Global Interest In Silver Investment Expands As South Africa Adds New Silver Krugerrand

As interest in silver investment expands throughout the world, the South African Mint will produce its first 1 oz Silver Krugerrand, to be released this November. This is quite remarkable as the South African Mint has been producing Gold Krugerrands since 1967.
Matter-a-fact, the South African Mint has produced over 50 million oz of Gold Krugerrands over the past 49 years. It is the largest Official Gold coin producer in the world. The U. S. Mint’s Gold Eagle comes in second with over 22 million oz produced since the program started in 1987.
With the 50 year anniversary of the minting of the Gold Krugerrand in 2017, the South African Government will also release a new 1 oz Platinum Krugerrand along with its new silver coin. They also plan on adding some addition sizes of the Gold Krugerrand, such as a 1/20th, 1/50th oz variants as well as a 5 oz coin.
However, the big deal for the silver investor will be the new 1 oz Silver Krugerrand:

This post was published at SRSrocco Report on October 31, 2016.

Rents Plunge in New York, San Francisco, other Cities. Concessions Pile up. New Supply Floods Market

Demand is drying up in the priciest markets.
On the surface, rents, when averaged out across the US, still rose in October, though way slower than during the landlord’s golden days, with one-bedroom median asking rent up 1.5% year-over-year and two-bedroom rent up 2.5%, according to Zumper’s Rent Report.
But beneath the surface, a sea change is underway. Zumper:
Among the top ten rental markets, we saw declines in both of the most expensive markets, San Francisco and New York, a trend that continued from last month, and half of the twenty priciest saw falling rents, including cities like San Diego, and Miami, and Honolulu. The market for two bedroom apartments seems to be slowing down even faster, as prices fell in nearly 60% of rental markets.
All heck is breaking loose in San Francisco…
But not because the economy has tanked in the most ludicrously expensive rental market in the US, which it has not. Enormous supply is flooding the market, thanks to a historic construction boom not only of apartment towers but also of condo towers, whose investor-owned units, now that selling them has become tough, are appearing on the rental market.
Nearly all of the new supply is high end, and it is pressuring the market from the top down.

This post was published at Wolf Street by Wolf Richter ‘ October 31, 2016.

Dennis Gartman: “Zero Hedge Needs To Cut Me A Break”

In an interview posted on Kitco, Dennis Gartman said gold prices are moving higher, but he is not willing to give an exact price forecast. He then explained his reasons why:
“If I put a price number on it, and I miss it by $5, I’ll look like an idiot and the guys at Zero Hedge, they’re always out to get me,” he told Kitco News on the sidelines of the New Orleans Investment Conference.


This post was published at Zero Hedge on Oct 31, 2016.

Don’t Sweat The Election. The Next Crisis Is Already Baked Into The Cake

Friday was one of those days where you walk away from the screen for a minute and come back to find a completely different market. All it took was the FBI finding a trove of new Clinton emails, thus breathing new life into the Trump campaign and throwing what was a foregone conclusion back into doubt. Stocks tanked and gold popped, illustrating Wall Street’s preference in the upcoming election.
It will be this way until the vote, especially if polls continue to tighten and the outcome remains uncertain. So there’s no point in obsessing over fundamentals for now. Nothing real will matter until we find out who gets to mess things up going forward. Sort of like the original Ghost Busters where the demon/god says ‘Choose the form of the destructor.’
In other words it’s a mess either way. Only the details of the mess are in question.
From here on out politics are only relevant at the extremes – major war, corruption scandal, martial law etc. Short of that, the fiat currency/fractional reserve banking world has such institutional momentum that it really won’t matter whether Trump is picking on bankers and building his wall or Clinton is protecting Wall Street and raising taxes. Debt will keep soaring as it has under every president since Reagan and jobs will disappear as machines replace people, thus bringing the end of the current system inexorably closer.
So it’s both dangerous to try to time this kind of uncertainty and, in the end, unnecessary. Crisis is coming and governments (whether left or right, populist or establishment) will respond as they always do, with easier money and more borrowing.
Here are three trends that matter vastly more than the name of the next US president:

This post was published at DollarCollapse on OCTOBER 31, 2016.

