• Gold and Silver Will Protect From Coming Financial Crash – Rickards

    Gold and silver coins will protect from the coming financial crash – James Rickards, author of The Road to Ruin told Sean O’Rourke in a must listen to RTE Radio interview this week.
    Rickards is the best selling author on finance and money and advises the US intelligence community on international economics and financial threats.
    His advice to people with savings or investments to protect from the coming crash? Buy gold and silver coins.

    This post was published at Gold Core on December 2, 2016.

  • Australian Man Withdrew $2.1 Million thanks to Bank Error and Wins Fraud Appeal

    Luke Brett Moore withdrew $2.1 million over 50 transactions thanks to a system error. He spent the free money on exotic cars, a power boat, paintings, jewelry and a framed Michael Jordan jersey.
    Last year, Mr. Moore was jailed, and convicted of fraud for deceiving his bank, according to the Sydney Morning Herald.
    ‘Not guilty :)’ Mr Moore wrote in caps lock on Facebook.
    At the age of 22, the Goulburn Australia man signed up for a bank account at St George Bank.
    His first depost of $441 came from Centrelink. The account, which let him withdraw cash even though there was no money it, let him to into the negative of $2 million by August 2012.

    This post was published at GoldSilverBitcoin on DECEMBER 2, 2016.

  • Multiple Jobholders Hit New All Time High As Part-Time Jobs Soar

    While today’s headline jobs number was essentially Goldilocks, with the payrolls print missing the expected print of 180K by just 2,000 jobs, it was accompanied by a plunge in the unemployment rate to 9 year lows as a result of a jump in the number of people leaving the labor force, and rising to a new all time high of over 95 million. But while the quantitative headline aspect is open to interpretation, the qualitative component of the November jobs print was – just like in the case of October – quite clear: it was ugly, again.
    Recall that in October, the Household Survey revealed that the number of full-time workers tumbled by 103,000 as part-time workers jumped by 90,000. The trend continued in November, when another 118,000 part-time jobs were added, paired with a far more modest 9,000 increase in full -time jobs.
    The divergence is even uglier when looking at the non-seasonally adjusted jobs, i.e., real change: here we see a drop of 628,000 full-time jobs in November, offset by a surge in 678,000 part-time, mostly retail jobs.

    This post was published at Zero Hedge on Dec 2, 2016.

  • Where The November Jobs Were: Accountants, Nurses, Waiters, Government And Part-Time Workers

    Something remains very broken with the US labor market: while the unemployment rate just dropped to the lowest since August 2007, wage growth dropped as well and on a year over year basis, rose just 2.5%, far below the 3.8% it was when the unemployment rate last hit 4.7%. This continues to vex economists who have vowed that if only one lowers the unemployment rate far enough, all the slack in the labor market will be soaked up. Alas, that is not happening, for several reasons, the chief of which is that the quality of jobs added remains subpar, with wage growth – especially for less than “supervisory” and management positions – declining. Furthermore, as noted earlier, both part-time jobs and multiple jobholders have been surging in recent months, ostensibly as a result of Obamacare pressures.
    Still, according to the BLS at least, some 178,000 seasonally adjusted jobs were added in November, arbitrarily goalseeked as they may have been. Where were they? Here is the answer:
    The most actively hiring sector was “Professional and business services” where employment rose by 63,000 in November, with accounting and bookkeeping services adding 18,000 jobs. Employment continued to trend up in administrative and support services, ( 36,000), computer systems design and related services ( 5,000), and management and technical consulting services ( 4,000). Health care employment rose by 28,000 in November. Within the industry, employment growth occurred in ambulatory health care services, i.e. nurses ( 22,000). As expected, the “Waiter and bartender” recovery continued, with 18,900 “food service and drinking places” jobs added.

    This post was published at Zero Hedge on Dec 2, 2016.

