Gold Seeker Closing Report: Gold and Silver Fall Over 2% and 4%

The Metals:
Gold dropped almost $30 to $1137.79 just before 7AM EST before it bounced back higher in morning New York trade, but it still ended with a loss of 2.17%. Silver slipped to as low as $15.172 and ended with a loss of 4.68%.
Euro gold fell to about 915, platinum lost $18 to $1200, and copper fell a couple of cents to about $3.00.
Gold and silver equities fell about 3% at the open before they rallied back to about unchanged by late morning, but they then fell back off again into the close and ended with about 4% losses.

This post was published at GoldSeek on 5 November 2014.

USDJPY Breaks 115 ( 7 Handles In 7 Days), Decouples From Less Exuberant Stock Market

Japanese bond yields have crept slowly higher since the big flush on Monday and Nikkei 225 is 2.6% below its highs on Monday seemingly pinned at 17,000. We note this as Abe & Kuroda’s currency collapses yet another big figure to 115.00 (up 7 handles in 7 days from pre-FOMC) – the highest in over 7 years. The crucial 120 line in the sand should be crossed early next week at this rate… What was the trigger for tonight’s exuberance, we hear you ask, why the Japanese market opening – which sent USDJPY instantly up 40 pips.

This post was published at Zero Hedge on 11/05/2014.

Gold Daily and Silver Weekly Chart – Send In the Clowns

Gold and silver were hit again rather hard last night, with a large number of contracts dumped at market during quiet periods. This is a deliberate series of actions that are part control fraud, and part currency war.
It is as much the predations of private money as it is government meddling. Big money and government are in a corrupt partnership. Those who have simplified their world views with slogans about getting rid of government do not get this. But they will get it, and it will hurt.
This is not a problem for the Comex, which is essentially just a game.
This is going to be a huge problem for the miners, and those countries and people who depend on them. It is a problem down the road for those whose bullion has been leased out and sold by the banks into the metals markets.
For some miners, allied as they are with bullion banks in forward sales and hedges, it will be an opportunity to obtain more reserves and assets on the cheap from acquisitions and line their pockets, their shareholders be damned with the writedowns that follow.
For some analysts and industry organizations, it is a great opportunity to go along to get along, and get paid.
For some on Wall Street, this is just another brick in the wall of their historic transfer of wealth through control frauds. They are growing fat, picking the bones of the lower and middle classes.
For some well intentioned but incredibly nave people who have been swept up in the political slogans of demagogues, it will be a great time to feel good, to believe that they at last are finally members of The Club, one of the In-Crowd, to feel that they are winning

This post was published at Jesses Crossroads Cafe on 05 November 2014.

U.S. MINT SILVER EAGLES SOLD OUT: Reported 2 Million Sold In 2 Hours

The U. S. Mint announced to its Authorized Dealers that its was sold out of its Silver Eagle inventories after the price of silver fell to $15 today. According to the Breaking News Update at SilverDoctors website, over 2 million Silver Eagles were sold in less than two hours. Which means the U. S Mint will have to limit sales to their Authorized Dealers when supplies are available.
Two million Silver Eagles is a great deal of silver to be sold in one day (actually in less than two hours as reported by SilverDoctors). Total global silver mine supply was 820 million ounces in 2013. This amounts to roughly 2.2 million oz per day of global mine supply.
Thus, investors bought 90% of the daily global mine supply in Silver Eagles today. And, this doesn’t even include all the other Official Coins such as Silver Maples, Philharmonics, Pandas and etc. I would imagine at least 2.5 million oz of Official Silver Coins were sold just today… and that could be conservative.
You know this is big news when the MSM- Main Stream Media actually cover it:
Reuters: U. S. Mint temporarily sold out of Silver Eagles amid huge demand Nov 5 (Reuters) – The U. S. Mint said on Wednesday it has temporarily sold out of its American Eagle silver bullion coins following ‘tremendous’ demand in the past several weeks.

This post was published at SRSrocco Report on November 5, 2014.

