Gold Daily and Silver Weekly Charts – He Dwelleth In This Land

Gold and Silver had a nice rally today, with gold stopping around the 1190 area and silver making it to the 16 handle midpoint.
Look at the gold chart and you will see the only thing that really counts. Gold must break the downtrend, and take out the potential bear flag. Silver will follow, or it could possibly take the lead, but it cannot do well without gold one way or the other.
The G20 is this weekend. Let’s see if they announce anything.
I have included the economic calendar for next week.

This post was published at Jesses Crossroads Cafe on 14 NOVEMBER 2014.

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 1% and 3% on the Week

The Metals:
Gold dropped $13.52 to $1148.28 by a little after 8:30AM EST, but it then jumped to as high as $1193.50 by early afternoon in New York and ended with a gain of 2.49%. Silver surged to as high as $16.384 and ended with a gain of 4.42%.
Euro gold climbed back over 950, platinum gained $18 to $1211, and copper climbed 6 cents to about $3.05.
Gold and silver equities fell over 2% at the open, but they then rallied back higher for most of the rest of trade and ended with about 6% gains.

This post was published at GoldSeek on 14 November 2014.

Perhaps The BIS Can Share Its Next “Debt Trap” Warnings With Its Own Board Of Directors First

Lately, not a month passes without the IMF, or the G-20, or the BIS or the Fed itself issuing some warning about asset bubbles, systemic bank-runs, excessive risk taking, “levitating markets”, and yet the second the market almost enters correction territory, some Fed official, such as James Bullard for example. will “utter” a flashing red headline reminding the “market” it doesn’t actually exist and is merely a centrally-planned policy vehicle designed to stimulate the wealth effect: drop more and we unleash QEX 1. End result: one after another 10% surge such as that in the past month, which prevents even the chance at true price discovery ex-central bankers.
Yet, to keep the farce going, once the “market” hits its the upper bound of its trading corridor, the theater restarts as the same people who a few days ago said more easing is imminent, now demand a halt to that easing! Much to the amazement of anyone with a frontal lobe, and what should be his humiliation, James Bullard did just that earlier today.
And in case that was not enough, here is the BIS once again with its noble – and now thoroughly ‘Austrian’- public service announcement, this time warning about the implications of a global “debt trap” and how everything will end in tears (stop us when this becomes familiar).

This post was published at Zero Hedge on 11/14/2014.

Russia And Egypt Are Proposing Peace In Syria, Central Bankers Want War – Episode 518

The following video was published by X22Report on Nov 14, 2014
Greece now has the fastest growing economy, or is it manipulated to look that way. UK is in a middle of a housing crisis. Retail sales plummet once again, even with gas prices falling. Russia prepares for economic war by purchasing 55 tonnes of gold. Sweden confirms sub in its water but does not know the nationality of the sub. Russia release HD satellite imagery of MH 17 being shot down. See satellite image. Ukraine ready for war if Minsk deal goes south. Russia and Egypt prepare a peace deal in Syria. DHS warns the Islamic State might have the ability to cyber attack the US.

Dear Portugal, Meet Your New Landlord – China

With Wall Street having bid real estate prices to the moon in the US (and become Spain’s biggest slumlord), and handed them happily over to willing Chinese ‘get-my-money-out-of-China’ buyer greater-fools, it would appear the Chinese (having colonized America) have found a new more attractive place to park their excess liquidity. As Bloomberg reports, at a property auction in Lisbon, Portugal last month, about 90% of the bidders for the government-owned apartments and stores on offer were Chinese. They ended up acquiring more than two-thirds of the 45 properties, with one money-laundererinvestor noting “Lisbon is cheap if you compare it with other cities.”
1-in-4 homes bought by foreigners in America in 2014 were by Chinese.. and Portugal is already at 1-in-5…

This post was published at Zero Hedge on 11/14/2014.