  • Market Report: Precious metals heavily

    Gold and silver traded modestly lower this week in the face of a strong dollar. The strains faced in currency markets are extreme, building up to a crisis, particularly for the euro. More on this below.
    Gold, as of morning trading in Europe, lost a further $13 over the week, and silver $0.14. The technical bears are out in force, making up stories forecasting the death of gold and silver, based on the following chart.
    This is a bear’s delight, with a death cross of the two most followed moving averages, and the gold price seemingly sliding into oblivion. Articles predicting lower prices still predominate, but the pace of the fall has in fact slowed. There are good reasons for this, which are illustrated in the next chart.
    Gold’s open interest on Comex has collapsed from a peak close to 660,000 contracts to about 400,000. This represents the destruction of paper gold equivalent to 800 tonnes. It’s a similar story for silver, destroying the equivalent of 10,000 tonnes. The losers are the speculators, and the winners are the bullion banks. We can dismiss the speculators as ephemeral dealers, but it’s worth seeing things from the bullion banks’ point of view to understand their motivations.

    This post was published at GoldMoney on DECEMBER 02, 2016.

  • Oil Dips After Former Saudi Oil Minister Admits On OPEC Deals, “We Tend To Cheat”

    Not really surprising anyone, former Saudi Arabia oil inister Ali Al-Naimitold a forum in Washington that it “remains to be seen” if the OPEC deal is successful, noting that the “market is set to rebalance if everyone cuts production” but added “we tend to cheat.”
    Having been replaced in May, former Sauid oil minister Al-Naimi had plenty to say today…

    This post was published at Zero Hedge on Dec 2, 2016.

  • The Aftermath of the US Election And Its Implications Moving Forward

    The nomination of Donald Trump triggered a major see-saw reaction in the stock market.
    The S&P 500 immediately capsized 4% before recovering and surging 3%.
    A similar swing in the market was triggered by Brexit for the same exact reasons… nobody was positioned for it.
    That means the current surge in the market (up nearly 5% since the election) is an overreaction that will reverse.
    You see, the market was positioned for gridlock before Trump’s nomination. Congress was expected to be split between a Democratic Senate and a Republican House of Representatives.
    That meant regardless of who won, the White House would face constant battles with no real progress to get done.
    But that’s not how it played out. Instead, the Republicans swept all three branches. And can now enact any policy it chooses (if it so chooses.)
    This was the scenario nobody expected.
    However, those that receive my Moneyball Trader newsletter (see below for more information) knew the market would play out this way. Here’s what I said before the election:

    This post was published at FinancialSense on 12/02/2016.

  • Ted Butler Quote of the Day 12-02-16

    “There’s no question that the market structure is still improving, but the big question is how much more to go? I still think there’s not much more to go, but that will only be known in hindsight, after the price bottom has been recorded. In the interim, new prices lows can be made. Also, even if we are at or close to the bottom (as I believe), there is no way of determining in advance how long before the rally begins. Given all the facts and what’s transpiring in other markets, it wouldn’t seem the wait for a rally in gold and silver would be terribly long. More important, of course, is the nature and extent of the coming rally and the current low level of risk in holding silver positions.

    A small excerpt from Ted Butler’s subscription letter on 30 November 2016.

    More precious metals news & information available at
    Ed Steer’s Gold & Silver Digest.