About That Year-Long “Critical” Saline Shortage

In addition to its previously discussed farcical seasonal adjustment that made a slumping unadjusted Employment index appear as if it was the highest in adjusted series history, which brought a smile to many faces, today’s Non-manufacturing PMI report had a far more curious datapoint that slipped largely under the radar: the ISM’s disclosure of the “commodities in short supply.”
Two of these were also quite comical.
One was labor, which would be a required condition to complete the spin of surging seasonally-adjusted labor conditions, however which would promptly dissolve into a puff of propaganda upon a quick glance at the other set of data, the one showing real hourly wages, and the fact that these have declined in 6 of the past 7 months (and since the data comes from the BLS using an incorrect estimation of inflation, the real wage situation is far more dire). So sadly, judging by the lack of rising wages, a labor shortage is the last thing the ISM’s goalseeked respondents have to worry about.

This post was published at Zero Hedge on 11/05/2014.

Why Are Countries Training Armies To Control Mass Riots? – Episode 510

The following video was published by X22Report on Nov 5, 2014
Euro zone retail sales plunge. ADP reports private employment is up but corporations are laying off people. Mortgage apps fall again. US mint sold out of silver eagle coins. Europe and Canada want the youth to work for free. Australia might need stimulus as the economy starts to falter. Russia introduced legislation to ban the circulation of the dollar. Countries are now training armed forces to combat mass riots. War is being provoked once again in Ukraine. UK troops will be sent to Iraq for training purposes. Obama is putting together a plan to get the Islamic State. Be prepared for an event.

Ritual Incantation – – The Economic Gibberish Of The Keynesian Apparatchiks

If you want an illustration of the utter intellectual bankruptcy of our Keynesian policy overlords just review the attached Wall Street Journal piece on yet another downgrade by the EC of its official economic growth forecast. What’s illuminating is not that the savants of Brussels were wrong by a country-mile yet again, but that they persist in a mechanistic numbers game that resembles nothing so much as ritual incantation.
Yep, the Keynesian priesthood is operating from sacred texts and magic numbers. One of these revelations says that 2% inflation was decreed by the great god of GDP and that any shortfall will precipitate his wrathful extractions from growth and jobs. But there is not a shed of empirical evidence for 2% versus 1% or 3% annual change in consumer inflation – – even if it were honestly measured. Its just revealed word as transmitted by the Keynesian priesthood.
Another sacred tenent avers that in handing down the laws of proper economic life, the Keynesian creator ordained that governments everywhere and always must strive to bring GDP growth to its full employment ‘potential’ rate. No exceptions. World without end.
While the texts are not clear on the precise numeric value of this divinely ordained rate of potential GDP growth, today’s congregants claim that it’s about 3%, reflecting the historic trend growth of the labor supply plus productivity gains. In fact, however, we have achieved only about half of that – about 1.8% per annum – -in the US during the last 14 years, and even a lesser fraction in Europe.
Accordingly, this imaginary trend line of ‘potential GDP’ is now far above actual output levels. This yawning gap between the real economy and its revealed potential, in turn, enables the Keynesian priesthood to demand an endless crusade by the fiscal and central banking agencies of the state to close it.
This essentially means that the state’s economic apparatus is now all about stimulus, all of the time. In fact, the state’s central banking branch has gotten so deep into ritualized Keynesian governance that it’s essentially attempting to micro-manage vast accumulations of GDP – -about $17 trillion each in the US and Europe – -on a monthly basis. That’s entirely what the meeting statements and post-meeting press conferences are all about.
Yet this is absurd. The information flow in a $17 trillion economy is far too vast to be digested and assessed by the 12 mortal members of the FOMC, and their policy control instrument – -the bludgeon of interest rate manipulations – – could not possibly shape its short-run course in any event. That’s especially true since the macro-economy is not a closed system, but one open to every manner of complicating and countervailing influence from trade, capital flows and financial impulses in a $80 trillion global economy.

This post was published at David Stockmans Contra Corner on November 5, 2014.

