HyperReport, Published on May 18, 2013
The Perth Mint’s Bron Suchecki writes: A number of bloggers have observed the difference between GLD’s gold stocks and SLV andstocks in response to the April price smash. Sharelynx is reporting the following changes over the past four weeks:
GLD down 3,031,042oz (-8.23%), current stocks 33,811,468oz
SLV down 341,111oz (-0.10%), current stocks 335,666,675oz
Sharelynx also tracks all the other major ETFs, COMEX, TOCOM, Sprott, BMG, Central Fund, Bullion Vault and GoldMoney reported stocks. The change in the total of all those over the past four weeks is:
Gold down 5,576,479oz (-6.12%), current total 85,565,264oz
Silver up 912,541oz (0.11%), current total 855,911,574oz
Whether you look at GLD vs SLV or total gold stocks to silver stocks, silver is basically holding even with gold taking a 6-8% hit. The explanation I think has a lot to do with who is investing in GLD vs SLV (or gold vs silver more generally).
The Chinese authorities have, for some time now, been talking about the desirability of moving their economy from being overly reliant on exports to one which has a significant domestic component of goods produced in China for consumption in China. The central authorities have wished rather publicly that more investment and bank lending was going in to domestic production and consumption and less into property speculation. But wishing, however fervently, has had little effect.
So news of what, if we dare trust Chinese government’s figures, would appear to be very large wage rises, seems to me to be very significant. As the Wall Street Journal reports today,
In an economy which is still quite heavily, centrally – if not planned and controlled, then certainly centrally meddled with – then such large and across the board wage rises would suggest a deliberate policy. I do not see these wage rises as the central authorities as losing control of wages but quite the opposite. I suggest that allowing wage rises is part of a policy of creating a consumer demand to be satisfied by domestic production.
goldsilverworlds.com / By Michael Noonan / May 18, 2013
We are going to start off with one of the most eye-popping pictures of just one central bank, the privately owned corporate Federal Reserve, and its purported gold holding. Occasionally, we drop a bit of history that most people either ignore or simply do not believe, but this one cannot be conveniently shunted aside.
One of the provisions in the FEDERAL Constitution, the 14th Amendment, [the original, organic Constitution had only 10 provisions, aka The Bill Of Rights], a hornet’s nest for an unsuspecting public, we our focus in on the one germane to the graph below. It is found in Section 4:
The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.
Now, who do you suppose created the public debt by loaning out, first money, then fiat, and now just computer entries?
Who do you suppose is responsible for it?
The question few people think to ask is, Who had it inserted? The NWO works in mysterious ways. but always lethal to the interests of the remaining 99.5%
Now, look below at the chart to get an idea of the magnitude of the outstanding debt that will never be repaid! We do not believe the gold holding claimed is accurate, [if any gold alleged to be held exists, at all], but we do believe the debt portion is accurately depicted. In fact, it has grown larger since December 2012.
My Dear Friends,
I started to read my incoming emails on the flight to LA, but soon stopped. Popular delusions and the madness of the crowd has its grip on 90% of the incoming mail.
The equities market has forgotten that even in hyperinflationary super bull equity markets there were sharp step reactions. The negative PR on gold has reached levels never before seen. A major internet based broker on Financial TV advertised it was time to sell or hedge all your gold positions immediately. That is history making when you consider no such public advertisement has been on the media before.
The pressure on gold has left us at JSMineset and our other colleagues on the internet as the only sources able to present the raw facts. Even amongst us there are employees of the Gold banks carrying on campaigns to cripple gold. I assume they are delighted today at our suffering as a rat that plays with its kill.
On the fundamental side there is no development that would suggest anything that is occurring with one exception, and that is QE, which must continue to Infinity or the West faces immediate economic collapse.
History will look back on this manipulation of every market on the planet and people’s reactions to it as not simply a bubble, but a frenzy.
