Get Your Phyzz From The Doc

“Nothing fancy.  Just a telephone and low prices.” 

 

Call Now To Order At 614-300-1094

 

Doc’s Deal Of The Day

2012 Canadian Silver Maple Leaf


AS LOW AS $2.09 OVER SPOT!

>500 ounces $2.09 over Spot
100-499 ounces $2.29 over Spot
40-99 ounces $2.59 over Spot

 

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The Baltic Dry Index is rolling over, falling 3.65% Wednesday to 950.  The BDI has failed to even make it near the top of its massive downtrend channel before beginning its next leg down and has rolled over at critical support/resistance, meaning it’s likely only a matter of time before the BDI challenges its all-time lows near 630.

Gold fell and tested support at $1,530/oz but then bounced very sharply and rose by nearly $40 from $1,532/oz to $1,570/oz. US stocks and commodities remained under heavy pressure and the benchmark S&P 500 ended down 1.43%.

Gold consolidated on yesterday’s gain in Asia and during European trading it is challenging resistance at $1,570/oz.Gold is set to incur its 4th month of losses which has not been seen in nearly 13 years. Interestingly while gold in dollar term is off 6% in May, the sharp fall in the euro means that gold has again risen in euro terms and is up 0.3% in euro terms in the month.

Meanwhile, stocks and commodities have had a torrid month with sharp falls seen and gold outperforming nearly all major equity indices.

Bloomberg reports tonight that JP Morgan’s CIO unit may have mis-marked derivatives by hundreds of millions of dollars– meaning the unit consistently valued at the bid vs. the ask or vice-versa vs. the pricing/valuation given by its credit default swaps dealer.

In layman’s terms, this means that JP Morgan’s CIO unit was valuing its IG9 derivatives and hedges above their actual market value in order to prop up valuations and earnings, and thus bonus packages.  Hundreds of millions of dollars overvalued.

While hundreds of millions of dollars is likely chump change compared to The Morgue’s $8 billion in already admitted losses related to the IG9 10 year index, and likely substantially more in interest rate swaps losses, this is a MEGA issue for Jamie Dimon & JP Morgan’s management for one reason: in the words of former Lehman Brothers’ CFO Sanford Bernstein: ‘I’ve never run into anything like that, That’s why you have a centralized accounting group that’s comparing marks” between different parts of the bank “to make sure you don’t have any outliers.

It will be supremely ironic if Jamie Dimon ends up being forced out as CEO of JP Morgan not due to silver manipulation, IG9 losses, IR swap losses, or even mortgage fraud, but because he failed to ensure proper accounting and valuation of the bid vs. ask of a small tranche of delta hedges.

Submitted by SD Contributor Marshall Swing

Silver COT Report 5/25/12

Commercials sold off -1,018 longs but managed to cover -1,704 shorts to end the week with 45.89% of all open interest and now stand as a group at -76,110,000 ounces net short, another huge decrease of almost 3,000,000 ounces net short from the previous week.  No one seems to comprehend what these criminals are up to in their strategy to get out of net short positions.

Our apologies for the delay in this week’s COT report due to the holiday weekend.

Submitted by SD Contributor Marshall Swing

Gold COT Report 5/25/12

Commercials bought a significant 2,134 longs and covered -1,185 shorts to end the week with 55.21% of all open interest and now stand as a group at -13,559,800 ounces net short, another significant decrease of over 350,000 ounces net short from the previous week.

Welcome to Capital Account. On today’s show, we have a story you may have not heard before, from a person that you have definitely not heard from before. It’s a story about America’s financial crisis, its mortgage crisis, and the foreclosure fraud that enveloped the United States during the past decade. That person is Lan T. Pham, the famous CBO whistleblower who was fired from her job for telling the truth about systemic fraud and corruption in America’s mortgage market and financial system.

In what CNBC calls ‘a stupid decision‘, JP Morgan has reportedly sold $25 billion in profitable bonds and securities to offset trading losses from its IG9 derivatives crisis.

If it was merely an effort to prop up earnings for JPM’s Q2 report we would agree, but this is more likely JP Morgan LIQUIDATING CAPITAL TO MEET MASSIVE MARGIN CALLS OVER ITS ESCALATING INTEREST RATE SWAP LOSSES, which we have discussed are reportedly close to $100 Billion.   Bankers are not fools, throwing good money after bad.  If JPM sold $25 billion in profitable positions, it is because IT WAS FORCED TO.

JPMorgan Chase has sold an estimated $25 billion of profitable securities in an effort to prop up earnings after suffering trading losses tied to the bank’s now-infamous “London Whale,” compounding the cost of those trades.

Get Your Phyzz From The Doc

“Nothing fancy.  Just a telephone and low prices.” 

 

Call Now To Order At 614-300-1094

 

Doc’s Deal Of The Day

SD Bullion’s JPM Appreciation Day: $7.99 Shipping on ALL Silver Orders, PLUS…

1oz  Silver Buffalo’s  $.99 Over Spot, ANY QUANTITY!!


