Hap, I do not come to the board here often anymore, simply too much nonsense… But you are a constant provider of great material. I will also be submitting the Nature article to a chemistry teacher within a day or two. But I'm headed out west to catch the closing of Jackson Hole, WY, then Alta, UT because they've got about 500 & 350 inches of snow respectively and Vermont is winding down…
What a find! That is one amazing article. The ramifications are very powerful for the gold industry and if it works, there are a number of mining supply companies to short and new providers of this infrastructure to jump on. I do nave a background in OC but it is not sufficient to answer the question of wether this process truly works or if it is scalable…
Will check with a chemist I know as soon as he returns from a surf trip in Costa Rica…
I'll be up here off and on for the next year and am looking at property. Will keep you posted. Enjoy your adventures...
If I could answer that question, "When do you think that there will be widespread knowledge by people everywhere of what is being done to them by central banks?". I would need more information than I have access to and, the predictive algorithms of the NSA.
At present, there are no major media outlets taking the Banking Cartel on for it's criminal role in the recent housing crisis, (they have protected their corporate owners). It will take a great groundswell of interest in the matter first, then clear reporting on what the Banking Cartel did.
If the Banking Cartel is to be taken down, millions of private RICO Act suits are a perfect suits to file for the 6.5 million American families who lost their homes to the Banking Cartel.
The RICO Act can be used by individuals to sue the banks for treble damages and RICO victories penetrate the corporate protections and make the management culpable. Quite frankly, I am shocked that none of the major law firms filed class-action suits on behalf of the American people.
Perhaps the insane healthcare bill will create a groundswell of dis-satisfaction with government and awareness of the corporate (Insurance & Pharmaceutical) interests being served by the bill.
That in turn may lead to the demand for closer scrutiny of the governments collusion with corporate interests in the fleecing of the American Public.
I won't be holding my breath on any of this happening because of the general malaise of the American population. They are really quite lazy when it comes to their responsibilities as citizens to protect themselves from government activities that violate their rights under the constitution...
In general, the mining stocks performance at the end of the day predicts the next trading days price action in gold.
This has been particularly true in knowing when there would be a take down in golds price the following day. It is less reliable on up days for gold, but Monday will give you the opportunity to observe what happens...
Sentiment: Strong Buy
Is it worth the risk? After inflation and taxes your yield is a lousy 0.5%. With the FED busily destroying the buying power of the dollar I'd think twice about tying my hard earned savings up in dollar denominated Treasuries... Simply not worth the risk...
In the case of US Treasuries, you denominate your investment in a currency that is losing at least 2% of it's buying power every year. The yield is a taxable 2.9% (in reality 0.9%) and if the yield keeps rising the bond loses value. So putting long term savings in US Treasuries yields an after tax income of perhaps 0.5% for taking the substantial risk that inflation will not exceed 2% and, that interest rates will not rise.
With the FED diluting the value of the dollar by $85 billion per month, inflation is showing up in all the things we have to consume. From food to healthcare, we are seeing large price increases.
I really do not care if my smartphone, tablet or laptop are faster because I do not come close to using their capacity now...
Inflation is here and it is ugly... Treasuries are for suckers!!!
It is not just excessive, it is abusive of the shareholders! You should also consider what they deliver vs their promises and news releases. A good example is the 5,000 boe per day that was supposed to be produced and flowing through their processing facility. The truth? about 1,800. I own the stock and am very unhappy with management. As much as I'd like to see others invest here, it is simply not a good idea until management is replaced with ethical individuals... The only reason I continue to hold my shares is on the chance that they hit it big in one of their unconventional plays... GLTU
One million dollars in cash weighs 22 lbs.
One million dollars in gold weighs 42 lbs.
One million in the bank weighs nothing!
But of course the bank may not give it back, and if they don't, the SEC, FBI and Justice department will let them keep it.
Just ask the customers of MFGlobal, Refco or the citizens of Cyprus...
Then buy better miners!
Yamana Gold has all in costs pinned at less that $850/oz. Plus they pay a 2.2% dividend. Not only that, they are driving costs down by $100/oz as they complete new mines and go after higher grades of ore. Buying low is the first step to s good investment...