Obama wants the investigation of the IRS misconduct to be limited to a congressional inquiry and an internal IRS report. Of course he does. Here’s who that would protect:
•White House assistants who improperly contacted the IRS
•High officials at IRS who acted on letters from senators
•The senators who sent those letters
At this writing there is significant evidence that the IRS misconduct was carried out in response to letters sent by at least eight Democratic senators demanding strict enforcement of laws governing tax free political organizations. And this occurred in an environment where Obama consistently attacked “tea baggers” and “groups with harmless sounding names.” (Kimberley Strassel, “The IRS Scandal Started at the Top,” Wall St. J., 5/17/23, A13) These attacks presumably set the presidential seal of approval on the improper action that was at least implied in the congressional letters.
What we need is a special counsel who will perform a step-by-step analysis of who wrote the letters, what they said, who they were sent to, what the receiver understood them to mean, what the receiver did with the letters, who was consulted, and what every person down the line knew, saw and did in response to the letters. And the investigation should not be confined to Democrats. It should consider any communication between the IRS, congress, and the White House, written or oral, Republican or Democrat.
armstrongeconomics.com / By Martin Armstrong / May 17, 2013
QUESTION: What is a cycle inversion? This reaction period of 2 to 3 years how do you know it will extend or not?
ANSWER: Cycles are turning points in time. You cannot always ascertain what the event will be a high or a low near-term. However, it is a turning point producing an event. Normally, you can predict it will be a high or low based upon the price action going into the event. Looking ahead even decades is sometimes easier.
Reactions have nothing to do with the magnitude of the change in trend. You peaked in September 1929 and bottomed July 1932 fulfilling the 34.4 (4 * 8.6) month cycle, which also produced a 3 year reaction. Look at gold for example. Where in 1980 it appeared that at the very least there would be a bear market for 5 years, the probability of a 19 year decline was quite high given how everything was set up in the broad spectrum of markets. Still, notice that the bulk of the drop was 1980-1982, which was the 2-year reaction, but the 3rd year was a high 1983. That was the kiss of death warning that an inability to rally beyond 1984 pointed to a 5 year bear market which it did on point for 1985. Gold then rallied with the decline in the dollar, but it was not making new highs in yen or dmarks. That signaled lower lows ahead and everything pointed to 1999.
caseyresearch.com / By The Casey Research Energy Team / May 17, 2013, 7:05pm
Like the United States, the European Union relies heavily on Russia and the Commonwealth of Independent States (CIS) for its uranium, as shown in the chart below:
Russia is projected to produce 64 million pounds per year by 2020. The majority – 40 million pounds – will come from Russia itself, and the remainder from its foreign projects in Kazakhstan, Ukraine, Uzbekistan, and Mongolia.
But there’s an often forgotten subsector of uranium production: the processes necessary to convert U3O8 into something that power plants can use.
For that purpose, yellowcake is first converted into uranium hexafluoride (UF6) at a conversion facility, then enriched, or concentrated, at an enrichment plant. Russia’s main conversion facility is at Angarsk, with a capacity of 42 million pounds of uranium per year. A small facility near Moscow, rated at 1.54 million pounds per year, primarily converts recycled uranium.
armstrongeconomics.com / By Martin Armstrong / May 18, 2013
Three regional Federal Reserve officials have called on the central bank to stop buying mortgage-backed bonds, citing the recent improvement in the U.S. housing market. Indeed, the US economy has improved and the rise in the stock market has the talking head talking to themselves in disbelief. The 800 pound monkey remains the German elections and this is not going well. Whatever the politicians in Europe can do to screw up the world they are going perfectly. We are at the edge in the middle of nowhere. Old Marxist ideas dominate the political circles and they cannot see that just as Communism collapsed, it is their turn now. The younger generation are out of work and not buying this nonsense of taxing the rich that does nothing but line the pockets of politicians. This is going to take a lot more pain before we see political reform.
The dollar MUST rise sharply OVERALL between now and 2015.75. This is what we need to reverse the economic fortunes of the US so the entire global economy then turns down 2015.75-2020.
Rising star of the independent investment commentators Mike Swanson explains why he has just been buying gold and silver stocks. It’s a contrarian view with a recovery from the lows of the recent crash in gold and silver prices. Undervalued sectors offer the best investment opportunities, not chasing momentum.