  • Global Stocks, Futures, Commodities, Dollar Fall Ahead Of Payrolls, Italy Vote

    Did Jeff Gundlach do it again? Shortly after the DoubleLine manager told Reuters yesterday afternoon that the Trump rally is ending, that “stocks have peaked” and that it is “too late to buy the Trump trade”, US stocks tumbled to session lows, and have continued to drop overnight, with S&P futures down 0.3%, alongside sliding Asian and European markets; oil and the dollar are also down with the only asset class catching a bid are 10Y TSYs, whose yields are lower at 2.43% after reaching an 18 month high of 2.492% overnight ahead of today’s nonfarm payrolls report. The dollar was on course for its first weekly decline in four weeks as investors trimmed bets following recent gains.
    However, the big risk event is not the job report, but Sunday’s Italian referendum, which has cast a blanket of concerns over Europe, and especially its banks, and has prompted financial markets to end the week the way they started, “overshadowed by caution as stocks fall with commodities, the yen advances and a selloff in Treasuries abates” in the words of Bloomberg.
    ‘There is a great deal of trepidation among investors ahead of the vote,’ said Ken Odeluga, a market analyst at brokerage firm City Index in London. ‘Even though we got a bounce yesterday after the OPEC agreement, there is still a huge amount of interest on the earish side and shorts in place. It’s the focus for Europe, and we are going to see more selling out of equities if we get a negative outcome. There is certainly room for more volatility.’
    Recent strong economic data from the U. S., including upbeat manufacturing activity and construction spending, have bolstered the view that the Fed will tighten monetary policy faster than expected to keep inflationary pressures in check. U. S. employers probably hired 179K workers in November, up from October, making it almost certain that the Federal Reserve will raise interest rates later this month. However, recent jitters that the ECB may announce a tapering of its own QE program next Thursday has become a bigger source of worry for markets than the Fed’s second rate hike in over a decade.
    Today’s payroll number therefore comes at a very interesting time. The market consensus is for a 180k print which follows a 161k gain in October. The range though between economists is anywhere from 140k to 250k. The average YTD print is 181k. As always keep an eye on the other components of the report including the unemployment rate (consensus is for no change at 4.9%) and average hourly earnings (expected to rise 0.2% mom). The report is out at 8.30am.

    This post was published at Zero Hedge on Dec 2, 2016.

  • Podcast: All Eyes On Italy

    It’s rare for the world to worry about Italy. But Sunday’s referendum has the global Establishment on the edge of its seat. The worst case scenario – from the Establishment point of view – is the vote going against the government, causing the Prime Minister to resign and be replaced by an anti-euro, anti-EU party that throws Italian banks into crisis and the European economy into chaos. Not exactly ‘la dolce vita’.

    This post was published at DollarCollapse on DECEMBER 1, 2016.

  • Spanish Government Limits Cash Withdrawals to 1,000

    The Spanish Government acted today to cap cash payments at 1,000, down from the current cap of 2,500. Anti-fraud measures enacted today include a VAT information and increased regulation of deferred payments.
    The government is working on measures against fraud, including limiting the payment in cash to 1,000 euros instead of the current 2,500. The decree is set to be approved by the Council of Ministers next Friday. The Ministry of Finance admits it could be delayed.
    The action also includes the immediate provision of VAT to take effect on January 1, 2017. The Minister of Finance and Public Service, Cristbal Montoro, advanced a few days ago that the Government would implement new measures to control the settlements of this tax.

    This post was published at GoldSilverBitcoin on DECEMBER 1, 2016.

  • “A Watershed Month” – November Sees Greatest “Asset Rotation” Since 2013

    The final November fund flow numbers are in, and as BofA’s Michael Hartnett puts it, November, it was a “watershed” month for fund flows with the largest 5-week
    bond outflows in three and a half years at $10 billion…
    … the largest 3-week precious metals outflows
    in 3.5 years…

    This post was published at Zero Hedge on Dec 2, 2016.

