Macleod’s Market Report: COMEX Silver Open Interest Close to All-Time Highs!

silver pricesIn western capital markets there is a widely-held view that a deteriorating economic outlook will provoke a run from commodities into cash, so those who regard gold as only a commodity are bearish but have almost certainly already sold. The four billion Asians who own most of the world’s gold take a different view, having learned through experience that their currencies collapse instead.
This sums up the opposing forces behind the gold price.  In futures markets the bets are in favour of shorting, while the Asians continue to buy physical. And this is why yet again, the London gold forward rate (GOFO) went sharply into backwardation last Friday when futures markets forced prices lower.
Prices for gold and silver sold off last week, with gold falling from a high of $1331 to a low of $1286 on Tuesday, and silver went as low as $19.22 at one point.
Silver’s open interest on Comex has been building and is now close to all-time highs at over 164,000 contracts. When the tide turns, silver should be the star performer.

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Are You Ready For The Price Of Food To More Than Double?

Do you think that the price of food is high right now? 
Just wait. 
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Deepcaster Unspins the Spin

“Former Assistant U.S. Treasury Secretary, Paul Craig Roberts, speculates that the U.S. Government has recruited its satellite countries, like Belgium, to compensate for the ‘tapering’ being done with purchases of U.S. Treasuries by the Federal Reserve.”

Indeed, “Tiny” Belgium is now the holder of the third largest Hoard of U.S. Treasuries. Fancy that!
It appears the Fed’s “Tapering” is being at least offset by Belgian Buying.
This and other shenanigans like Bogus Official “statistics” make the 2013 Equities Bull Run and the recent Equities Market Sell-Off unsurprising to us.
Deepcaster Unspins the Spin below: [Read more...]

Why Rick Rule Says ‘Anti-gold Investors Will be Destroyed’

stormGold has made its way down again, to around 1,300 per ounce this month. Rick Rule, Chairman of Sprott Global Resource Investments Ltd. says that a few years out, you will be happy you stuck with gold.
For context to today’s downturn, look back at the great bull market for gold in the 1970s’.
During that time, gold rose from $35 per ounce to around $200, and then came crashing down to around $100 per ounce. Weak hands, who lacked the courage or the financial strength to hold on, sold their gold. It was a disaster for them, but a great opportunity for investors who believed in the metal.  They were able to enjoy an 850% gain over the following five years. The ‘anti-gold’ investors watched as gold soared.
The next time gold soars, anti-gold watchers may not simply watch…they “will be destroyed.”
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The Dark Side Of The Silver Mining Industry

silver miningThere is an insidious Dark Side to the silver mining industry that goes unnoticed by the majority of investors and analysts.  Actually, I haven’t come across one miniyng analyst who puts out comprehensive data on this very subject for the silver mining industry.
According to my figures for 2013, the top primary silver miners suffered the lowest average silver yield ever.  That’s correct… another year of declining ore grades and yields.
For those analysts who believe the price of silver is heading lower in the future… the falling yields and increased costs will prove otherwise. [Read more...]

Are You Prepared for a Bull Market that Will Shock Even the Most Ardent Goldbugs?

gold bullJay Taylor understands why investors in gold and gold equities are consumed with caution. But the publisher and editor of J. Taylor’s Gold, Energy & Tech Stocks and host of the radio show “Turning Hard Times into Good Times” urges them not to lose sight of the big picture.
The big, bull-market picture. Gold juniors with cash and good projects are trading at tiny fractions of their worth. But not for long. In this interview with The Gold Report, Taylor argues that we are on the cusp of a bull market for the ages and suggests eight junior candidates for mind-blowing multiples.

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18 Stats That Prove That Government Dependence Has Reached Epidemic Levels

EBTDid you know that the number of Americans getting benefits from the federal government each month exceeds the number of full-time workers in the private sector by more than 60 million?  In other words, the number of people that are taking money out of the system is far greater than the number of people that are putting money into the system.  And did you know that nearly 70 percent of all of the money that the federal government spends goes toward entitlement and welfare programs?  When it comes to the transfer of wealth, nobody does it on a grander scale than the U.S. government. 
The following are 18 stats that prove that government dependence has reached epidemic levels… [Read more...]