The real risk out there for investors is the bubble building in US stocks, think Nasdaq crash in 2000, not missing the US economic ‘recovery’ that is about to tank. How will gold and silver stocks fare in a crash? Well they simply do not have anything like the downside of other stocks right now, and if gold comes back as a defender against monetary inflation then the shares will deliver a multiple to the upside of the gold price, and silver will do much better…
acting-man.com / By Pater Tenebrarum / May 17, 2013
JGB Rallies Back to Former Support – And Turns Down
We may just have seen what is known as a ‘good-bye kiss’ among technical traders in the JGB market. The JGB contract rallied back to its former lateral support at the 143 level overnight and then turned back down from there. Below is a chart illustrating the action. We hasten to add that it is still too early to call this a definitive breakdown, but it is something we are watching closely. We continue to believe that the whole world should keep its eyes glued to this market – it is the most likely source of trouble for the current ‘happy consensus’:
JGB, one hour chart: a classic ‘good-bye kiss’?
zerohedge.com / By Tyler Durden / May 17, 2013, 21:16 -0400
The following map (via AON) measures the risk of political violence to international business in 200 countries and territories, based on three icons indicating the forms of political violence which are likely to be encountered: Terrorism and sabotage; Strikes, riots, civil commotion and malicious damage; and Political insurrection, revolution, rebellion, mutiny, coup d’etat, war and civil war.
peakprosperity.com / By Adam Taggart / Friday, May 17, 2013, 12:12 PM
Everyone knows the odds of winning in a casino are worse than 50% (often much worse depending on the game played). So who wouldn’t rush to a casino where, instead, the odds were overwhelmingly in the gambler’s favor?
That’s the promise of today’s stock market, which has been experiencing an aberrantly high percentage of up days all year. Toss your money into the market and on any given day, you’re much likelier to make money than not.
So far, May 2013 has been a gambler’s paradise, in which a whopping 76.9% of the trading days for the S&P 500 have been up:
zerohedge.com / By Tyler Durden / May 17, 2013, 20:14 -0400
Europe’s non-performing loan problem is such an issue that there is increasing bluster that the ECB may take this garbage on to its balance sheet since policymakers realize that bad debts and non-performing loans (NPLs) reduce the capacity of banks to lend, hindering the monetary policy transmission mechanism. Bad debts consume capital and make banks more risk averse, especially with respect to lending to higher risk borrowers such as SMEs. With Italy (NPLs 13.4%) now following the same dismal trajectory of Spain’s bad debts, the situation is rapidly escalating (at an average of around 2.5% increase per year).
kingworldnews.com / May 18, 2013
Today 50-year veteran Art Cashin warned King World News that money supply is now going parabolic and may cause problems for the Fed and also create explosive inflation. Cashin, who is Director of Floor Operations at UBS ($650 billion under management), also spoke about John Paulson and others positioned in gold.
Eric King: “Art, you brought up the Fed and the distortion in the markets. What about the Fed distorting the markets and is there a danger of something like the 1987 stock market crash coming out of all of this?”Cashin: “You are in uncharted territory in many ways. This is what the ancient mapmakers would call, ‘Terra incognita, or ‘Land unknown.’ That is why you see people like John Paulson, brilliant, made more money than just about anybody in the housing collapse, and he’s long gold and handcuffed and tied in.READ MORE
streettalklive.com / By Lance Roberts / Friday, May 17, 2013
I have often spoken of the disconnect between Wall Street and Main Street. While asset prices are inflated by continued interventions of monetary policy from the Federal Reserve, boosting Wall Street profits and widening the wealth gap between the top 20% of Americans and the rest, “Main Street” continues to suffer a from a rising cost of living and falling wage growth. Just recently Gallup released the following survey:
The problem is that as the cost of living rises over time due to the effects of inflation – median household incomes have fallen. The following chart shows the seasonally adjusted median household income through March of 2013 as compared to Gallup’s poll of family living needs
kingworldnews.com / May 18, 2013
Today whistleblower Andrew Maguire told King World News how the major bullion banks are about to exploit the gold and silver markets. Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” also discussed what key players such as hedge funds are doing with their own trading accounts right now. Here is what Maguire had to say in part II of an extraordinary series of interviews to be released today.