Three Indicators Reveal That The Economy Is About To Enter Crisis Mode – Episode 1115a

The following video was published by X22Report on Oct 31, 2016
Performance Sports Group is declaring bankruptcy. Real disposable income slides for the 2nd straight month. Chicago PMI index declines. The Dallas Fed index declines for the 22nd month in a row. The VIX is sending a warning signal and it is starting to look alot like what happened in August 2015. The are three indicators that are very similar to 2008 just before the market collapsed. Starting getting prepared we are coming into the home stretch.

NYU Prof Who Spoke Out Against “Safe Spaces” and “Trigger Warnings” Gets Pushed Out

An NYU professor who launched a twitter war against the growing trend of universities coddling students with “safe spaces” and “trigger warnings” has been pushed out of his own classroom for his “incivility.” According to a report from the New York Post, Liberal Studies professor Michael Rectenwald was forced to go on paid leave for the rest of the semester after his undercover twitter account, “Deplorable NYU Prof”, was linked back to him.

Liberal studies prof Michael Rectenwald, 57, said he was forced Wednesday to go on paid leave for the rest of the semester. ‘They are actually pushing me out the door for having a different perspective,’ the academic told The Post.
Rectenwald launched an undercover Twitter account called Deplorable NYU Prof on Sept. 12 to argue against campus trends like ‘safe spaces,’ ‘trigger warnings’ and other aspects of academia’s growing PC culture.

This post was published at Zero Hedge on Oct 31, 2016.

Saudi Finance Minister Al Assaf Fired On Royal Orders

While mostly taking place behind the scenes, it has been a rather calamitous month for developments in Saudi Arabia: one day before the record, inaugural $17.5 billion Saudi bond priced, news broke that for the first time, a member of the Saudi Royal Family, had been executed for murder in what until then had been an unprecedented fall from grace for a member of the chosen royal elite.
The very next day, as virtually everyone in the bond market knows, Saudi Arabia priced a massively oversubcribed – the first of its kind – international bond issue, taking advantage of rising oil prices on the back of Saudi jawboning about an OPEC production freeze deal which now appears unreachable (oil is down 4% as of this moment). The deal was seen by most as a major success for the Kingdom, one whose proceeds the local authorities had started to spend just as soon as the wire transfers were executed to get thousands of government staffers back to work.
So it is surprising that less than 2 weeks after this historic bond sale, moments ago we learned thatthe long-serving Saudi finance minister had been relieved of his post on Royal orders.

This post was published at Zero Hedge on Oct 31, 2016.

Gold Daily and Silver Weekly Charts – All Tricks and No Treats

I heard an interesting data point today from the public pollsters, that those who are very confident and comfortable in how things are going now are flocking to Hillary, while those who are very uncomfortable and lacking in confidence about the system as it is are flocking to Trump.
These are the two extremes. The broad middle seems to be struggling with a choice while they hold their noses, because the disapproval ratings of both candidates are historically high.
What this tends to imply is a great deal of dissatisfaction with either outcome, no matter who wins the election next week.
The dollar tried to rally today but faded into the close, along with stocks.
Gold and silver went out on their highs for the day, pushed up against near term overhead resistance.
We are now into the November delivery reporting for the Comex, which is really just the accounting for IOUs since little gold is actually delivered as can be seen from the actual warehouse report.

This post was published at Jesses Crossroads Cafe on 31 OCTOBER 2016.