Gold, Bonds, & “Maybe History Has Stopped”

THE TREND IS YOUR FRIEND… MAYBE
When markets are trending, they can appear unstoppable. Every sale in a rising market feels like a bad one, and every purchase in a rapidly falling market is punished by losses within minutes or hours. It is so much less painful to go along with the trend than to buck the trend – at least in the short or possibly medium term. Furthermore, in the modern world of super-leverage and group-think, valuations can go far beyond the estimates of every expert and practitioner. That is, of course, until they stop.
One of the main challenges of a long career in money management is that the distance (in terms of time and cost) between an intelligent conclusion that prices are massively wrong in either direction, and the actual reversal of valuations toward the range of ‘reasonableness,’ can sometimes be too long to bear. One could have easily become stridently bearish on stocks in 1995 (as we did), when in America equity prices passed all-time highs by nearly every measure, selling at 22 times earnings, a level that was previously reached in only September 1929 and March 1972 (both serious peaks). But they did not top out until early 2000 at 40 times earnings. And, in October 2008, those who thought that markets had fallen as far as they possibly could, and backed that belief with massive buying, found themselves weeks or months away from what was an extraordinarily painful and confusing bottom, with horrifying losses mounting by the day.

This post was published at Zero Hedge on 11/05/2014.

Ruble Slide Continues; Russia Forced to Abandon Currency Intervention as Reserves Dwindle

In the wake of falling oil prices, tensions in Ukraine, and sanction madness that hurts both Russia and the Eurozone, the ruble has been on a huge slide.
Ruble Daily Chart

Since June the Ruble has slid from about 34 to the US dollar to 44.9 to the US dollar. That is a decline of 24 percent. A long-term chart shows an even bigger decline.
Ruble Weekly Chart…

This post was published at Global Economic Analysis on November 05, 2014.

Bernanke Warns It Will Be “Very Difficult” For The ECB To Do QE

Speaking at Schwab’s IMPACT conference in Denver this evening, Ben Bernanke may not have earned his $250,000 but did unleash some uncomfortable truthiness – not unlike his predecessor’s comments last week. As CNBC reports, the ex-central bank chief warned all those front-runners out there – just as we have explained numerous times – The ECB faces significant political barriers to enacting a sovereign bond purchasing program (let alone a corporate bond buying binge).

This post was published at Zero Hedge on 11/05/2014.

Demand For Coins And Bars Exploding While Gold And Silver Prices Pushed Down

While the price of silver and gold have been breaking down, the demand for coins and bars is exploding, as evidenced by the following facts:
Bloomberg reports on October 31st ‘U. S. Mint Silver-Coin Sales Jump to 21-Month High’:
Sales of American Eagle silver coins by the U. S. Mint jumped 40 percent in October to the highest in 21 months, defying a slump in New York futures to the lowest in more than four years. Sales surged to 5.79 million ounces, the most since January 2013, the month that set an all-time high at 7.5 million. Today, sales jumped 33 percent in one of the busiest times this year, Tom Jurkowsky, a spokesman at the Washington-based mint, said in an interview. Last month’s total was 4.14 million.
Reuters reports today, November 5th ‘Silver lining in precious metals’ rout catches out coin mints’:
The U. S. Mint sold 1.4 million ounces of silver American Eagle coins on Friday alone, the highest daily sales since Jan. 13 when the new 2014-dated coins first became available. The Perth Mint, which runs the only gold refinery in No. 2 gold producer Australia, said it was not facing any supply issues as it usually launches a new line of products from September, unlike the other mints.
Reuters reports today, November 5th ‘U. S. Mint temporarily sold out of Silver Eagles amid huge demand’:

This post was published at GoldSilverWorlds on November 5, 2014.

“If The Fed Was Truly Data-Dependent, They Would Have Tightened Already”

Moving the Goal Posts
If the Fed were truly ‘data dependent’ they would have tightened already. Yet, it has been difficult to react to this fact, because of the FOMC’s recent history of fluctuating policy objectives and shifting interpretations as to how best to achieve its dual mandate. Simply stated, the goal posts and communication around them keep moving.
In 2006, Bernanke said that ‘stable prices are a prerequisite to the achievement of the Federal Reserve’s other mandated objectives….’ In other words, achieving maximum employment and low long-term interest rates, required price stability foremost. However, in the past few years, the FOMC expressed its willingness to compromise price stability in order to gain improved employment. It seems to me that markets have been duped into believing that inflation is a proxy for growth.
The Fed even went so far as to explicitly state, ‘The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic condition may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run’. This declaration was euphoric for risk assets and music to the ears of speculators.
It further served to turbo-charge already rampant moral hazard. It now appears that any unanticipated outcome or another deviation could trigger an unwelcomed unwind of those exposures, damaging (further) the Fed’s long-run credibility.
Was the Fed forced to delicately shift focus because stable inflation was inconsistent with the aggressive scaremongering they were doing about deflationary fears? After all, the PCE deflator tracking around 1.5% (not falling) and seemed ‘close enough’ to the Fed’s 2% target. Were exaggerated fears of deflation merely a smokescreen to justify risky and politicized policies? We may never know, but it is possible that the Fed’s experimental actions might be worse than the deflation risk itself.