Maguire: “I see these lines crossing against both the official and bullion bank selling, and I see it crossing very soon. That’s why I believe they (the bullion banks) are likely net long, having taken the other side of this hot (short hedge fund) money….
Ryan Puplava: Cyclical Rotation – The “Taper Trade” Is On, Defensive Stocks Are Off
Also, Ryan with the Market Wrap-Up, Erik Townsend on Commodities, and Rob Bernard on Fixed Income
Ryan Puplava does double duty this week, giving his technical analysis on the markets as well as his weekly Market Wrap-up. Technically, Ryan sees a cyclical rotation of stocks into what he refers to as The Taper Trade, and out of more defensive stocks such as health care and utilities. Ryan is bullish on energy and copper as they are tied to more robust economic activity. Ryan also discusses bonds, gold and currencies. In addition, Erik Townsend looks at Commodities and Rob Bernard has the Fixed Income Report.
Jim Puplava’s Big Picture: Game of Thrones – The Dollar vs. Gold
Also, “Forget a QE Exit Plan – Serial Money Printing Is the Wave of the Future”
The first Big Picture topic this week is “Game of Thrones – the Dollar vs. Gold”. Jim looks at the massive global currency debasement among central banks, and in that current game the dollar is king. Gold is in the background and not a major player. Jim believes this will not last, but for now the dollar is winning the game. The next topic, “Forget a QE Exit Plan, Serial Money Printing is the Wave of the Future”, Jim notes that 14 central banks around the world have cut interest rates, and are printing money with no exit strategy in sight. He notes that the next Fed Chairperson, widely assumed to be Janet Yellen, will make Ben Bernanke look conservative when it comes to money printing.
Jim Puplava’s Big Picture: The Petro Business Cycle Equals The New Normal
The Price of Oil Is Impacting Monetary Policy
In this segment of the Big Picture, Jim looks at how the price of oil has affected the economy and growth over the past three years, and how his concept of the Petro Business Cycle looks like it will be the “New Normal” in the years ahead. He also references recent interviews with oil experts Dr. Robert Hirsch and Dr. Oliver Inderwildi who concurred with his analysis on the Petro Business Cycle. Jim also answers your Q-calls in this segment of the program.
silverdoctors, Published on May 18, 2013
acting-man.com / By Pater Tenebrarum / May 17, 2013
Full Court Press
Not a day passes without the financial media denouncing gold as an investment option and hailing the bureaucrats heading the world’s monopolist monetary central planning agencies as superheroes. It began prior to gold’s recent breakdown, with widely cited bearish reports on gold published by Credit Suisse and Goldman Sachs, among others. Never mind that most of their arguments were easily unmasked as spurious. It should be no wonder though: gold’s rise was the most conspicuous evidence of faith in central banking being slowly but surely undermined. The banking cartel relies on the fiat money system remaining intact; the legal privilege of fractional reserve banking provides it with what is an essentially fraudulent profit center unparalleled by any other in the world (fraudulent in terms of traditional legal principles, but not in terms of the current law of course). Not surprisingly, ever since the completely unrestrained fiat money money system became operational in the early 1970s, the financial sector’s share of corporate profits has inexorably risen and finally eclipsed all other sectors of the economy.
In other words, the banks have to protect a major franchise. It is a good bet that if gold had continued to rise in the face of money printing being accelerated all over the world, the inevitable loss of faith in central banks would have happened sooner rather than later. That it will eventually happen is unavoidable – the modern monetary system was fated to self-destruct the moment it was conceived. This is so because central planning and price controls cannot work in the long run, even though central banks are socialistic institutions adrift in a capitalist sea, so to speak. They can to some extent observe prices in the market, but the problem is that the market price most relevant to them – namely the ratio of future against present goods as expressed in interest rates on the credit markets – is not independent of their actions. There is therefore nothing that can tell them whether their administered interest rates are too high or too low. It is a system that is condemned to fail at some point (unfortunately with grave consequences for the economy at large).
libertyblitzkrieg.com / By Michael Krieger / May 17, 2013
I’d like to say that the following is unbelievable, but it’s not. Unfortunately, it is all too believable. From ABC:
The Internal Revenue Service official in charge of the tax-exempt organizations at the time when the unit targeted tea party groups now runs the IRS office responsible for the health care legislation.
