• Tag Archives Precious Metals
  • Asian Metals Market Update: September-22-2017

    Once again North Korean risk is supporting gold. Today and Monday there is not much US economic data releases. One needs to look for signs of weekend profit taking in everything. Hedge funds have already taken positions for next quarter. Retail traders will take positions for the next quarter from today and till next week. I reiterate that Asian physical demand and premiums on physical will be the key to price moves. A subdued demand in Asia can result in another wave of sell off in precious metals and base metals.
    Negative sentiment on bitcoins and cryptocurrencies will also prevent gold and silver from a big crash.

    This post was published at GoldSeek on 22 September 2017.


  • Stocks and Precious Metals Charts – Ubi Sunt? Not With a Bang, But a Whimper

    ‘Love does not make you weak, because it is the source of all strength, but it makes you see the nothingness of the illusory strength on which you depended before you knew it.’
    Lon Bloy
    Stocks were a little wobbly today, although the VIX continued to be at quite low levels for this year at least.
    The economic news is mixed, as usual.
    The dollar gave a little of yesterday’s sharp rally higher back today. The rally itself was more technical than anything else, given the long decline that it has already seen. Certainly any notions of a hawkish Fed raising rates with enough fortitude to make a difference in the dollar is sheer fantasy.
    The Fed may have one more rate increase in them for this year, but they are already on thin ice given the weak recovery and lingering lack of organic growth. The reasons are so obvious one really hates to keep repeating them. The economists certainly know them, but they are reluctant to discuss the Emperor’s nakedness. Alas, they are too often a craven careerist lot as a whole. But such are the times.
    As my Greek attorney put it just today, “Hillary just wants to tweak the status quo because it works well for her and her donors Bernie wanted to change the status quo, so he was a threat to everyone but the public.”
    Indeed. The credibility trap is alive and well, and crippling the impulse and efforts to reform.
    Have a pleasant evening.

    This post was published at Jesses Crossroads Cafe on 21 SEPTEMBER 2017.


  • Why I didn’t sell Gold and Silver in 2011

    I’d like to share a personal investment tale with you, the origins of which go back a ways. I became involved in physical precious metals/futures trading in 1972 after reading Harry Browne’s book, How to Profit from the Coming Devaluation.
    Not unlike David Morgan (before we knew each other) I accumulated metal and silver futures contracts, and rode prices into the March 1980 top. I sold my futures, but held the metal until the Hunt Brothers were knocked out of the game after the CRIMEX changed the rules to contract-offset only, collapsing the silver price.
    I watched silver drop through Harry Browne’s “sell if it goes below $37.50” call to $10.80. Then, during a classic 50% retracement to $25, I asked my broker where he though silver would bottom. His answer: “$5.00.” He called it almost to the dollar, but it took a generation to get there.
    In 2000, after buying a one-ounce gold Krugerrand for my daughter’s high school graduation and watching people at her party view it with zero interest, I decided to move back into the sector, focusing on physical metals and mining company shares.
    As the new bull market was getting underway in 2001, I decided to write on a piece of paper the following sentence: “On June 22, 2011, win, lose or draw, I will exit my position in the metals and mining shares.”

    This post was published at GoldSeek on 21 September 2017.


  • Stocks and Precious Metals Charts – Not With a Bang, But a Whimper

    ‘Love does not make you weak, because it is the source of all strength, but it makes you see the nothingness of the illusory strength on which you depended before you knew it.’
    Lon Bloy
    Stocks were a little wobbly today, although the VIX continued to be at quite low levels for this year at least.
    The economic news is mixed, as usual.
    The dollar gave a little of yesterday’s sharp rally higher back today. The rally itself was more technical than anything else, given the long decline that it has already seen. Certainly any notions of a hawkish Fed raising rates with enough fortitude to make a difference in the dollar is sheer fantasy.

    This post was published at Jesses Crossroads Cafe on 21 SEPTEMBER 2017.


  • Stocks and Precious Metals Charts – FOMC Tomorrow – One Step Enough For Me

    ‘That’s just the way: a person does a low down thing, and then he don’t want to take no consequences of it. Thinks as long as he can hide it, it ain’t no disgrace.’
    Mark Twain, The Adventures of Huckleberry Finn
    “Beware the fury of a patient man.’
    John Dryden, Absalom and Achitopel
    Janet and her Merry Pranksters at the Fed will be making their latest interest rates announcement from their two day September meeting tomorrow at 2 PM.
    The SP 500 continues to dribble higher, while the tech heavy Nas 100 is now chopping sideways.
    I don’t have any short positions on at the moment. There would be an event-driven drop no doubt, although the markets managed to shake off quite a bit of ‘risky’ news at the end of last week.

