57. So far this week gold is up $1.90 and silver is up .24.
Today gold closed down .80 at $821.40 and silver closed up .14 at $13.47.
Kevin, your calculation is a little off. PM's are measured in troy ounces. There are 14.583 troy ounces in a pound. That would make it about 685 pounds. Still heavy, lol.
Today gold closed down $13.40 at $82.20 and silver closed down .50 at$13.33. For the week gold is up $36.20 and silver is up .63.
Kevin, you would be surprised how much silver that you can get in a small safe. I had 10,000 ounces in about one cubic foot but it was solidly packed.
Kevin, to each his own. I prefer to hold physical silver. And buying at $13 to $14 an ounce should not be out of the question. Silver has many miles to run and is just getting started. We cannot let the manipulators force us out of the market. Silver is still a scarce industrial metal.
I believe that SLV is safe but I still prefer physical silver.
I'm going out on a limb on this one but I see J P Morgan/Chase in terrible financial condition with over two trillion in derivatives. It would not surprise me if they went under.
Langlui, believe it or not, the oil industry is also a manipulated market. I remember in the early seventies when long lines of cars would be waiting to get gas at service stations around the country. The major oil companies broke the independents with this false gas shortage. After breaking the independents the majors would go in during the night and fill the underground tanks and use them for storage. I happened to witness this happening while taking a late night walk. A tanker was filling the tanks of a station that had gone broke a few months earlier. I do not study the crude oil market like I do the precious metals so I have no idea where the price is going.
With precious metals, every summer for as long as I can remember the prices of gold and silver drop during the summer vacation months and then rally during the last four months. I still believe that there is a very good chance that silver will hit $20.00 an ounce by the end of the year. Also look for at least two more major financial institutions to fail or be taken over by the end of the year with Lehman Brothers being one of them.
Today gold closed up $22.80 at $835.60 and silver closed up .58 at $13.83. So far this week gold is up $49.60 and silver is up $1.13.
Exactly, Kevin. That is why all my gold and silver investment is in bullion that is in my possession.
Thanks Kevin. I bet that it will take at least two months before delivery of 1,000 ounces or more. I would like to hear from anyone that is ordering or has ordered.
Today gold closed down .90 at $812.80 and silver closed up .01 at $13.25. So far this week gold is up $26.80 and silver is up .55.
KiwiSteve, I am familiar with Iggy and occasionally read articles by Ted Butler. I believe that he knows more about silver than anyone in the US. I also believe everything that he said in that article. Thanks for bringing it to my attention. I was a little surprised that he used the same word that I used about a week ago, "springboard", which is what I used to describe the current drop in the price of silver and what it was creating.
The one problem that I see with what he says is that I cannot find any dealer in my area that has any silver. It takes two months for delivery and then it sometimes will not materialize. I have a lot more silver than all of the dealers combined that I checked. My favorite dealer offered me above spot for about 2,500 one ounce rounds that I have. I declined to sell of course. I hope that you are successful in finding what you may be looking for but it does not look good.
Jerry
Today gold closed up $15.00 at $813.70 and silver closed up .21 at $13.24. So far this week gold is up $27.70 and silver is up .54.
Kevin, the lease rates are back down again this morning. I stopped watching them for a while because they are so erratic and do not indicate any kind of PM movement as they have done in the past.
Today gold closed up $12.90 at $798.70 and silver closed up .33 at $13.03.
I believe that David Morgan is right. Remember, we still have over four months to go and it is traditionally the best for months for the precious metals. Sometimes the carnage that you mentioned can create a springboard.
Gold and silver has turned the corner in Japan. Gold is currently up $7.90 and silver is up .48. This is a little earlier than I expected but I will wait and see what the NY market does.
Today gold closed down $19.70 at $786.00 and silver closed down $1.44 at $12.70. For the week gold is down $69.50 and silver is down $2.57.
Kevin, it has already gone well past the point that I thought it would. I believe that it has a lot to do with the unprecedented strength in the US dollar. In the past four weeks the euro has lost over .13 against the US dollar and the Canadian dollar has lost about .06.
Today gold closed down $20.00 at $805.70 and silver closed down .73 at $14.14. So far this week gold is down $49.80 and silver is down $1.13.
Silver is currently down over $3.00 in less than three weeks.
That is a good philosophy for a frequent trader although it is a little different this summer. Gold and silver peaked during the 2nd week of July with gold closing on 7-11-08 at $964.60 and silver closing on that date at $18.84.
Today gold closed up $14.90 at $825.70 and silver closed up .40 at $14.87. So far this week gold is down $29.80 and silver is down .40.
Right, Kevin. Last week was a five figure loss but I'm never concerned about losses during the summer months. There will be a lot of volatility until after the 1st of September.
Kevin, gold closed down $32.50 at $823.00 and silver closed down .63 at $14.64. Gold dropped 3.8% and silver 4.13%. This is the most volatile that I have seen gold and silver since 1980. This is setting up a springboard for the precious metals in the last quarter of this year.
Author: Jim Sinclair
Dear Friends:
What definitions and explanations can be derived from the gold and Euro action last week? Here they are:
1. The intervention without any doubt has established that gold is a currency. Because the Euro will trade at $2 or more before this drama has finally ended, gold is guaranteed to follow - probably in multiples of the Euro?s action.
2. In hindsight, intervention started when the Euro was at $1.5975. This reveals the point above which no intervention can have any appreciable impact. That level is $1.6025 three times for 24 hours in a row.
3. Paulson?s desire not to remain Secretary of the Treasury says that any plan currently in place will play out in 161 days at the most. That does not say that current markets have a 161 life but rather that everything between now and day 161 is short term, camouflage, spin and inherently weak from a market perspective. Paulson's decision not to remain in this most prestigious financial position speaks to the degree of danger that the psychologist-packed Plunge Protection Team (PPT) has worked so diligently to keep mass perception from being focused upon.
Summary:
Everything remains the same but the fear factor has increased. What's happening in the stock market at the moment is no more than another bear market rally in which the purchase of index puts on the Rhino (when the market appreciation resembles a Rhino horn) makes sense.
Gold will rise to $1,200 possibly 90 days later than anticipated. Gold will trade at $1,650 or more before the second week of January 2011. The US dollar will trade at .62 USDX and after great efforts to stop the decline trade at .52 USDX. Black Boxes are primarily momentum driven so keep an eye on that fact in terms of the US dollar versus the Euro.
I believe that Kitco is having problems. All lease rates in gold and silver are now shown to be down from two to over three percent which puts all lease rates deeply in the negative.
Kevin, today gold closed down $16.80 at $855.50 and silver closed down .91 at $15.27. For the week gold is down $54.20 and silver is down $2.18. The euro is down 5.5 cents and the Canadian dollar is down 3.6 cents against the US dollar. I have never seen a drop of this magnitude since the beginning of the euro.
Kevin, 15.30 should be the low but the summer months are extremely hard to call. All we know is that every summer, until about the 1st of September the precious metals will be lower.