Eric Sprott: “COMEX Data is Corrupted”

sprottI just think that the COMEX data is corrupted.  It’s very hard to make any sense of it all. The fact that there’s no deliveries from the dealers is incredible. You’d think there’d be some change in the inventory. I don’t care whether it’s up or down, but at least you’d think there’d be some change.”  -Eric Sprott [Read more...]

Like Dripping Silver Icicles

letter jul 27 silver candlesI don’t typically emphasize price charts in analyzing the market, however something unusual has been happening in the spot (physical) silver market.
It did not happen in the silver futures market, nor in the gold market. 

Notice the “icicles” (chartists often call them hammers or hanging men) dripping all over the place?
They occur at different times of the day, including normal market hours in New York, Europe, and Asia, and they aren’t mere artifacts of market open or close, or illiquidity. I have not noticed them with such frequency before in silver.
What are they?

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Currency Wars Intensify As Russia Buys 18.6 Tonnes Of Gold In June

Russia, Kazakhstan, Kyrgyzstan and Tajikistan Buy Gold – Bye Bye Petrodollar!
Russia continues to aggressively accumulate gold reserves.  Its gold holdings increased again in June as the crisis in the Ukraine and relations with the West deteriorated.
The Russian central bank officially increased its gold holdings by 16.8 tonnes to 1,094.8 tonnes in June, the IMF’s International Financial Statistics report showed. In ounce terms, Russia increased its gold holdings by some 500,000 ounces, to 35.197 million ounces in June from 34.656 million ounces in May.
So far in 2014, Russia has now bought substantially more than their entire annual gold production of nearly 1,500,000 ounces.
Russia was not the only central bank to diversify foreign exchange reserves, primarily held in dollars, into gold. Allies of Russia also bought gold in June. The central banks of Kazakhstan, Kyrgyzstan and Tajikistan, all Russian economic and military allies all accumulated gold in June.
Currency wars are set to intensify and the buying by the former Soviet states is another manifestation of this.

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Talk Radio’s Taboo Topics

MSMAre conservative talk radio hosts fans –  even defenders –  of  the “Politburo”-type central planning activities of The Fed?
Are they somehow not aware that  The Federal Reserve conducts trillions of dollars of business, involving countless “cronies” in America and around the world, in total secrecy?
Does this not bother them?

The Coming Silver Shortage- “All Hell Will Break Loose”

silver shortageIn this MUST WATCH video below, Crush The Street explains why a severe physical silver shortage is brewing, as the 2013 physical demand/production shortfall was an astonishing 262 million ounces
With solar panel demand estimated at 100 million ounces a year by 2015, silver recycling plunging 24%, ore grades down 95%,  and production falling off a cliff at nearly every primary silver producer in 2013, the stage is set for a dramatic and brutal physical shortage of silver. 
When the coming silver shortage finally arrives, the shorts will be squeezed so severely that all hell will break loose in both the paper and the physical markets. 

[Read more...]

Taper On! Fed Tapers Another $10 Billion!

Janet Yellen begins her first FOMC Press Conference as Fed Chairwoman

Janet Yellen begins her first FOMC Press Conference as Fed Chairwoman

  • Fed tapers another $10 billion/month beginning in August
  • Admitted QE down to $30 billion/month
  • We await the inevitable gold & silver futures smash…

Full FOMC statement is below:  [Read more...]

ObamaFraud: GAO Study Finds Almost All Fake Applicants are Approved for Subsidized ObamaCare

Well the hits just keep on coming.
The U.S. Government Accountability Office (GAO), recently conducted a study in which investigators attempted to use fake identities to sign up for subsidized healthcare under ObamaCare. The results are frightening.
All but one phony applicant was successful.   Moreover, the GAO more broadly notes that about 2.6 million ‘inconsistencies’ existed among applicants who had chosen a health plan.” [Read more...]

Silver Before it’s Too Late

The EndThe ongoing plight of the long term value investor continues – seemingly without end.
However, decades of exuberance and greed have colluded.  The financial establishment has created an accident waiting to happen. The mainstream has not “priced in” risk, which makes it even harder to travel the road less traveled.