Owners of 50,000 shares of GLD have the right to convert those shares to physical gold and are converting now. Today, 6.32 tons of gold were taken from the London GLD vaults for delivery under this type of redemption. Over 50 tons, (4.8% of the total gold in the fund) have been redeemed and removed in the last 12 trading days (since April 23rd). That is 1.72 million ounces gone in just 12 days!
Over on the COMEX, the inventory of deliverable gold has dropped from 92 tons to 57 tons in only two months. The Chinese, Russians, Brazilians, Venezuelans and a host of other nations are converting excess dollars into gold.
The U.S. banks are holding the bag on massive short positions and customers are well aware that banks can and will confiscate customer assets. After watching MFGlobal rob it's clients blind and no-one was prosecuted it pretty much ended confidence in banking and proved that bankers are above the law. Make no mistake; Banks and brokerages can and will steal from you. They can seize your account and everything you have in it.
No-one knows how much physical gold is in the GLD fund because so much is in the form of paper contracts or swaps. One thing is for sure and that is the fact that this charade will end the day GLD has it's last physical ounce leave its vault...
After that, holders of GLD are out of luck. I
I'd rather have mining shares that throw off dividends and some physical metal than this house of cards.
Most investors in GLD are starting to realize that there is a sudden depletion of the physical gold that underlies this fund and that they should be selling the GLD fund and investing those dollars in the real thing or mining companies that offer leverage to the price of gold and are more liquid. Today for instance, over 6 tons of gold were removed from GLD and since April 23rd, over 40 tons has been removed by investors trading their shares for delivery. The trend is speeding up and who knows how much gold is really there?
JPMorgans vault is now down to a mere 137,377 oz. That is less than 2 metric tons.
The knife cuts both ways. As the supply of paper gold lowered the price for a period of many years, unwinding that supply of paper will magnify the increase in price as it is unwound. The wildcards are: How much paper gold will the Banking Cartel be willing to write? and, When does the physical supply run out triggering the rout of the paper sellers?
Sentiment: Strong Buy
London had 6.32 tons of metal removed from the GLD fund today.
China announced that it imported 223 tons of gold last month. World production outside of China and Russia is only 183 tons.
Open interest rose by 8,844 contracts so that is 884,400 oz's across the strip.
Another customer removed their gold (57,863 oz's) from JPMorgans customer account and JPMorgan now has only 137,377 ounces left in their customer account. This makes me think that JPM's customers do not want their gold confiscated or re-hypothicated by JPM. Gold owners are more than aware of what happened to gold inventory held by MFGlobal when it turned up insolvent...
Junes contracts declined by 4,963 so they are rolling out leaving 239,268 contracts or 23,926,000 ounces hanging over the COMEX's head for June delivery.
As a teaser I remind everyone that our national debt is about to hit $16,8 Trillion...
Sentiment: Strong Buy
Inventory continues to be depleted from the two western exchanges at an alarming rate:
1. The COMEX inventory dipped below 8 million ounces to 7.97 million two days ago (250 tons). Deliverable gold is a mere 1,858.000 ounces (57.16 tons), down from 92 tons just two months ago.
2. The London Bourse is reporting 3-5 tons of gold leaving its depositories per day, (yesterdays depletion was 4.51 tons).
The COMEX is expected to deliver 5.87 tons this month and June is a huge delivery month with 244,231 contracts on the board. First day/delivery notice is only three weeks away. That equates to 24,231,000 ounces or 14 times the COMEX's deliverable inventory and three times the total inventory.
The norm is that most of those contracts will be rolled into following months and, there will be physical deliveries to the COMEX in the intervening period. But if the trend of a higher percentage of contracts standing for delivery occurs, there could be a serious shortage developing at the COMEX.
I am also mindful that inventories are depleted and will have to be re-stocked after the recent buying opportunity.
The London Bourse is the settlement agent for GLD which has responsibility for delivery of GLD's contracts and I do not have the recent numbers for their physical inventory.
The next month should be more than interesting...
Sentiment: Strong Buy