"But when it comes to the ETF GLD, you need about $13 million worth, or 100,000 shares, if you want to redeem the shares for physical gold. We have a number of our sources who have told us directly that JP Morgan and some of the other bullion banks are in fact turning down investors with 100,000 shares who have asked to redeem those shares for physical gold.
Meaning, various entities or high net worth individuals who have presented 100,000 shares or more to JP Morgan for the purposes of redeeming those shares for physical gold have already been told, or are currently being told by the banks, ‘No, we will not act on your behalf.’
This goes right to the heart of the reason why these ETFs were set up in the first place, which is so the bullion banks could loot them when they needed the physical gold from the vault to engage in the kind of manipulative behavior that we are witnessing today.
The winners in all of this are the bullion banks themselves because they created the game. Meaning, they are the referee as well as a player in the game so they can’t lose because they fix the game. So the ordinary investor has no hope when it comes to owning an ETF such as GLD.
People also have to remember that Eric Sprott’s physical Gold and Silver Trusts have lost very little metal to redemptions. So, while GLD has lost a staggering 34% of its gold inventory because of the looting, the Sprott Gold Trust has lost a mere 1.3% of its gold.
This is why the mainstream media is the ‘Great Deceiver.’ There is no mass exodus from physical gold as the mainstream media would have investors believe. In fact, we have been and continue to see unprecedented levels of physical gold demand that we have never seen in history.
This is why I am telling you as a multi-decade veteran of these markets, as someone who worked at Goldman Sachs, and who served on the Board of Directors at Paine Webber, the gold and silver markets are entirely corrupted and there is no true price" KWN
News! Good luck with your FX trades. That type of investing is way out of my league. Instead, I'll be catching up on missed episodes of "Walking Dead". (And I'm not referring to the U.S. dollar...LOL)
"NEW YORK (Reuters) - Fitch Ratings warned on Tuesday it could cut the sovereign credit rating of the United States from AAA citing the political brinkmanship over raising the federal debt ceiling.
"Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default," the firm said in a statement.
Fitch is the only one of the three major credit rating agencies to have a negative outlook on the U.S. sovereign credit. Standard & Poor's downgraded the rating to AA-plus in August of 2011 during the last debt ceiling impasse."
Debt downgrade certainly should not hurt silver and gold!
China is our biggest creditor and now they want the entire world to dump the dollar as a "world reserve currency". They have never been this vocal before!
"Debt Ceiling: China Calls for World to Be 'De-Americanised.'
"Chinese government mouthpiece says 'Pax Americana' has failed on all fronts ... Xinhua calls for de-Americanised world. China's official news agency has called for the creation of a "de-Americanised world", saying the destinies of people should not be left in the hands of a hypocritical nation with a dysfunctional government. Heaping criticism and caustic ridicule on Washington, the Xinhua news agency called the US a civilian slayer, prisoner torturer and meddler in others' affairs, and said the 'Pax Americana' was a failure on all fronts." – International Business Tribune -
Since China has no fear of risking the value of it's holdings of treasury bills when the dollar loses value after being tossed as the "reserve currency", China's next step, if they are serious about "de-Americanizing' the world would simply be to initiate a mass liquidation of it's holdings of U.S. treasury bonds. Suddenly putting $trillion of their U.S. treasury bills up for sale would decimate our bond market as well as our dollar.
China does not have to fire a single shot to bring down the U.S. So...should we listen to them? China has the power to send silver on a rocket ride. Got silver? Got EXK???
Yellen is known to be quite dovish on "loose" monetary policy to bolster the economy. (There will be no tapering....IMO). This announcement should be bullish for PM's but who knows anymore whether anything can be bullish for PM's.
" WSJ reports that Obama is set to announce Mr., pardon Mrs Janet Yellen as Bernanke's replacement tomorrow at 3 pm at the White House. "The nomination would conclude a long and unusually public debate about Mr. Obama's choice which started last June when he said that Ben Bernanke wouldn't be staying in the post after his term ends in January. Mr. Obama gave serious consideration to his former economic adviser, Lawrence Summers, who pulled out in September after facing resistance from Democrats in the Senate."
Anyone know why EXK took the big hit today?
Typo! Fed now printing only $85 billion/month......soon to be $85 trillion/month.....LOL More importantly, why isn't China trading in their treasuries for resources and resource companies, especially silver and gold miners. After all, they yearn to be a world reserve currency and need to connect their currency to something of value....not just inflated promises of "full faith and credit", etc.
The Fed continues to print $85 trillion/month of free money, the government is shutting down, and political parties are deadlocked on elevating the debt ceiling, a U.S. default on debt is getting closer to reality than anyone would like to admit. So what does the U.S. dollar do exactly? Well, at the moment the U.S. dollar is gaining strength. Silver and gold continue to languish at prices below levels last seen when QE3 was launched (and continues to thrive). Fiat must be good to hold forever......right????
Well....at least the Dodgers beat the Braves moments ago. And I'm not even a baseball fan....anymore.