Valeant Plunges On BBG Report Former CEO, CFO Are Focus Of Criminal Probe For Accounting Fraud

While details are still lacking, moments ago Valeant stock plunged on a Bloomberg report that the Ex-CEO and ex-CFO are the target of a criminal probe due to accounting fraud.
According to Bloomberg, U. S. prosecutors are focusing on Valeant Pharmaceuticals’ former CEO and CFO as they build a fraud case against the company that could yield charges within weeks, according to people familiar with the matter, Bloomberg News reports. More details:
Authorities are looking into potential accounting fraud charges related to the company’s hidden ties to Philidor Rx Services LLC, a specialty pharmacy company that Valeant secretly controlled, the people said. Federal prosecutors in Manhattan and agents at the Federal Bureau of Investigation in New York have been investigating the company for at least a year.

This post was published at Zero Hedge on Oct 31, 2016.

CNN Decries “Fake News” Websites (Then Stealth Edits Its Own Article)

There is a plague of “fake news” apparently, and CNN is here to help you ‘dear voter’ see through the deception to the Clinton-campaign-confirmed narrative you should be paying attention. While it not enough that we have pointed out CNN’s numerous questionable actions (here, here, and here), along with today’s news of Donna Brazile’s resignation, but just this weekend CNN was caught ‘stealth editing’ false claims made against Trump. Fake news indeed…
It’s time for a new rule on the web according to CNN’s Brian Stelter: Double, no, triple check before you share. Especially if it seems too good to be true.
Why? Look no further than Donald Trump’s Twitter account. Trump claimed Sunday morning that “Twitter, Google and Facebook are burying the FBI criminal investigation of Clinton.”

This post was published at Zero Hedge on Oct 31, 2016.

SP 500 and NDX Futures Daily Charts – Banks and Criminal Culture and the Intersection Thereof

Stocks were weak today despite some attempts to rally them up.
The overhang of three major central bank meetings this week and the US Non-Farms Payroll had the punters sitting on the sidelines.
OPEC failed to agree on production cuts, so the price of oil slumped a bit today as well.
Two Ex-execs of Valeant Pharmaceuticals are being probed for fraud. I believe the stock has lost something like 80 % of its value since Bill Ackman pledged his fund’s money to it.

This post was published at Jesses Crossroads Cafe on 31 OCTOBER 2016.

Trouble Ahead for USD-Denominated Sovereign Debt?

Our US bond strategists anticipate a long-run bull market in the US dollar. This will act as a major headwind for USD-denominated sovereign debt.
The recent performance of sovereign debt relative to US credit has bucked its traditional correlations with the dollar. The beta between sovereign excess returns and the dollar has moved into positive territory. Historically, the correlation does not remain at these levels for long and sovereign debt should underperform as the more typical negative correlation is re-established.

This post was published at FinancialSense on 10/31/2016.

Gold: Rate Hikes and the US Presidential Election

Background
The next ten days or so will present gold with two major events both of which could impact on gold in different ways depending on their particular outcome and they are as follows:
1. Possible interest rate hikes in the US as the FOMC meet
2. The US Presidential Election
FOMC
The long shadow of interest rate hikes in the US has haunted the precious metals sector for the last two years and is possibly the most important single threat to gold continuing its rally.
The Federal Reserve has pushed the mantra that they want to ‘normalize’ rates following a period of Quantitative Easing. In general the Fed has two objectives; firstly to ensure that unemployment falls and secondly that inflation heads north. These two requirements have largely been fulfilled so the expectation was to that the ‘normalization’ programme would be implemented with four or so rate hikes this year. The reality is that there haven’t been any rate hikes, but we have had a lot of talk suggesting that they are in the wings. The Fed speak is now falling on death ears as the Feds credibility has been severely dented. The next meeting of the FOMC will be held on the 1st and 2nd November 2016 and the market has more or less priced in that there will be no rate hike in November. However, as much as their previous guidance has been about as useful as a chocolate fireguard, this time it might be close to the mark. We expect the Fed to signal that a rate hike in December is almost certain and the markets will listen and position themselves accordingly. Personally I have my doubts that they will pull the trigger as they have shown little in the way of appetite to implement a rate hike regardless of the CPI and the monthly Jobs print.

This post was published at GoldSeek on 31 October 2016.