Sarah Hall Ingram served as commissioner of the office responsible for tax-exempt organizations between 2009 and 2012. But Ingram has since left that part of the IRS and is now the director of the IRS’ Affordable Care Act office, the IRS confirmed to ABC News today.
acting-man.com / By Pater Tenebrarum / May 17, 2013
It Was to Be Expected …
As we have frequently pointed out in past articles on Bitcoin, the biggest danger to the currency was always government. The currency challenges the State’s money monopoly, even though it does so only in a minor way so far, and even central banks have taken notice. As we pointed out in a previous post, the ECB for instance worries that ‘Bitcoin may undermine confidence in central banks‘ (in this article we have listed all the reasons why one should expect governments to attempt to crush the currency). In other words, Bitcoin is seen as unwanted competition by the money monopolists.
It started out with a concerted attack by the handmaidens of the State, the banking cartel, on the viability of Bitcoin exchanges (which incidentally reminds us a bit of the recent attacks on gold). Many banks simply closed down the accounts Bitcoin exchanges held with them, which linked Bitcoin trades to other currencies. As far as we’re aware, in most cases no reasons were supplied as to why these accounts were closed down – it wasn’t necessary to supply them. Everybody knows what it’s about, so making up spurious reasons would only expose the banks concerned to ridicule.
zerohedge.com / by Tyler Durden / 05/17/2013 19:13 -0400
Those who were closely following the S&P cash in the last seconds before the close, and who were eagerly looking forward to a satanic close of 1,666, were likely disappointed when in the last 5 minutes of trading the cash index ramped from 1,665 and easily crossed in and out of 1,666, with the final print pointing to a mid-1,667 close.
And then something happened: instead of a closing print of 1,667.50, over one point of the cash S&P suddenly was wiped out for no reason, in turn leading to the satisfactory 1,666 closing print or exactly 1,000 points higher than the “generational” lows of 2009. Yet, refreshing the settlement of the S&P500 an hour later, showed that the final closing price was, indeed, 1667.47.
shtfplan.com / By Mac Slavo / May 17th, 2013
Were you to look at official government statistics that calculate our rate of price inflation for food, energy, clothing, and other consumer goods, you’d think that prices were as stable today as they were under the gold standard.
According to the Bureau of Labor and Statistics, the CPI (Consumer Price Index) inflation rate remains well below the Federal Reserve’s 2.5% threshold. Insofar as the government is concerned America’s core inflation rate is just 1.7%, a testament to the economic prowess of our central bank and Chairman Ben Bernanke.
And because there is no significant price rise being realized in consumer goods based on the government’s calculations, the millions of Americans dependent on disbursements like social security, disability assistance and nutritional food support will see no adjustments to their monthly stipend. And why would they? Prices aren’t rising!
Or are they?
According to Peter Schiff, who is well known for his dire economic warnings leading up to the crash of 2008, the government is involved in a wide array of manipulations and fuzzy-math in an effort to convince us that the price increases we’ve seen in stores, restaurants and gas stations over the last decade are merely a figment of our imagination.
libertyblitzkrieg.com / By Michael Krieger / May 17, 2013
Nothing says recovery like citizens in debt setting themselves on fire due to economic hardship. In this tragic case, Antony Breeze self-immolated after being preyed upon by payday lending companies that began to harass his father. Similar stories are sure to reach U.S. shores before too long, particularly considering how TBTF domestic banks are partnered up with payday loan companies charging up to 500% interest. From the Daily Mail:
A debt-ridden father doused himself in petrol and turned himself into a human fireball after being harassed for money by payday loan firms.