Just what will light a fire under precious metals prices? Where is that last straw.....that will break the camel's back? I dunno! Debt grows, government grows (ie, Obamacare), job market is frozen or is shrinking (going to part-time mode), and silver and gold forget their 5000 year heritage.
Yeah....nothing makes sense. China's Central Bank holds over $3 trillion in reserves but at least a third of that consists of U.S. Treasuries. So if U.S. debt is downgraded with anything resembling a "default", China's storehouse of wealth suddenly takes a downward hit. Nothing makes sense! Why hold treasuries in this environment?
U.S. dollar index popped back up above 80 on basically no news. NFP failed to publish today (as normally scheduled). I would have thought this development alone would be dollar negative. What do I know...anyhow!
Excerpt from Adam Hamilton's 321Gold article today:
"But unfortunately 2013 proved to be another extreme anomaly like 2008's stock panic. The Fed's QE3 campaign led to levitating general stock markets, resulting in a mass exodus of capital out of the flagship GLD gold ETF to chase general stocks. This resulting unprecedented GLD bullion selling pushed gold prices lower, eventually triggering a couple of ultra-rare futures forced liquidations. So gold plunged in Q2.
That was actually gold's worst quarter in something like a century, wildly unprecedented in modern times. Even though market history is crystal-clear, after extreme selloffs come extreme mean-reversion rallies, gold-stock traders freaked out. They sold and sold and sold gold stocks, forcing their prices far lower than gold warranted. You can see the huge disconnect today in this chart, the biggest of this entire secular bull by far.
Much like during 2008's stock panic, gold stocks plunged far faster than gold earlier this year. While gold dropped back to levels first seen in late 2010, call it a $1300 midpoint, the HUI plunged to levels first seen way back in late 2003! The problem is this is a massive, crazy fundamental disconnect. Back then the prevailing gold prices were only around $400 per ounce! For silver stocks, silver was only near $5.25."
EXK keeps growing production and reserves quarter after quarter but stock price is lower today than when silver was priced at $5.25/oz. Go figure!
Hey News! The U.S. dollar has dropped below the psychological 80 level and is currently at 79.89. Is there any technical significance if it remains below 80 for a couple of days?
Obviously, the pending debt ceiling and a failure of a timely resolution should generate further downward pressure on the dollar. But I think the dollar is between a rock and a very hard place. A "kick the can down the road" raising of the debt ceiling can't possibly augur well for the dollar. And a failure to raise the debt ceiling, unlike the current half hearted government shut down,.....would be catastrophic for the dollar. A failure to raise the debt ceiling, like many others predict, could be the catalyst to terminate the dollar as the world's reserve currency. I would be very surprised if Congress fails to extend the debt ceiling for at least another year, even without any "compromises".
I still maintain that PM's should rally between now and the end of the year. Time will tell.
Porter Stansberry has produced a very lengthy audio recording which dissects current events, debt levels, but most importantly, the dollar losing it's "reserve currency" status. Stansberry has excellent credentials. He makes a good case that the process of the fall of the dollar is already in progress and as a result, inflation in America is about to go ballistic. Of course he recommends "hard" asset investments, especially gold and silver. He predicts the collapse of the dollar will result in a catastrophe 10 times worse than the 2008 credit crisis. I, for one, agree with him. More importantly, Stansberry suggests the collapse could take place faster than anyone expects since most Americans, due to "normalcy" bias, believe that it can never happen....as they can't conceive of the U.S. dollar collapsing after such a long run and that "America is great".
I think Porter has nailed it. EXK investors should be just fine. There are no guarantees short term but in several weeks EXK investors should see daylight like never before.
Yes! Don't sell your shares at these bargain basement prices. This should be buying time for those who still have some "dry powder".
Yahoo Finance lectures the "99%":
"The markets are sending a loud message to Washington lawmakers to get their act together and resolve the budget crisis and move on," said Peter Cardillo, chief market economist at Rockwell Global Capital." (From article titled, "Stocks slip after US hiring report disappoints".
What the market does or does not do is economically irrelevant to the 99% of Americans who do not participate in stock markets. But will congressmen listen to the propaganda? I suspect most in private industry could care less is federal government employees have to go without "generous" paychecks for a lengthy period of time.
So what does Obama do to muster support for "his" government and the 1% (the elite wealthy)? He invites the heads of the 4 largest American banks to the White House today to consult regarding the looming deficit ceiling and the budget impasse. Do you think those bankers care about long term consequences to American taxpayers when American debts grow beyond all rational levels? They know how to play that game to their own advantage. So...are we supposed to be impressed that Obama invites the big bankers to the White House to protect their interests and the powers that are currently running this "out-of-control" government?