Sports Authority Liquidation Claims Another Supplier Casualty As Performance Sports Goes Under

Performance Sports Group (PSG), maker of Bauer ice hockey equipment and Easton baseball and softball gear, filed for bankruptcy protection earlier today in Canada and the United States. Among other things, the company cited “weakening consumer demand,”the liquidation of Sports Authority back in March 2016 as well as the subsequent bankruptcy of an “internet baseball retailer” as key drivers of their financial downturn. According to the company’s most recent annual filing, 51% of Easton sales were to “big box” retailers.
The performance of the Company’s business in fiscal 2016 and fiscal 2017 to date has been significantly impacted by adverse market and economic conditions and related customer credit issues. The baseball/softball market experienced a significant downturn in retail sales across all product categories, but particularly in the Company’s important bat category. This weakening of consumer demand, coupled with the Chapter 11 filing by one of the largest U. S. national sporting goods retailers and the bankruptcy of an internet baseball retailer, has reduced the Company’s sales with respect to baseball and softball products. The consolidation of hockey retailers in the U. S., and the bankruptcy of a key U. S. hockey customer, has reduced customer demand for products as the Company’s customers have continued to reduce their inventory levels. The Company’s results throughout fiscal 2016 and fiscal 2017 to date have also continued to be impacted negatively by foreign currency exchange rates, specifically, the depreciation of the Canadian dollar and other world currencies relative to the U. S. dollar.

This post was published at Zero Hedge on Oct 31, 2016.

OCT 31/MAJOR DEVELOPMENTS IN THE CLINTON EMAIL AND FOUNDATION SCANDAL: SCHISM BETWEEN THE DEPT OF JUSTICE AND THE FBI/FINALLY A WARRANT IS ISSUED/ /650,000 EMAILS ARE ON ABEDIN/WEINER’S COMPUTER:…

Gold $1271.50 DOWN $1.00
Silver 17.76 UP 8 cents
In the access market 5:15 pm
Gold: 1278.00
Silver: 17.92
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
The Shanghai fix is at 10:15 pm est and 2:15 am est
The fix for London is at 5:30 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.
And now the fix recordings:
Shanghai morning fix OCT 28 (10:15 pm est last night): $ 1280.84
NY ACCESS PRICE: $1277.00 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1282.09
NY ACCESS PRICE: 1277.90 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!! 4 dollars
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London Fix: OCT 31: 5:30 am est: $1274.20 (NY: same time: $1272.90: 5:30AM)
London Second fix OCT 31: 10 am est: $1272.50 (NY same time: $1274.75 , 10 AM)
Shanghai premium in silver over NY: 80 cents.
It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.
Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.

This post was published at Harvey Organ Blog on October 31, 2016.

Mark Carney Announces He Will Remain At The Bank of England Until June 2019

Seeking to end speculation about whether or not the governor of the BOE would announces an early departure this week, moments ago the BOE issued a statement from Mark Carney, in which the head of the central bank made it clear that he would extend his term until the end of June 2019, putting any speculation about his early resignation to rest.
From the Bank of England

This post was published at Zero Hedge on Oct 31, 2016.