  • Credit cycles and gold

    The Trump shock produced some unexpected market reactions, partly explained by investors buying into a risk-on argument, equities over bonds and buying dollars by selling other currencies and gold.
    This is because President-elect Trump has stated he will implement infrastructure investment and tax-cut policies. If he pursues this plan, it will lead to larger fiscal deficits, and higher interest rates. The global aspect of the markets recalibration focuses on the strains between the dollar on one side, and the euro and the yen on the other, both still mired in negative interest rates. The capital flows obviously favour the dollar, and are putting the Eurocurrency markets under considerable strain.
    Gold has been caught in the cross-fire, being a simple way for US-based hedge funds to buy into a rising dollar by selling gold short. While this pressure may persist, particularly if the euro weakens further ahead of the Italian referendum, it is essentially a temporary market effect. This article explains why this is so by analysing the next phase of the credit cycle, and the implications for interest rates and prices, which will be fuelled by higher US fiscal deficits in addition to China’s stockpiling of raw materials. It concludes that there are factors at work which were originally identified by Gordon Pepper, who was acknowledged as having the finest analytical mind in the UK Gilt market in the 1960s and 1970s.
    Pepper observed that banks were consistently bad investors in short-maturity gilts, almost always losing money. The reason, he explained, was banks bought gilts when they were averse to lending, and sold them when they become more confident. This meant banks bought government bonds when economic confidence was at its lowest, bad debts in the private sector had risen, and interest rates had fallen to reflect the recessionary environment. These were the conditions that marked the high tide in bond prices.
    As surely as day follows night, recovery followed recession. As trading conditions improved, corporate takeovers became common as businesses repositioned themselves for better trading prospects, and a period of increasing industrial investment followed. The banks began belatedly to sell down their gilt positions to provide capital for economic expansion. By the time banks felt confident enough to lend, markets had already anticipated higher demand for credit, as well as a more inflationary outlook. Inevitably, banks ended up selling their gilts at a loss.
    Pepper had identified the mechanics behind bank credit flows between financial and non-financial sectors, an important topic broadly overlooked even today. Currently, the credit cycle has become prolonged and distorted, because most of the accumulated malinvestments that would normally be eliminated in the downturn phase of the credit cycle have been allowed to persist, thanks to the Fed’s aggressive suppression of interest rates. Consequently, bank credit was never reallocated from unproductive to more productive use, but has been added to and extended in the name of financial engineering.
    Things are about to change. President-elect Donald Trump has stated that he will expand government spending on infrastructure and at the same time cut taxes, in which case he will set in motion a new expansionary phase for the US economy, leading to an additional increase in bank credit. The immediate effect has been to drive up bond yields and increase expectations of higher dollar interest rates.

    This post was published at GoldMoney on DECEMBER 01, 2016.

  • Payrolls Rise 178K As Unemployment Rate Tumbles To 4.6% But Average Hourly Earnings Worst Since 2014

    While the headline November payrolls print came in almost on top of expectations at 178K, vs consensus of 180K there were two big surprises in today’s report, one being the unemployment rate which plunged from 4.9% to 4.6%, well below the 4.9% expected, but the biggest negative surprise was that the Average hourly earnings in November dropped by 0.1%, far below last month’s 0.4% rise, and below the 0.2% expected with the annual increase growing by a far more modest 2.5% than the 2.8% expected.
    The change in total nonfarm payroll employment for September was revised up from 191,000 to 208,000, but the change for October was revised down from 161,000 to 142,000. With these revisions, employment gains in September and October combined were 2,000 less than previously reported. Over the past 3 months, job gains have averaged 176,000 per month.
    One red flag in the report was the 4,000 drop in manufacturing workers, worse than the -3,000 expected, and following last month’s -5,000 print. Also of note, workers unable to work due to bad weather according to the BLS were 19K in Nov. The historical average for Nov. is 72k employees cannot work due to poor weather conditions. Another 113k workers who usually work full-time could only work part-time due to the weather last month.

    This post was published at Zero Hedge on Dec 2, 2016.

  • Every central bank wants a weaker US$

    Every central bank in the world, including the US Federal Reserve, now wants a weaker US$, which proves that central banks can be overwhelmed by market forces even when they are united in their goals.
    Central banks outside the US want a weaker US$ due to the long-term consequences of the actions that they themselves took many years ago to strengthen the US$. To put it another way, they now want to strengthen their own currencies against the US$ because their economies are suffering from the inevitable ill-effects of the currency-depreciation policies implemented at an earlier time. As discussed in the past, currency depreciation/devaluation is always counter-productive because it ‘engages all the hidden forces of economic law on the side of destruction, and it does so in a manner that not one man in a million will be able to diagnose.’ It is still a very popular policy, though, because at a superficial level – the level at which most economists and all central bankers operate – it seems practical.
    Unfortunately for the central banks that are now trying to prop-up their currencies relative to the US$, a central bank’s ability to weaken its currency is much greater than its ability to bring about currency strength. The reason is that weakening a currency can usually be achieved by increasing its supply, and if there is one thing that central banks are good at it’s creating money out of nothing. Actually, creating money out of nothing, and, in the process, engaging all the hidden forces of economic law on the side of destruction, is the ONLY thing they are good at.
    The problem they are now facing is that once confidence in the currency has been lost, bringing about currency strength or at least a semblance of stability will generally require either a very long period of politically-unpopular monetary prudence or a deflationary depression. There is no quick-and-easy way to obtain the desired result.