And once the accident happens, it may be too late.
If silver prices were to suddenly move back toward natural price equilibrium, there would naturally (not always the best thing) be a rush to get on board. [Read more...]

An In-Depth look at a Major Cycle in Spot Silver

silver crashThe Rhythm & Price Video Update below takes an in-depth look at a major cycle in spot silver, which projects silver coasting down to a coming low in October after a short term double top: [Read more...]

How the Gold/Silver Ratio Can Greatly Increase Your Physical Holdings

Gold Silver Ration Jul 14The magic of compound interest is well known.   What is lesser known is the magic of the gold/silver ratio, not as a measure as it is mostly viewed, but as an application for increasing one’s holdings substantially, over time. 
What is so great here is that no magic is involved, rather simply utilizing the market to more than double your holdings.
So-called “Gold Bugs” are considered ardent supporters of the PM [Precious Metal]. 
Silver stackers are just as avid.   Then there are those willing to buy either or both.
The chart below is the gold/silver ratio going back 15 years, and this is a hindsight analysis brought forth to the present tense for future consideration that can greatly increase net holdings at almost no cost, those being transaction costs from a dealer.

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Three Signals For A Huge Silver Spike In 2014 (Has JPM Gone Massively Long Silver?)

While the average price of silver remains at a multi-year low, there are several indicators pointing toward a much higher price by the end of the year.
If we look at all three INDICATORS-SIGNALS together, we can see SOMETHING BIG is getting ready to occur in the precious metals market.

The first involves what appears to be evidence that JPMorgan has gone MASSIVELY LONG silver:

 

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Gold: Let The Good Times Roll? – Stewart Thomson

summerLet the Good Times Roll!
During the first six months of 2014, there have been quite a number of events that are positive for the gold market, and there was a big one yesterday.
Gold staged a nice breakout from a small bullish wedge pattern last night, and the entire chart has a very bullish look.

Why is that?   Well, the month of August can see Indian citizens buy enormous amounts of gold, as they begin preparations for the wedding season and Diwali.   Expectations of those liquidity flows into gold are likely why the gold chart looks so bullish now. [Read more...]

It looks like Hong Kong may soon end its link with the US dollar. It’s about time.

It was a different world in 1983.
Michael Jackson invented the Moonwalk. Return of the Jedi opened in theaters across the world. IBM released its most advanced personal computer yet– the XT, with a standard 10 megabyte hard drive.
And after nearly a decade of eratic swings and collapses, the Hong Kong government pegged its currency (the Hong Kong dollar) to the US dollar at a rate of 7.80 HKD per USD.
This was a big move for Hong Kong. The Hong Kong dollar had originally been backed by silver until 1935 when, facing a shortage of precious metals, they pegged it to the British pound.
This made sense in 1935 as the British pound sterling was still (barely) the world’s top reserve currency.
But things changed.

[Read more...]

Do Central Banks Really Hate Gold?

Bernanke-Dimon-Fed-TunnelOne of the keys we watch here along with the US dollar is the price and movement of gold.
If you do any research on gold at all, you will quickly discover that there is a commonly held view that Central Banks hate gold and think of it as a useless asset that does not earn interest.
As usual, if you dig a little deeper and do more research you discover a different story.  [Read more...]

How the NSA is Actively Helping Saudi Arabia to Crackdown on Dissent

It is not an exaggeration to say Saudi Arabia is one of the most oppressive, authoritarian regimes on the planet.   Despite having been the main foreign instigator pushing for conflict in Syria, as well as its increasingly disturbing ties to the attacks on 9/11, it remains one of the U.S. government’s closest allies.
I’ve covered some of the human rights abuses of the Saudi regime on several occasions due to the fact that it so clearly exposes the total hypocrisy of U.S. foreign policy.  The most recent example was the recent sentencing of human rights lawyer and activist Waleed Abu Alkhair to 15 years in prison for “inciting public opinion,” i.e., effectively utilizing free speech.  I covered this in detail in the post: Saudi Human Rights Lawyer and Activist Jailed for 15 Years for Free Speech Under New “Anti-Terror” Law.
Thanks to revelations from Edward Snowden, we now know that our taxpayer money is directly funding the ability of this autocratic regime to brutalize its citizenry.

[Read more...]