    This post was published at Jesses Crossroads Cafe on 19 SEPTEMBER 2017.


  • Gold Ownership: A Golden Wave

    Several weeks ago, I surprised most investors by issuing my ‘Book Profits Now!’ call for the precious metals asset class. When I did so, head and shoulders top formations immediately formed on gold and GDX, and prices have swooned. Rumours of a sudden drop in Indian dealer demand appeared to become a concern for commercial traders on the COMEX. India’s monsoon season has turned out to be a bit of a ‘bust’, with both flooding and drought. Farmers buy gold with a portion of their crop profits. With only another week or two left in the monsoon season, crop sales may not be very good. Of further concern to me was the fact that the demand drop was occurring as gold arrived at the $1352 resistance zone. That resistance was created by Modi’s cash call-in that took place in November of 2016. The upcoming Fed meeting will probably mark the end of the decline related to those concerns, but there could be additional weakness until the next US jobs report is released. Please click here now. Double-click to enlarge. For investors, this gold chart tells the entire tactical story. The $1270 – $1260 area is the target of the H&S top pattern. Investors should use a two-pronged strategy to profit from the coming rally that should take gold back to the ‘Call-In Day’ resistance around $1352. I’ve outlined the $1315 – $1295 price area as the first key buy zone. Eager accumulators can buy right now.

    This post was published at GoldSeek on 19 September 2017.


  • Stocks and Precious Metals Charts – On the Daedalian Wings of Paper Money and Corrupted Power

    “The conventional wisdom seems to be that the problems of the euro zone are, as economist Martin Feldstein once put it, ‘the inevitable consequence of imposing a single currency on a very heterogeneous group of countries.’
    What this commentary gets wrong, however, is that single currencies are never the product of debates about optimal economic solutions. Instead, currencies like the U. S. dollar itself are the result of political battles, where motivated actors try to centralize power.
    This has most often occurred ‘through iron and blood,’ as Otto van Bismarck, the unifier of Germany put it, as a result of catastrophic wars. Smaller geographic units were brought together to build the modern nation state, with a unified fiscal system, a common national language that was often imposed by force, a unified legal system, and, a single currency. Put differently, war makes the state, and the state makes the currency….
    European leaders weren’t stupid or self indulgent when they decided to move ahead with the euro, without fiscal union or strong Europe-level democracy. They just cared more about politics and international security than economics. They wanted to build a Europe that had transcended the divisions of the Cold War, and bind together Germany, which was reunited and much more powerful, with the rest of Europe.”
    Kathleen McNamara, This is what economists don’t understand about the euro crisis – or the U. S. dollar
    “Another cause of today’s instability is that we now have a society in America, Europe and much of the world which is totally dominated by the two elements of sovereignty that are not included in the state structure: control of credit and banking, and the corporation.

    This post was published at Jesses Crossroads Cafe on 18 SEPTEMBER 2017.


  • Asian Metals Market Update: September-19-2017

    The trend after the FOMC meet tomorrow in precious metals and currency markets will be interesting. Global shift to electric cars over the coming years can put copper and nickel prices into inertia in the next few years. Some electric cars makers are considering making the car body from Aluminum to reduce car weight. Aluminum could also get a boost from electric cars. Long term fundamentals are looking extremely bullish for industrial metals. Solar power will support silver from getting a breakdown. The real competition to the traditional metals will come from Graphene. I am a big fan of Graphene. Every day I search the net for new uses of Graphene and new processes to make Graphene. I am pretty sure Graphene will soon become a part of daily lives just like copper or aluminum.

    This post was published at GoldSeek on 19 September 2017.


  • Stocks and Precious Metals Charts – Stock Options Expiration Tomorrow

    “Greater love has no man than this, that he lays down his life for his friends. You are my friends, if you do what I ask of you. No longer do I call you servants, for the servant does not understand what his master is doing. But I have called you friends… This I command you, that you love one another.
    If the world despises you, you know that it has despised Me before you. If you were of the world, the worldly would love you as one of their own. But you are not of the world, because I have chosen you out of it. And so the world does not value you.”
    John 15:13-19
    Tomorrow is a stock options expiration.

    This post was published at Jesses Crossroads Cafe on 14 SEPTEMBER 2017.