    This post was published at GoldSeek on 2 December 2016.

  • Americans Not In The Labor Force Soar To Record 95.1 Million: Jump By 446,000 In One Month

    So much for that much anticipated rebound in the participation rate.
    After it had managed to post a modest increase in the early part of the year, hitting the highest level in one year in March at 63%, the disenchantment with working has returned, and the labor force participation rate had flatlined for the next few month, ultimately dropping in November to 62.7%, just shy of its 35 year low of 62.4% hit last October. This can be seen in the surge of Americans who are no longer in the labor force, who spiked by 446,000 in November, hitting an all time high of 95.1 million.

    This post was published at Zero Hedge on Dec 2, 2016.

  • Massive 3,000-year-old Celtic gold belt found in British farmer’s field

    A huge 3,000-year-old Celtic golden belt, so large that it’s believed to have been worn by a pregnant woman or a prized animal in the course of a sacrifice, has been unearthed in a Cambridgeshire field, in Eastern England.
    According to the British Museum, the torc is one of the largest and most spectacular ever discovered in England, and it is one of thousands of archaeological finds made by members of the public last year.
    The thick twisted band, found by an anonymous treasure hunter walking with his metal detector, is made from 730 grams/1.61 lbs. of high-grade gold.
    While torcs are usually described as collars, longer ones are believed to have been worn as belts. For the Iron Age Celts, the gold torc seems to have been a key object, identifying the wearer as a person of high rank, and many of the finest works of ancient Celtic art are, in fact, torcs.

    This post was published at Mining.com

  • Gold Seen at Risk of Further Battering in 2017 as Rates to Climb

    The worst is yet to come. At least that’s the opinion of the top two gold forecasters who say bullion will suffer further losses in 2017 as interest rates climb and the dollar strengthens.
    Oversea-Chinese Banking Corp. and ABN Amro Group NV see gold sliding to $1,100 an ounce by the end of next year as the Federal Reserve tightens monetary policy, real Treasury yields increase and the U.S. currency rises. Prices were at $1,185.77 Wednesday. The banks were ranked first and second as forecasters in the third quarter, according to data compiled by Bloomberg.
    After briefly soaring to $1,337.38 as it became clear that Donald Trump was about to pull off a shock victory in the U.S. presidential election, gold slumped to a nine-month low of $1,171.18 last week on speculation that his pledges to increase spending and revitalize the economy would boost interest rates and augment the attraction of other investments such as stocks and bonds.
    ‘From an investor point of view there is little reason to hold gold,’ said Georgette Boele, a currency and commodity strategist at ABN Amro. ‘Rising inflation expectations are more than countered by the rise in U.S. Treasury yields and expectations about upcoming rate hikes by the Fed. As long as real yields rise and there are no major inflation fears, prices will go lower.’

    This post was published at bloomberg

  • The World Is Feeling the Might of China’s Commodity Traders

    The Chinese speculators shaking up global commodity markets are switched-on, flush with cash and probably not getting enough sleep.
    For the second time this year, trading has exploded on the nation’s exchanges, pushing prices of everything from zinc to coal to multi-year highs and sending authorities scrambling to deflate the bubble before it bursts. Metals brokers described panic earlier this month as the frenzy spread to markets in London and New York, prompting wild swings in prices that show no signs of abating.
    While billions of yuan have poured in from herd-like Chinese retail investors who show little regard for market fundamentals, brokers and traders say even more is coming from an expanding army of deep-pocketed hedge funds. They’re chasing better returns in commodities as stocks and real estate fade, often using algorithms and trading late into the night, when markets in London and New York are most active.
    ‘There is no doubt that the price moves and the bigger volumes worldwide are being driven by the Chinese, and by professional speculators and financial players,’ said Tiger Shi, managing partner at brokerage BANDS Financial Ltd., which counts several of those funds as clients. ‘The western hedge funds and institutional investors don’t really know what’s going on. Often they were used to trading macro factors or Fed policy, but now they find they have fewer advantages.’

    This post was published at bloomberg