Fed’s Stock Market Levitation Running Out of Steam!

fiscal cliffThe lofty stock markets are starting to wobble, with selloffs’ frequency and sharpness increasing.  The dominant reason the Fed’s stock levitation is running out of steam is severe overvaluation.  Stocks are just far too expensive today compared to historic precedent, a dangerous state seen when bull markets are topping. 
Rampant overvaluation is a glaring warning sign to investors that selling is just beginning. [Read more...]

GOFO Plunging Again- Indicating A Big Move in Gold?

freefallThe oppressive and illegal manipulation of the gold market is starting to show unintended consequences again.  At the beginning of April the LBMA (London) gold forward rate (GOFO) turned negative again.  It’s been getting more negative every day this month.
From January 1, 1989 – July 7, 2013, there were only seven days in which a negative GOFO was observed.   But since 7/7/2103, GOFO has been negative more than 55% of the time.  In other words, the market for physical gold that can be delivered into the custody of the buyer has never been tighter. [Read more...]

Jim Willie: Fed Has Lost Control, Systemic Failure Flashing Warning Signals Now!

Jim SinclairThe US Federal Reserve has been printing money since 2011 to cover USGovt debt securities in a frenetic manner. They have lost control. They call it stimulus, when it is actually the opposite. It does assist the speculators with nearly zero cost money to borrow, but one must be a club member to win loan grants. The Quantitative Easing programs are deceptive. When the program was initially announced, the Jackass claimed it would be part of an endless sequence. With QE1 and QE2 and Operation Twist and QE3, following the failed trial balloon called Taper Talk, it is quite clear to anyone with an active brain stem and absent rose colored glasses that the USFed is caught in a trap called QE to Infinity. It is not stimulative. Instead, the uncontrollable bond monetization causes capital destruction. It causes economic degradation. It causes lost jobs and vanished income. It is a gigantic wet blanket to smother and destroy the USEconomy slowly, amidst unending propaganda. QE is the device that will result in Systemic Failure, which is already flashing signals of its arrival. [Read more...]

Charleston Man Receives $525 Federal Fine for Failing to Pay for a $0.89 Refill at VA

VASome of you may wonder why of all the stories out there today I decided to focus on the $525 fine a construction worker in South Carolina received a for refilling his drink at a VA Medical Center without paying.
The reason is to highlight the difference between what happens when a peasant breaks the law versus when a banker does it.  [Read more...]

The Secret of The Seven Sisters & Black Gold

7On this slow Friday afternoon while the market is closed, and the Ukrainian crisis threatens to spiral into an all-out war, we present a four part documentary on the history of the oil cartels and how geo-political relations are dominated by black gold.
The Secret of the Seven Sisters & Black Gold: [Read more...]

What’s the Difference Between Fascism, Communism and Crony-Capitalism?

Lloyd BlankfeinThe essence of crony-capitalism is the merger of state and corporate power–the definition of fascism.
When it comes to the real world, the difference between fascism, communism and crony-capitalism is semantic. Let’s start with everyone’s favorite hot-word, fascism, which Italian dictator Benito Mussolini defined as “the merger of state and corporate power.” In other words, the state and corporate cartels are one system. [Read more...]

HFT: Rise of the Machines

HFTNo one has ever claimed that the financial markets are a level playing field. Equities, bonds, currencies, options and futures are not arenas that operate by equivalent standards for all parties. Great fortunes were built not by chance, but on superior information, known to the few.
Professional traders are not risk gamblers, but operate on the premise of special advantage. Through advance and proprietary techniques that reduce exposure hazards and provide exclusive head start triggers, which virtually guarantee profits, the elite firms dominate Wall Street. [Read more...]

Koos Jansen’s Exhaustive Summary of the Chinese Gold Market

China goldOn April 4, 2014 Alasdair Macleod published an extensive analysis on the Chinese gold market.  I felt obligated to respond to it by sharing my point of view and explain where I disagree with his analysis.  I think his estimates are largely overstated because he double counts certain demand categories.  Macleod states Chinese gold demand in 2013 was 4843 metric tonnes, according to me it was 2197 metric tonnes (my estimate excludes some hidden demand and PBOC purchases on which I have no hard numbers). Setting out our differences was incidentally a good occasion for me to write another in-depth analysis on the Chinese gold market.
I highly respect Macleod, who was probably working in finance when I was in diapers, and I’m very grateful he has been using my findings about SGE withdrawals and the structure of the Chinese gold market. I see very little commentators stepping into this realm, though it’s truly the most important economic event happening in our time.
Having said that, I present my analysis: [Read more...]