This post was published at Zero Hedge on 11/05/2014.

What A Difference 2 Weeks Makes

Since Jim Bullard unleashed his “we’re gonna need a bigger QE” speech as the Dow-Data-Dependent Federal Reserve saw a 1000-point drop as the trigger for moar intervention, the world has changed. In fact, the exuberance is so effusive that, according to AAII, the percentage of Bullish advisors surged by the most on record… and yet we keep being told how negative everyone is?
Peak Manic Depression?

This post was published at Zero Hedge on 11/05/2014.

US Mint Sells Out Of Silver Eagles Following “Tremendous” Demand

When it comes to buyers of physical assets as opposed to traders of paper representations of such assets, there is one key difference: the latter, more than anything, enjoy looking at “heatmaps”, chasing trends and jumping on momentum, the result being the most recent massive selloff in such “paper” representations of precious metals as the GLD and SLV ETFs, and various gold futures.
On the other hand, those who prefer to hold the metal in their hands, as well as others such as China whose ravenous apetite for gold over the past 4 years has been extensively covered here in the past, take every advantage of selloffs, and – inconceivably – demonstrate how Econ 101, namely supply and demand, really works, leading to ever greater demand the lower the price. Demand so high, in fact, that the underlying commodity that is being sold through paper conduits, sells out.
This is precisely what happened at the U. S. Mint, which just sold out of all silver American Eagle silver bullion coins, following “tremendous” demand in the past several weeks, according to Reuters reports.
This should hardly come as a surprise: over the weekend we reported that “Silver Coin Sales At US Mint Soar To Highest In Two Years.”

This post was published at Zero Hedge on 11/05/2014.

100 Young Entrepreneurs sat in a room

All 100 were asked to come up with a business plan. They were asked for all inputs on the cost side but to leave revenue projections blank initially. All the costs you would typically see in a business were included; PP&E, utilities, employees, insurance, licenses, taxes, travel etc.
At the end of the exercise all 100 were shown a chart of the $/Yen as shown below.

They were then told to show revenue projections for their product using the last twenty years of this chart. In other words, where they would be able to sell their product at any point was 100% dictated by where this currency cross would be one, day, one month, one year, five years and ten years from now.

This post was published at GoldSeek on 5 November 2014.

Dysphoric Electorate Sends Stocks To Record Highs

Well it’s the day after Midterms so stocks had to rally, right? It appears no one told Nasdaq stocks to toe-the-line. The Dow led the day (led by Visa again, 40 of 85pts); Trannies appeared to enjoy higher oil prices today and while the hunt for a catalyst remains absent, 1315ET marked a schizophrenic divergence in stock-buying exuberance that Nasdaq never recovered from. A very choppy day in stocks – macro data, Saudi headlines, McConnell and Obama. Gold (worst day in 4 months to Apr 2010) and silver (worst day in 13 months to Feb 2010) were crushed overnight (amid zero liquidity). Oil prices surged on Saudi ISIS fears (best day in 2 months) breaking above $79. Treasury yields rose modestly (but rallied into the close). The USDollar rallied in the EU session then flatlined in the US session. HY credit was not buying the equity exuberance as HGY closed red.
It is kind of ironic that the day after the country shows its distaste for the inequality inthis country (i.e. the ‘positive’ data not trickling down to the average joe) – US equities hit an all-time high and close near highs.
It appears algos were utterly confused today and stocks drifte higher on JPY and oil and nothing else.

This post was published at Zero Hedge on 11/05/2014.