2012 Silver Eagle’s  $2.69 Over Spot, ANY QUANTITY!!

2012 Silver Maple Leaf’s $2.19 Over Spot, ANY QUANTITY!!

WEDNESDAY ONLY! Call NOW to Order at 614-300-1094

Two years after Mark Dice’s attempted to sell a 1 oz gold coin on the blvd in Southern California with no success and the video of the event went viral, Dice has taken to the streets again with the same offer.

Surely with gold trading nearly 60% higher than it was with Dice’s last attempt ($900) vs $1550, and two more years into gold’s bull market, someone will GLADLY take up Dice on the deal of a lifetime to purchase gold for 33% UNDER its 1930’s fixed price of $35/oz, right?    RIGHT?

STACKERS WON’T BELIEVE THIS!!

The 10 year T-bond continues to soar today as the European debt crisis/panic intensifies, with the 10 year placing a NEW LOW of 1.639%.  With actual inflation running ~9-11% per Shadow Stats, this means that investors can expect 7.5-9.5% real losses compounded annually for 10 years for the privilege of loaning cash to the US gov’t.

As SD reader Plebian put so eloquently:

The investment world has become a life raft, and US treasuries and government bonds are like the sea water.  Out of grave thirst, many are drinking the sea water, thinking that, if everyone drinks of it, it must be good.  But in the end, the fate of those buy government debt will be like the fate of those who drink sea water to quench thirst while being stranded on a life raft.

The analogy is superb, and is EXACTLY what is occurring in the market.

 

YOU GOT TO LOVE THE TECHNICIANS AT A TIME LIKE THIS

The system is so beyond saving, its still funny reading and watching the TECHNICIANS explaining SUPPORT & RESISTANCE LEVELS.  Again, this diatribe is not meant for the folks I admire… just the majority who still think we have FAIR MARKETS.  The one good thing out off all this mess is the SILVER INVESTORS are starting to buy SILVER EAGLES again:

World citizens look out: historically competitive Illuminati factions the Rothschilds & the Rockefellers reportedly are merging as Rothschild Investment Trust and Rockefeller Financial Services.

No word on whether Rothschild’s Sewage & Septic Sucking Services will be renamed Rockchild’s Sewage & Septic Sucking Services.

Determined selling at the $1,580/oz level capped gold yesterday prior to a bout of sharp selling. This saw gold quickly fall $20 from $1,575/oz to $1,555/oz on heavy volume. Tuesday’s COMEX gold futures volume was well over 450,000 lots – which is close to the record for 2012 and volume more than doubled its 30 day average.

The Doc spoke with financial/metals analyst Harvey Organ this weekend to discuss the escalation of the European debt crisis, JP Morgan’s derivatives crisis, and the gold and silver markets.

Harvey believes that the panicked reactions of multiple federal regulatory agencies indicates that JP Morgan’s losses are likely much more critical and severe than the mere $8 billion lost in the IG9 tranche, and states the data indicates JP Morgan is unwinding a portion of its $50 Trillion in interest rate swaps.

Harvey fears that the losses on JP Morgan’s interest rate swaps could already be $100 billion, and ‘COULD BRING DOWN THE WHOLE FINANCIAL SYSTEM OF THE WORLD!

Harvey states ‘If JP Morgan’s involved it really is The Fed itself, and if The Fed’s blowing up that will just about be THE explosion heard throughout the world.

House Banking Committee

Our favorite former bank regulator William K. Black has been dis-invited from testifying before the House Banking Committee on derivatives out of a fear of a public ‘bank bashing’.
Black has discovered a fundamental truth about a nation decaying morally and financially:
One Must Not Speak Unpleasant Truth to Power.

From Bill Black:

Today, I received definitive word that I had been disinvited from a bipartisan briefing of members of Congress on the subject of financial derivatives. I have deleted the name of the staffer because he is not the issue. The relevant email thread is below.

China and Japan are scheduled to start trading in their own currencies Friday. The Japanese Finance Minister came out with this news. This allows traders to trade in Yuan and Yen without first converting them into Dollars. So, we’ll talk about what this means for the us dollar: the global reserve currency. Are we headed towars a world where no single currency reigns supreme — an end to what French President Charles De Gualle famously recognized as America’s “exorbitant privilege?”

And more trouble in Europe as Spain’s borrowing costs over Germany’s rise to the highest level since the start of the Euro according to the Financial Times. The rescue of Bankia is reportedly what has investors wary, with concern about the terms of the 19 billion Euro bailout. This is jus one in a string of events we’ve seen over the last several months that you might think would have investors running to safe havens like gold. So why has gold been on a downward trajectory since last August then — almost one year? Is it not a safe haven after all? John Butler, author and veteran of global finance, is here to tell us why that’s not the case.

Germany has just gone for the gold, releasing ‘The Redemption Pact’ in which Germany will agree to stabilize the southern European nations (PIIGS) in exchange for the debtor’s pledging their GOLD RESERVES.

Now why would Germany be interesting in pledges of ‘tradition’ in exchange for debt relief?