Two percent inflation is two percent theft

With political sewage threatening to reach tsunami force, writing an article on inflation seems like posting a daydream. Yet a better understanding of money would show us how it could shield us from political as well as economic malfeasance.
When we hear inflation discussed it’s usually presented as a method of price control. It’s a lever central bank ‘policymakers” tweak to keep IT from happening, by which I mean the infamous Bernanke IT, i.e. deflation, i.e., a general fall in prices. The Fed and its cheerleaders believe a 2% CPI inflation target (more or less) is perfect for a healthy economy. But horrors – it’s been below 2%! A recent article in the Economist exhorts the Fed to get on the stick and get busying printing (‘The only thing we have to fear is fear of inflation“).
It has been reckless of the Fed to allow inflation to remain so low for so long. We should be cheering the slight, recent acceleration in prices and hoping for more.
Remember, in the world of Keynesian economics, savings are bad, capital should be free, and in the long run we’re all dead. (See Ray Kurzweil for a rebuttal of this last point. Or see Henry Hazlitt.) In the real world where some people work for a living things are a little different.
First, as its advocates are loath to acknowledge, inflation targeting assumes a currency that, through the coercive mechanism of government, has been taken out of users’s hands, placed in the custody of a banking cartel, and converted to digital fiat money for instant manipulation. We almost never read any hint that money might be otherwise than digits created by a committee of political insiders crafting ‘policy.’ We almost never read that the crafting is indistinguishable from counterfeiting. We almost never read that money developed as a means of overcoming the restrictions of direct exchange, where one commodity emerged as the most sought-after in trade, which was neither digits nor paper. We almost never hear that when paper money becomes money itself it is always a result of government imposition overriding the choice of market participants, i.e., anyone not in on the scheme.

This post was published at GoldSeek on 31 October 2016.

With Q3 Earnings Season Half Done, This Is Where We Stand

With more than half of the S&P500 reporting Q3 results so far, it appears that the earnings recession may finally be ending mostly as a result of the rise in oil prices which have pushed energy earnings higher relative to expectations on a year over year basis, and especially due to surprisingly strong results in the US banking sector.
Consensus now expects 3Q earnings growth of 1% YoY ( 4% ex-Energy), the first quarter of positive growth since 2Q15. While growth is positive and accelerating across sectors such as Financials and Tech, growth is still negative in Energy (for the eighth quarter) and Industrials (for the sixth quarter). Discretionary earnings have notably weakened, driven by Autos, where earnings are expected to decline YoY for the first time since 2009. Sales trends have improved in this sector, suggesting margin compression from cost pressure. We have been concerned about margins for labor-intensive Discretionary companies due to higher wages, and evidence of this has been building in company commentary, and would likely be further exacerbated by a Democratic administration.
Some details on Q3 season from BofA: with the conclusion of Week 3, 292 companies representing 70% of S&P 500 3Q earnings have reported. Estimates climbed across all eleven sectors last week, driving bottom-up EPS to $30.77 from $30.24. This is now more than 3% above analysts’ expectations at the start of earnings season. Earnings are tracking above analysts’ expectations for all sectors except Energy, with the biggest contributors to the beat in Banks, Capital Markets, Aerospace & Defense, Software, and Autos. Meanwhile, Oil & Gas, Metals & Mining, Media, and Industrial Conglomerates have seen the biggest downward revisions to earnings since the start of the month.

This post was published at Zero Hedge on Oct 31, 2016.

Is The VIX Curve Sending A Warning Signal?

Is the VIX Curve Too Flat?
For the last couple of weeks, VIX and VIX based ETFs and ETNs (UVXY, TVIX, VXX, XIV, etc) have only been on the fringe of radar screen. They were there, but they were only mildly interesting.
What I had noticed at the time was:
1. VIX ETPs were seeing shares outstanding increase as VIX dropped (doubling down) 2. Then last week as VIX was rising I commented on the fact that funds were not seeing large decreases in shares outstanding – a signal that the ‘hedgers’ were prepared to be resilient
3. Over the past few days I have had more and more discussions about VIX again and think the one thing worth pointing out for those who like to dismiss it as a ‘pure retail’ product is that UVXY alone has about 25% of the outstanding Nov VIX Futures contracts and almost 30% of the outstanding Dec VIX Futures contracts. That is a large percentage of any market – let alone one where the product doubles down on direction each night to maintain its leverage balance. It has a market cap of $800 million, but since that is 2x leveraged that represents $1.6 billion of VIX exposure. VXX is unleveraged and seems about 6 to 8 times as volatile as the S&P 500 in terms of realized vol. That to me, means UVXY controls roughly $10 billion of S&P 500 equivalent risk – less easy to dismiss – especially given the daily volumes, the outsized ownership of the futures and the overall complexity of the product.

This post was published at Zero Hedge on Oct 31, 2016.