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...]
Since 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...]
The 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...]
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...]
Bloomberg 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...]
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...]
The 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...]
Gold has faced stiff headwinds lately as investors abandon alternative investments to chase record-high stock markets. Probably the most significant has been the major selling hammering the flagship GLD gold ETF. It has suffered such intense differential selling pressure that its custodians have been forced to dump enormous quantities of physical gold. What are the implications of this flood of new supply?
The amount of gold bullion GLD has hemorrhaged recently is amazing. To put it into perspective, earlier this week the rumor that embattled Cyprus may be forced to sell its official gold reserves made news. The Cypriot government owns 13.9 metric tons of gold. But on a single trading day alone in February’s gold capitulation, GLD had to sell 20.8 tonnes! The supply recently added by GLD dwarfs everything else. [Read more...]
Outflows from the world’s biggest gold exchange traded fund, the SPDR Gold Trust (ticker: GLD), continued yesterday for the eleventh day running, taking the total volume of gold held to back GLD shares to its lowest level since November 2011.
“It is really a tug of war between ETF selling and physical buying right now,” says Yuichi Ikemizu, head of commodity trading, Japan, at Standard Bank. “We have seen quite good physical demand from China and Southeast Asia, but the ETF selling has put a lid on gold prices.” [Read more...]
Our friend Eric Sprott of Sprott Asset Management was interviewed by TrimTab’s Charles Biderman over the weekend. Biderman, who previously has recommended investors purchase GLD and SLV for gold and silver exposure, receives an education on paper vs. physical by Sprott.
Sprott informs Biderman on Doc’s rule of If You Don’t Hold It, You Don’t Own It!, stating: Always have access to your physical!
Sprott’s full interview below: [Read more...]
Blythe and Jamie appear to be tying up loose ends, as JP Morgan has reportedly won regulatory approval for the US copper ETF, the JPM XF Physical Copper Trust.
JPMorgan Chase & Co. (JPM) won regulatory approval for the first U.S. exchange-traded fund backed by physical copper, which some industrial users said may disrupt the market. [Read more...]
In what is no doubt a propaganda piece designed to attempt to slow the gold repatriation and audit request freight train, the Bank of England has taken the unprecedented step to allow University of Nottingham chemistry Professor Martyn Poliakoff to take a video tour of the BOE’s gold vault.
Poliakoff excitedly proclaims that he has never seen this much
tungsten gold (or this much of ANY element he clarifies), and states that his gut tells him that one’s first reaction is that it can’t possibly be real.
Poliakoff lets out a little too much truth in his interview (perhaps the BOE should have commissioned someone from the BBC to conduct the interview rather than a Chemistry professor?), stating that the reason the BOE and the central banks keep so much of their reserves in gold is because the value of gold is very stable compared to the value of currencies.
He also explains how the futures market really works: Each bar has a serial number, and when people buy and trade the gold, they don’t actually take the bar home, the number is just transferred from the seller’s account to the buyer’s account. (What Poliakoff doesn’t mention is whether each bar has been rehypothecated to numerous owners as Ned Naylor-Leyland discovered was the case with Bob Pisani’s GLD bar last spring)
Poliakoff’s MUST SEE full video tour of the Bank of England’s gold vault is below:
Harvey Organ joins us again for an explosive interview discussing this week’s breakout in gold and silver, the developing ‘TREMENDOUS PHYSICAL SHORTAGE‘ in the silver market, and concerns with unallocated gold and silver accounts, which Harvey describes as nothing but paper notes and obligations.
Harvey also discussed recent reports that the LBMA is refusing to deliver silver outside of the LBMA system: They won’t deliver it outside of the system because there is no silver! That’s a real crisis! The moment London is out of metal, the COMEX will be out in a nano-second!
Harvey also discusses Romney’s threat to fire Bernanke and what it means to Fed monetary policy prior to the elections, the Republican party’s announcement of the development of a ‘gold commission‘ with the goal of returning the US to a gold standard will be official Republican policy and MUCH MORE.
The Doc’s FULL MUST LISTEN interview with Harvey Organ below: [Read more...]