Antony Breeze, 36, died after setting himself alight, telling passers-by who tried to extinguish the flames: ‘I’ve had enough.’
therealasset.co.uk / By Jan Skoyles / May 17, 2013
On the 12th and 15th April gold fell victim to a price smash.
Why this happened is something which is open to much analysis and theorising. For the mainstream media it was down to an improving global economy and the need to hold gold no longer existed, for those in the world of gold investment this was perhaps down to more of the politics behind the gold-market than the economics.
On April 12th 3.4 million ounces (100 tonnes) of gold was sold in the US futures markets. This was just for starters, the main, side and dessert appeared over the following hours and the next session on the Chicago Mercantile Exchange (COMEX).
Reacting to the gold price smash
As those in the West holding paper gold stood frozen watching the price tick further downwards, those in the East and others looking to buy physical gold, went on a shopping spree. Premiums on physical gold in China, India, Vietnam and across Asia hit highs associated with economic and geopolitical crises. Dealers struggled to keep up with demand.
In the four weeks to April 24th reported inventories of ETFs, funds, and futures market depositories collapsed by over 5.5 million ounces ($7 billion).
The largest physical removals were reported by the COMEX of 1.4 million ounces and the SPDR Gold Trust (GLD), which reported total inventory removal of nearly 4 million ounces.
In their Q1 report, the World Gold Council referred to the ‘dichotomous nature’ of the gold market – this is clear as the paper gold market continues to tell a different story to the physical market.
sunshineprofits.com / By Przemyslaw Radomski / May 17, 2013
The latest World Gold Council Gold Demand Trends report shows that the gold market is driven by diverse global demand, and the appetite for owning gold jewelry, bars and coins continues to grow.
“The price drop in April, fuelled by non-physical moves in the market, proved to be the catalyst for a surge of buying that has left many retailers short of stock and refineries introducing waiting lists for deliveries,” said Marcus Grubb, Managing Director of Investment at the World Gold Council. “What these figures show is that even before the events of April, the fundamentals of the gold market remain robust with; growing demand in India and China, central banks consistently adding gold to their reserves and strong buying of investment products such as gold bars and coins.”
The report, for the period between January-March 2013, shows that total jewelry demand was up 12% year-on-year in Q1 2013, driven mainly by Asian markets. For example, jewelry demand in China was up 19% on the same period last year and stood at a record 185 tons. Demand in both India and the Middle East was up 15% respectively and in the US, demand showed a significant increase, 6%, for the first time since 2005.
Demand for gold in China and India was also fuelled by an increase in bar and coin sales – up 22% year-on-year in China and a whopping 52% in India. The US also saw a growing hunger for bars and coins– up 43% compared with the same quarter in 2012.
traderdannorcini.blogspot.ca / By Dan Norcini / Friday, May 17, 2013
Gold has come off of one horrific week in terms of price action. As noted on the price chart, the metal pushed into the region where it recently had its LOWEST CLOSE in some time. You might recall that after the spike down towards $1320, physical demand was unleashed in what can only be described as a torrent. That demand spooked bears and resulted in a wave of short covering that took price nearly $160 off that low. It was at that point that the big selling re-entered.
The resistance at $1485 – $1475 proved to be a bridge too far and down went the metal. It encountered some decent buying near $1440 but once that gave way, especially once $1420 collapsed, sell stops did the rest. Once it lost its “14″ handle, many buyers stepped back, expecting that downside momentum would enable them to acquire the metal even cheaper.
I am now watching to see whether or not this market can hold support down at the shaded rectangle I have marked on the chart. Personally, I am welcoming this move back to that recent low because I want to see how it now responds. I do not like buying into markets with spike lows or selling spike tops mainly because the risk/reward can be too great based on the entry point and the exit point that tells you that the trade has soured. A test of a low, that holds is a much better entry point with lower risk. The flip side to this is that if $1320 fails to hold, it will confirm that bearish flag formation noted on the chart with a potential price projection down closer to $1100. Yikes!
Copyright © 2013 Silver For The People – The Blog - All Rights Reserved
Powered by WordPress & Atahualpa