Ted Butler Quote of the Day 11-12-14

There is a reason why the regulators seem to be finding that the big banks have manipulated every market except silver (and gold). In all the new findings and admissions of wrongdoing by the banks, there was no prior strong record of allegations that the banks were up to no good. Because of this, the regulators haven’t been accused of overlooking and missing crimes that they should have caught long ago, even though the crimes couldn’t have just started recently.

Another key difference to why the regulatory charges of manipulation in Libor and foreign exchange can’t be made in COMEX silver and gold is that damage to outsiders is too easy to prove in the case of the precious metals. This means the flood of private lawsuits that would emerge should the CFTC find what most everyone knows already (that silver and gold are manipulated) would swamp the banks and the CME. Can’t have that.

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

COT Gold, Silver and US Dollar Index Report – November 14, 2014

Gold COT Report – Futures Large Speculators Commercial Total Long Short Spreading Long Short Long Short 177,268 121,225 46,591 184,326 234,350 408,185 402,166 Change from Prior Reporting Period 369 7,551 1,996 22,659 17,376 25,024 26,923 Traders 120 116 92 50 59 215 237 Small Speculators Long Short Open Interest 35,237 41,256 443,422 1,021 -878 26,045 non reportable positions Change from the previous reporting period COT Gold Report – Positions as of Tuesday, November 11, 2014
The COT reports which we look at each week provide a breakdown of each Tuesday’s open interest for markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. The weekly reports for Futures-and-Options-Combined Commitments of Traders are released every Friday at 3:30 p.m. Eastern time. The short report shows open interest separately by reportable and Non-reportable positions. For reportable positions, additional data is provided for commercial and non-commercial holdings, spreading, changes from the previous report.
Futures and Options Combined
What does this title mean? A future is a standardized contract traded through regulated exchanges where an investor buys or sells a contract at a specified price for a specific date in the future. The price includes the interest charge due to the seller by the buyer from the date of the contract to the due date. An option is the ‘right to buy or sell’ a contract at a fixed date in the future at a specific [strike] price. The difference is that a futures contract is an agreement to buy or sell, whereas an option gives the holder the right to buy or sell. An option holder can decide not to take up that right and will only lose the cost of buying the option. His loss is therefore definable at the start of his investment, while the potential profit has not limit to it. A futures contract is usually leveraged [a loan provided] up to 90% of the contract. However, with the owner liable to top up his ‘margin’ to maintain this 10% his potential losses can rise far higher than his investment. A ‘long’ [buying] contract limits its loss to the full price of the item, whereas the ‘short’ [selling] contract has no limit except the height that the price of the item can rise to.
The Commitment of Traders report [COT] is therefore a report on the overall position of the Commodity Exchange [COMEX or NYMEX].

This post was published at GoldSeek on 14 November 2014.

Manipulation Of CPI Saved The Federal Government Over $150 Billion From 1998-2012

Cost-of-living adjustments increase entitlement spending automatically every year. Most COLA’s use all or part of the CPI to calculate inflation. The US further embeds the CPI in the system by indexing a growing portion of its government debt via TIPs. Even welfare benefits like food stamps use applicable indices within the all-items CPI to calculate COLA.
In total almost $3 trillion of federal yearly liability is subject to automatic annual CPI-based increases. This calculation includes:
All yearly means-tested welfare benefits subject to a COLA (e.g. SNAP, NSLP, etc…) All yearly social security spending (e.g. SSI, OASI, DI, everything…) All outstanding TIPs balance (every year the principal of an outstanding TIP is adjusted up/down by the inflation rate)

This post was published at Zero Hedge on 11/14/2014.

Swiss National Bank Admits Directly Buying Small-Cap Stocks

While we have noted previously that “a cluster of central banking investors has become major players on world equity markets,” and the BoJ has recently tripled its direct manipulative buying of stocks (after buying a record amount in August)… the conspiracy-theorist-dismissers will have to close their eyes and ears as the Swiss National Bank admits in its 2013 annual report that it greatly expanded its share of foreign stocks purchased… most notably small-cap companies.

This post was published at Zero Hedge on 11/14/2014.