Apparently, EXK investors are not confident that today's price rise in silver will hold in coming days. Hopefully, this marks a bottom in EXK trading as negative sentiment seems to be running at an all time fever pitch. Volume is low as there are not many sellers. Maybe all, or most of, the weak hands have already jumped ship. Nevertheless, we'll still need more upward movement in silver prices for EXK to really regain a positive footing. Although there may no longer be a "high" correlation between PM's and the dollar, I suspect a "crashing" dollar will give plenty of impetus to higher metal prices. And the dollar got hit today!
"WASHINGTON (Reuters) - The U.S. Treasury on Tuesday started using its last tools for pushing back the date when the government will run out of legal borrowing authority, Treasury Secretary Jack Lew said.
In a letter to lawmakers, Lew said the Treasury Department was suspending some reinvestments of a government currency exchange fund and would also enter into a debt swap with the Federal Financing Bank and the Civil Service Retirement and Disability Fund.
He repeated past statements that these measures would allow it to continue below its $16.7 trillion limit for a little while longer, but that by October 17 the government will have exhausted its borrowing authority and will be left with about $30 billion in cash to pay the nation's bills.
"If we have insufficient cash on hand, it would be impossible for the United States of America to meet all its obligations," Lew said in a letter to lawmakers. "For this reason, I respectfully urge Congress to act immediately to meet its responsibility by extending the nation's borrowing authority."
After borrowing authority expires, Treasury by law would then have to rely on its remaining cash and incoming revenue to pay the country's obligations."
Not any problem that i can see!!!!!!
Did the Fed get more religion? After all, they are publishing another trillion pieces of paper announcing, "In God We Trust". That makes over 3.2 trillion announcements in the last 5 years. But I understand our president would prefer they change their announcement to, "In either God or Allah We Trust".
So many pieces of currency backed by the "full faith and credit" of a government now closing down. Do words on paper like "God, Trust, Faith, and Credit" give one the same sense of security as holding an ounce of gold or silver in your hand? Does an impending debt ceiling cause no concern whatsoever?
Today's attack on silver and gold prices still makes absolutely no sense to me. Can it really be some sort of "manipulation" of the PM "paper" or "futures" markets? Can it be main stream media efforts to trash talk the metals causing investors to abandon their PM investments. I really don't know. And I don't know how much longer the masses will be satisfied carrying fiat currencies in their wallets as "legal tender for all debts public and private". Perhaps it can go on for much longer than anyone can now imagine. I, for one, used to be convinced our currency would suffer major jolts to it's credibility by the end of this year. Now I wonder how much longer the Fed's "religion" can trump fundamentals. So I wait....still feeling relatively secure with some physical metals, EXK, and some other PM stocks....even though my wife now thinks I'm an idiot for doing so. But, can I blame her after reviewing PM price action during THE LAST 2 YEARS?
Visibly shaken but still hanging tough for now. GLTA
No, really. The U.S. government is on the eve of a government shutdown, Italy is virtually collapsing, Greece is arresting opposition party leaders and facing civil unrest.....and silver and gold are trading in the red. Not only is the entire surface of the earth today becoming a visibly riskier environment to live, as well to invest, but we have new pronouncements coming from our money printing Federal Reserve. Non-voting Fed President Kocherlakota is now clamoring for accelerated money injections, above and beyond the current $85 billion/month, in order to give our moribund economy a nice kick in the pants to get it going.
Based on history, based on sound economics, based on fiat currencies sky-rocketing above the stratosphere.....silver and gold should be enjoying a ride in the green today. What the heckfire is going on? And EXK suffers today..... It is days like this that make me hit the Jack Daniels early in the morning!
“In a meeting a couple of months ago, I happened to be in the audience with one of the Fed governors, Jeremy Stein. And at the end of his talk I said, ‘Governor Stein, can you help us understand the substantive difference, not the legal difference, but the substantive difference between the Fed’s manipulation of the federal funds rate, and the yield curve, and it’s talking up of the stock market -- the difference between that on the one hand, and LIBOR rigging in the private sector on the other?’
That was my question and I thought it was a pretty fine question....
“Governor Stein hemmed and hawed, and he said, ‘There’s no (pause), it’s not the same thing. It’s a criminal activity, these LIBOR riggers, and we are going to bring down the force of the law on their heads,’ or words to that effect.
So as corrosive as the alleged manipulation of the LIBOR rate might have been, it is nothing compared to the federal program of substituting price administration for price discovery. At the heart of the Fed’s regime is the subordination of freely discovered prices, to policy goals." (From KWN website)
My friends and family bad mouth silver and gold because they don't see anything wrong with the current system. Gold is just a lifeless, antiquated metal and there is no other stronger country in the world than the U.S.A. Interest rates won't rise and government indebtedness is not a problem.
But as hedge fund Blackstone now observes: "Blackstone: We're in an 'epic credit bubble'" (CNBC)
So who has it right? Jim Grant and Blackstone or the clueless public? Got silver????
Certainly, China plays a huge role in the direction of PM prices. But we might be surprised how the world responds to how the U.S. resolves it's debt ceiling issue....but then again, it may again be a non-event. One thing we know for sure. Our country's credit card limit will be jacked up again. That's how we operate.