  • Former UBS Trader Arrested, Charged With Rigging Gold Prices

    Three years after we first identified the former head of UBS’s gold desk in Zurich as someone directly implicated in the rigging of precious metals prices, Bloomberg reports that Andre Flotron, a Swiss resident, was arrested while visiting the U. S., according to people familiar with the matter.
    Having been “on leave” since 2014, it appears Andre’s hope that he was gone but “keen to return in due time” are now up in smoke.
    As Bloomberg reports, Flotron was charged with conspiracy, wire fraud, commodities fraud and spoofing, according to a prepared complaint, and is the second person publicly charged in the U. S. investigation into the fixing of gold, silver, platinum and palladium prices.

    This post was published at Zero Hedge on Sep 13, 2017.


  • Precious Metals Bull Analogs Update

    We started employing analog charts during the latter stages of the seemingly forever bear market in precious metals. Comparing current to past trends by using price data is not considered technical analysis but it is extremely valuable because history tends to repeat itself. It also helps us identify extremes as well as opportunities. For example, in 2015 it was clear the epic bear market in gold stocks was due for a major reversal. Today, precious metals appear to be in the early innings of a cyclical bull market and the analogs suggest there is plenty of room to run to the upside.
    The first chart compares the current recovery in Gold to past recoveries. In recent quarters we had anticipated a similar, explosive rebound like in 2008 and 1976. However, with 18 months of evidence we can now say the current rebound most resembles the rebounds that started in 1985 and 2001. Both of those rebounds imply Gold could reach $1700/oz by Q4 of 2018. However, if Gold cannot takeout the resistance around $1375 then it could end up following the path of the 1993 rebound.

    This post was published at GoldSeek on Wednesday, 13 September 2017.


  • Precious Metals Supply and Demand

    Fundamental Developments
    There were big moves in the metals markets this week. The price of gold was up an additional $21 and that of silver $0.30.
    Will the dollar fall further?As always, we are interested in the fundamentals of supply and demand as measured by the basis. But first, here are the charts of the prices of gold and silver, and the gold-silver ratio.

    This post was published at Acting-Man on September 13, 2017.


  • Richard Sylla: Human Civilization at Momentous Turning Point With Record Debt Levels and Ultra-Low Interest Rates

    Total US debt has now exceeded $20 trillion for the first time ever. Meanwhile, interest rates (i.e. the cost of debt) in the US and around the globe reached the lowest levels in recorded history.
    Financial Sense recently spoke with Richard Sylla, professor emeritus of economics at New York University and the co-author of A History of Interest Rates, about the unique times we are living in and why, historically speaking, we may be looking at a momentous turning point in human civilization.
    History of Interest Rates
    ‘As long as you have some commerce…people are going to demand credit,’ Sylla said.
    Silver and gold have always been prized, but coin-based currency didn’t come in until the fifth or sixth century. This ushered in a new era, Sylla noted.
    This was one of the most impactful economic innovations in history, basically beginning in Asia Minor or what is today Turkey.
    This state of affairs changed over the years, but we basically had a monetary system based on precious metals until the classical gold standard in the late 19th and early 20th centuries, Sylla noted.

    This post was published at FinancialSense on 09/12/2017.


  • David Smith: Precious Metals Supply Pipeline ‘Getting Harder and Harder to Fill’

    Mike Gleason: It is my privilege now to welcome back David Smith, senior analyst at The Morgan Report and regular contributor to MoneyMetals.com. David, thanks for joining us again and how are you?
    David Smith: I’m just fine, Mike. It’s great to be back.
    Mike Gleason: Well, David, not too long ago you wrote an article for our site about how gold and silver were getting ready for an historic run you called it. So, before we start discussing some of the market action here recently, fill our listeners in on why you believe things were set up and are set up for us to see a good run in the metals here.
    David Smith: Well, we’ve had a very trying period since 2011 when a lot of people have been really worn out and torn out and left the market because the prices have declined substantially and what is really a normal reaction in a very large bull market, what we call a cyclical reaction within a secular bull market. The prices, if you look at other times in history where this has happened, the prices did not decline more than what you would expect but it’s pretty hard when you see prices drop by 40 or 50% over five years.
    Last year kind of started to turn things around and then we had a correction from that. And now we’re building this very large sideways space, which all sorts of indicators are indicating that we’re now ready to launch into the next part of the bull market, which will be as David Morgan has always taught it will be the most profitable part of the whole thing and we’re looking at probably three to five years of advancing prices and maybe more in gold and silver as this thing gets under way. So we’re building this base. It’s moved about $1,300, gold as you know last week and held there. So things are going to be going a very positive way for the bulls going forward here.
    Mike Gleason: So the metals have been showing some good signs of life here. We’ve got gold at its high for the year. Silver is still lagging a bit and hasn’t reached its high for the year yet. Now, I’m not sure if you’re thinking the same thing, but things are feeling a little bit different this time in terms of the advance that we’re seeing and the set up that you just alluded to. Do you think silver will finally start outperforming? And how much of a run do you see in silver prices in the next say six to 12 months?

