Gold – GLD Inflows Return

Stock-market capital finally started flowing back into the flagship GLD gold ETF for the first time in 14 months in February! 
Though this buying was small, this is truly a momentous event.  Extreme gold-ETF outflows were the dominant culprit behind last year’s epic gold selloff.  Without that massive influx of additional supply weighing on the global markets, gold is going to surge on strong physical demand. [Read more...]

Gold At 4 Month High – Concerns About China Property Bubble Grow

gold eagleGold is marginally lower in all currencies today but holding near its strongest level in four months. Concerns about the possibility of the Chinese property bubble bursting affecting economic growth in China and the world is supporting gold.  Nervousness over Ukraine, after new acting President Turchinov warned Ukraine is close to default, is also supportive of gold at these levels.
Indian and Indonesian buyers also continue to purchase gold: “We are seeing some buying, and there are purchases from India. Other clients are still buying some quantity, about 20 to 30 kilos each time,” a gold dealer in Singapore told Reuters.
The increase in gold ETF holdings could also reflect renewed interest from investors. SPDR Gold Trust, the world’s largest gold exchange traded fund, said its holdings rose 0.41% to 801.61 tonnes on Monday from 798.31 tonnes on Friday.
Gold has risen more than 11% this year in dollar terms, 10% in euro terms and 9.1% in pound terms due to renewed safe haven demand. [Read more...]

The GLD Two-Step

gold vaultMuch has been made recently about “metal flowing back into the GLD”. As if this is a sign that “investors are returning to the sector” and “the ETFs are working just as you’d expect”. Uhhhh….not so much. Let’s look at the actual numbers.
As you know, the gold price hit a Double Bottom on 12/31/13 at $1180. Since then, it has rallied over $140 or nearly 12%. But the GLD is now down YTD, falling from 798.22 mts to yesterday’s 795.61.  So, don’t buy this nonsense that “gold is returning to the GLD” and that “the ETFs are functioning just as they should”.

Physical gold is clearly in very short supply worldwide as demand is insatiable.
Continue to stack, while there’s still time. 

Harvey Organ: 20 Tons of Gold “Kilo Bars” Withdrawn From JPM Vaults & Headed to Hong Kong!


Gold VaultHarvey Organ joins the SD Weekly Metals & Markets Wrap this week to warn of a possible February COMEX Gold Default:

  • Continued decline in “registered” gold inventory at the COMEX- 2o tons of gold “kilo bars” withdrawn from JPM vaults headed to Hong Kong!
  • 2014 will mark the year where physical forces deep “managed retreat” in the least
  • Geopolitical and Global Macro review:  From MyRA & pension fund confiscation to Ukraine & Emerging Markets
  • Fed Taper Review- Eric believes the Fed will overshoot tapering to $50 billion/month, while Harvey believes Wednesday’s taper will be the last
  • Harvey discusses why February may very well see strains to the point of the long anticipated COMEX default in gold!

The SD Weekly Metals & Markets with Harvey Organ is below: [Read more...]

The Price Of Gold: The Fed’s 60 Seconds Of Desperation

The price of gold was remarkably smashed $35 in the space of 60 seconds at 10:14 a.m. NY time Monday morning12,000 contracts hit the market almost all at once.  To put this size in context, on Friday a little over 107,000 Feb contracts traded during the entire 23 hour Globex system session.  In other words, Monday at 10:14 a.m., a little over 11% of Friday’s total volume traded in the space of  1/1380 th of the entire Globex session for a given period.
The hit came from nowhere and halted a strong rally in the price of gold that began last night in Asia.
This is the unmistakable sign of desperationDesperation to keep a lid on the price of gold in an attempt to make the public believe that everything is ok in this country and with the U.S. dollar.  But we all know otherwise… [Read more...]

Gold ETF Selling at a Tipping Point

fiscal cliffGold’s worst year in memory was largely the result of extreme paper gold-ETF selling.  A flood of gold supply hammered gold prices as stock investors around the world aggressively dumped gold ETFs.  They were rotating out of gold to chase the Fed-driven stock-market levitations.  But as toppy stock markets inevitably reverse, so will capital flows.  Gold-ETF outflows are already waning, and will soon shift to accelerating inflows. [Read more...]

28 Miles of AGEs

While we sit and watch JPM roll their Dec13 gold position and smash price in the process, I thought we should have some fun by putting this year’s GLD pillaging into context. [Read more...]

The United States Crossed The Rubicon On Its Path To Collapse

gold collapseSince the Lehman crisis in 2008 it turns out that gold and silver have been the number 1 and number 2 best performing investments.  I bet that surprises everyone who is reading this.  Despite this nasty two-year correction, if you invested every penny in gold and silver, you have outperformed every other possible asset class.  And get ready for the next move higher in gold and silver, because our system is in worse shape and further along its collapse than it was in 2008.  Goldman Sachs knows this and that’s why – despite their analyst report that says gold could still go lower here – Goldman Sachs – the firm – became one of the largest holders of GLD during the 2nd quarter of 2013. [Read more...]