Deutsche Bank Says “Yes” Vote Has “Narrow But Clear Lead” In Swiss Gold Referendum As 1M GOFO Hits Most Negative Since 2001

As we explained over the weekend, should the Swiss gold referendum pass successfully, the price of gold will surge. It was none other than JPM who warned that the “markets under appreciate this event”, explaing that “If the referendum is passed, the Swiss National Bank (SNB) will be forced to increase reserves by around 1,500 tonnes over five years, i.e. 300 tonnes per year. This 300 tonnes per year accounts for 7.5% of annual gold demand of 4,000 tonnes per year.”
Well, even as the SNB has been scrambling to make the referendum seem like a non-event, with very little chance of passing, moments ago Deutsche Bank released a piece that roundly refuted everything the Swiss Central Bank has been peddling. To wit, here is a note just out from DB’s Robin Winkler:
On 30 November, the Swiss will vote in a referendum to decide whether the SNB’s constitutional mandate should be changed to require the central bank to 1) never sell any gold reserves once acquired, 2) store all its gold on Swiss territory, 3) hold at least 20% of its official reserve assets in gold.

This post was published at Zero Hedge on 11/14/2014.

Stephen Roach Warns The Fed’s Fixation With Markets Is “A Potentially Deadly Trap”

As the US Federal Reserve attempts to exit from its unconventional monetary policy, it is grappling with the disparity between the policy’s success in preventing economic disaster and its failure to foster a robust recovery. To the extent that this disconnect has led to mounting financial-market excesses, the exit will be all the more problematic for markets – and for America’s market-fixated monetary authority.
The Fed’s current quandary is rooted in a radical change in the art and practice of central banking. Conventional monetary policies, designed to fulfill the Fed’s dual mandate of price stability and full employment, are ill-equipped to cope with the systemic risks of asset and credit bubbles, to say nothing of the balance-sheet recessions that ensue after such bubbles burst. This became painfully apparent in recent years, as central banks, confronted by the global financial crisis of 2008-2009, turned to unconventional policies – in particular, massive liquidity injections through quantitative easing (QE).
The theory behind this move – as espoused by Ben Bernanke, first as an academic, then as a Fed governor, and eventually as Fed Chairman – is that operating on the quantity dimension of the credit cycle is the functional equivalent of acting on the price side of the equation. That supposition liberated the Fed from fear of the dreaded ‘zero bound’ that it was approaching in 2003-2004, when, in response to the collapse of the equity bubble, it lowered its benchmark policy rate to 1%. If the Fed ran out of basis points, the argument went, it would still have plenty of tools at its disposal for supporting and guiding the real economy.
But this argument’s intellectual foundations – first laid out in a 2002 paper by 13 members of the Fed’s Washington, DC, research staff – are shaky, at best.

This post was published at Zero Hedge on on 11/14/2014.

Gold’s Support at $1000/oz.

Gold and gold miners have rebounded but remain in a technically weak position. Both markets have failed to move beyond the highs made last Friday. The same happened to the gold stocks in early October. They exploded higher one day but failed to muster anything after that. At that time Gold continued its rally for a few weeks. This time Gold has struggled to sustain Friday’s gains. While we are coming to the end of the bear market and one should not be too bearish, the downside target of $1000/oz Gold remains well in play.
The chart below shows the weekly Gold close since 1980 and the net non-commercial (speculative) position as a percentage of open interest. From this chart we can deduce the two most important levels: $720/oz and $1000/oz. Give or take $5/oz, $720/oz was the secondary peak in 1980, the peak in 2006, small resistance in 2007 and major support in 2008. Gold’s bottom in 2008 wasn’t random. It bottomed at an important pivot point around $700/oz. Today, Gold is in a downtrend without any major support until the $1000/oz level. That level marked important support and resistance from 2008 to 2010 and is the next major support.

This post was published at GoldSeek on 14 November 2014.