    This post was published at GoldSeek on 11 September 2017.


  • Looks Like The COT Report Wins Again, As Gold And Silver Fall Sharply

    Eventually physical demand for precious metals will swamp the games being played in the paper (i.e., futures contract) markets. So every time the commitment of traders report (COT), which tracks those paper games, turns bearish while gold and silver continue to rise, the precious metals community watches hopefully for signs that fundamentals are at long last about to ignite a massive bull run.
    The past couple of months followed this script (see Lightening-Fast COT Reversal: Now Fairly Bearish For Gold And Silver) as gold and silver kept rising for a while in the face of growing resistance in the paper market.
    Here’s a more detailed explanation from Hebba Investments via Seeking Alpha:
    The latest Commitment of Traders (COT) report, showed another rise in speculative longs for the EIGHTH straight
    week. This two-month streak with the net speculative position of gold traders rising every week, has just tied the record-longest gains streak achieved – in the history of the COT report (going back to 2006) it has never risen for NINE consecutive weeks. History for COT nerds (like myself) could be made next week if gold speculators continue their torrid streak.

    This post was published at DollarCollapse on SEPTEMBER 11, 2017.


  • Market Report: Have we lift-off?

    As can be seen in our headline chart, gold and silver powered ahead further this week, and appeared to be undergoing a rerating. Gold this morning in early European trade was trading at $1354, up from $1320.80 at last Friday’s close. Gold is now up 17.5% on the year so far. Silver this morning is trading at $18.16, up from $17.73 last Friday, and is up 14% on the year. Silver still has some catching up to do, and appears cheap relative to gold.
    Continuing weakness in the dollar, notably against the euro, is being reflected in higher prices for precious metals. At the same time, commodity prices are rising, led by demand from China. China is offsetting some of the higher dollar prices for raw materials by allowing the yuan to rise against the dollar, which is up 8% this year.

    This post was published at GoldMoney on September 08, 2017.


  • THE U.S. PETRO DOLLAR BREAKDOWN CONTINUES: Big Moves In Gold & Silver Ahead

    The four-decade long monopoly of the U. S. Petro-Dollar as the world’s reserve currency is coming to an end. Unfortunately, most Americans have no clue that when the Dollar loses its reserve currency status, life will get a lot tougher living in the U. S. of A. Let’s say, Americans will finally receive ‘Precious metals religion.’
    The U. S. Dollar Index fell considerably yesterday and is now down below a key support level. In early morning trading yesterday, the U. S. Dollar Index fell to 91.46, down 73 basis points:

    This post was published at SRSrocco Report on SEPTEMBER 8, 2017.


  • Feds File Suit in One of the Largest Precious Metal Fraud Cases in History

    The US Commodity Futures Trading Commission (CFTC) has filed a civil lawsuit against California-based gold dealer Monex Deposit Co. in what officials call one of the largest precious metals fraud cases in the history of the commission.
    The CFTC alleges Monex defrauded thousands of retail customers nationwide out of hundreds of millions of dollars, while executing illegal, off-exchange, leveraged commodity transactions.

    As alleged, the Defendants defrauded thousands of retail customers – many of whom are elderly – out of hundreds of millions of dollars as part of a multi-year scheme. Fraud in our markets, like that alleged here, undermines confidence, reduces transparency, and harms competition. As this investigation shows, we’ll work tirelessly to detect and prosecute fraud of the sort that’s alleged here.’
    The allegations revolve around leveraged trading in gold, silver, platinum and palladium through the company’s ‘Atlas’ program. Leveraged trading simply means the investor borrows money in order to invest in precious metals. If the investment pans out, the metal will increase in value enough to repay the loan, cover commissions and interest, and generate a positive return.

    This post was published at Schiffgold on SEPTEMBER 7, 2017.


  • The Forking Paradise – Precious Metals Supply and Demand Report

    Forking Incentives
    A month ago, we wrote about the bitcoin fork. We described the fork:
    Picture a bank, the old-fashioned kind. Call it Acme (sorry, we watched too much Coyote and Road Runner growing up). A group of disgruntled employees leave. They take a copy of the book of accounts. They set up a new bank across the street, Wile E Bank. To win customers, they say if you had an account at Acme Bank, you now have an account at Wile, with the same balance!

    This post was published at Acting-Man on September 5, 2017.