GLD Exodus Reversal

Zeal081613AThe flagship GLD gold ETF has suffered a radically unprecedented mass exodus this year.  But just this week, money started flowing back into GLD for the first time in months.  This likely marks the dawn of the GLD exodus’s reversal, which is wildly bullish for gold.  Falling stock markets will play a critical role. [Read more...]

Gold Trader: “GLD Gold Is Being Shipped Directly To Asia”

I had the chance to reconnect with a source in the bullion management business, whose operations deal on a direct basis with the shipping desks at the GLD. While remaining unnamed at this time, it was a powerful conversation, and he was quite liberal in sharing thought.
Speaking to what his group is hearing from the main GLD custodian, he noted that, “GLD is collapsing in [terms of] the number of share issuance, and [is] being redeemed…we are hearing from my end…that the GLD main custodian has been collapsing it and redeeming it, and that gold is just being shipped via their shipping desk directly to Asia.”
He further added that, “It is quite clearly a major establishment using their shipping desk to ship gold bullion, and potentially having it re-smelted down in Singapore, Hong Kong, etc.   It (the gold) is moving.” [Read more...]

Largest Swiss Bank Launches Gold-Vault Service in Singapore

gold vaultBloomberg reports tonight that UBS has launched a gold vaulting service in Singapore and will make its bullion vaulting services available for clients in Singapore and Hong Kong.  UBS joins Deutsche Bank and JP Morgan in offering bullion storage facilities in Asia.
Perhaps this is where the approximately 300 tons of gold drained from the GLD over the past 6 months was headed? [Read more...]

SD Metals & Markets With T. Ferguson: Bullion Banks Ready to Ride the Silver Rocket!


Turd Ferguson of joins Eric & The Doc this week as a special Gust Host on the SD Weekly Metals & Markets!

On this week’s show, we’ll cover a number of topics, including:

  • The Doc’s recap of physical market trends and the continuing physical gold & silver shortage

  • Massive and unprecedented physical demand in Asia, coinciding with a historic draw-down in GLD inventory

  • Prospects for a summer rally in bullion

  • TF discusses a massive shift in the silver COT, as the commercials have doubled their long position since QE∞ was announced

SD Weekly Metals & Markets with Guest Host Turd Ferguson is below! [Read more...]

Eastern Hemisphere Physical Gold Buying is Going to be the Federal Reserve’s Waterloo!

Source: Merk Investments

Connecting all the dots, there is no question in my mind that the big price smashing of gold in mid-April was an operation designed to shake loose enough 400 oz. gold bars out of GLD in order to satisfy the enormous delivery demands coming from Asia, India and even within Europe GLD is the only possible source of above-ground 400 oz. gold bars that could be used to satisfy this enormous demand for physically deliverable bars.
At some point, and probably sooner than most people are willing to believe, this physical demand is going to force an upward “explosion” of the paper derivatives being used to hold down the spot price right now

In 30 years of studying and trading the financial markets, I have never seen contrarian indicators for any market sector flashing as bullishly as they are for gold and silver, which further confirms my view that the metals have bottomed and are getting ready to give those of us who held on the ride of a lifetime. [Read more...]

Chart of the Day: GLD Inventory Exodus

gld-etf-volume-25-april-smallThe graph below shows that since the beginning of this year nearly 250 tons of gold from the vault removed is.   A reported volume of 250 tonnes of physical metal would be good for a 22nd place in the world ranking of countries and entities with the largest gold reserves, a place between the 280 tons of gold from Austria and 227.5 tons of Belgium. The chart below contains the data that the SPDR Gold Trust put daily on its website, along with a daily fixing of the gold price.

The exodus of gold from GLD inventories has continued, even as the price of gold has rebounded over the past 2 weeks.

Visual evidence of GLD’s draining inventory is below: [Read more...]

SD Weekly Metals & Markets: JPMorgan Fumbles the Gold!

In this week’s SD Weekly Metals & Markets, The Doc & Eric Dubin discuss:

  • This week’s big rallies in gold and silver
  • EPIC draw-down of JPMorgan’s gold inventories, and reports that wealthy Europeans are demanding physical delivery of allocated gold positions held in JPM vaults
  • Silver shortage update: silver shortage spreads to 100 oz bars!
  • What’s ahead for gold and silver next week with the Chinese markets closed Monday-Wednesday and the FOMC meeting Tues-Wednesday: is the worst behind us or with metals stocks rolling over late Friday, is another epic paper metals dump by the cartel imminent?

This week’s MUST LISTEN SD Weekly Metals & Markets is below: [Read more...]