Dollar Dump Sparks Safety Scramble For Bonds & Bullion

Stocks were somewhat of a sideshow to the moves in Bonds, commodities, and FX today. Trannies (Airlines) and Nasdaq (AAPL) led on the week with Small Caps the laggard and Dow/S&P not much better. A 6-7bps plunge in yields from around 10am ET today left Treasury yields only 0-2bps higher on the week. The USD dumped at around the same time, cracking back to unchanged on the week as USDJPY failed at 117. While oil prices lifted modestly today, WTI Crude fell 3.2% this week – 7th week in a row – longest losing streak since 1986 (the last time US oil production was above 9 mm bbl/d). Silver screamed over 7% off its intraday lows today ( 4.1% on the day – the best day in 5 months) and gold surged 2.4% on the day (4.1% off the lows) for its 2nd best day in 5 months. VIX (higher on the week), HY credit, and TSYs all diverged notably on the week from equity ‘strength’ but today’s moves were seemingly driven by Swiss Gold Initiative rumors. It’s a Friday so 330ET saw the standard ramp to grab the S&P green and record close ( 0.02%)
The S&P 500 closed the day green… so get out there and spend all that extra cash you have from lower gas prices…

This post was published at Zero Hedge on 11/14/2014.

Beppe Grillo Wants Italy to “Abandon the Euro as Soon as Possible”, Seeks Referendum

Beppe Grillo, leader on M5S (Five Star Movement) and Italy’s second largest political party seeks a referendum for Italy to leave the Euro. One might think this would be news, but a search shows that only RT, the BBC, ZeroHedge (where I found the story), and Prison Planet picked up the story. RT had the story first, way back on October 12, so let’s start there. Please consider ‘Ditch euro, defend Italy’s sovereignty!’ Eurosceptic leader calls for referendum. The leader of an influential Italian Eurosceptic political party, the Five Star Movement (M5S), says he will collect one million signatures required to petition the Parliament to conduct a referendum on Italy leaving the Eurozone as soon as possible. The Italian government is not effective in restoring jobs and helping people, said Beppe Grillo, the leader of Italy’s anti-establishment M5S, which burst onto the political scene last year winning 25 percent of the vote in its first parliamentary election in 2013. ‘Leave the euro and defend the sovereignty of the Italian people from the European Central Bank,’ Grillo told his supporters at a M5S event in Rome. ‘We have to leave the euro as soon as possible,’ he said.

This post was published at Global Economic Analysis on November 14, 2014.

Nine of the biggest myths that people believe about the system

Years ago, an elderly, frail Japanese martial arts master once boasted a 200-0 record against his opponents.
He claimed to have a unique power that allowed him to inflict serious injury on people without actually laying a finger on them.
Was it Chi? Magic? None of the above. It was a total scam. But that didn’t matter.
You see, the legend of the master’s powers turned out to be far more powerful than reality.
His core following of students believed in the master so much that they would fling themselves across the dojo whenever he raised his pinky finger.
And anyone who saw the display would become transfixed by the perception of the mater’s extraordinary abilities. It was an incredible case of mass delusion.
Everyone believed it, including the master himself. He was so confident in his skills that he put up a $5,000 challenge that he could beat any fighter in the world.
A mixed martial arts champion accepted the wager, and the result wasn’t pretty.
As you can see in the video, the master is quickly knocked to the ground with a broken nose and a pool of blood. Observers scramble to find a doctor to come to his aid.
You can almost hear the sound of reality quickly taking hold from the gasps of his students. No one could bring themselves to believe that the master had been so quickly beaten.
To an outsider, it seems so obvious that this guy is a phony (just watch the video). But mass delusion is an incredibly powerful force.
We see the same effects in the West today – mass delusions everywhere.
People seem to believe their governments are almighty beings capable of performing magic – water into wine, debt into wealth.
Here are some of the biggest myths we see in the system today:
1. The dollar will continue to be the dominant currency.
This is a total farce. Grumblings grow louder around the world to establish a new non-dollar financial system, and China has taken the lead to make this a reality.

This post was published at Sovereign Man on November 14, 2014.