gold bottom

The firmly entrenched bearish opinions in recent months for the outlook for gold and silver have backed off from recent extremes.
There is confusion in dealers’ minds, brought about by the threat of deflation and the collapse in oil prices.  Whereas hedge funds would automatically sell gold whenever they detected dollar strength, this is no longer the case.   Precious metals now seem to be responding more to the threat of global financial instability triggered by a strong dollar, and fund managers are selling other commodities instead. Indeed, it is remarkable that despite the USD hitting new highs against nearly all currencies, 
gold has not only held its ground but is actually rising.

HarveyOrgan

Now for the wild silver comex results:   Silver OI rose by 1022 contracts from  152,879 up to 153,901 despite the fact that  silver was down by 9 cents  yesterday. The front January contract month saw its OI lower to 15 contracts for a loss of 76 contracts. We had 76 notices filed yesterday, so we neither gained nor lost any silver contracts standing for silver in the January contract month.
The next big contract month is March and here the OI rose by 430 contracts up to 103,678.  The estimated volume today was simply awful at 12,034. The confirmed volume yesterday was fair at 37,951. We had 0 notices filed for nil oz today.
It sure looks like the bankers have scared away all investors wishing to play the COMEXLeverage has completely disintegrated.

HarveyOrgan

In gold we had a monstrous increase in OI with the rise  in price of gold  yesterday to the tune of $15.40. The total comex gold OI rests tonight at 394,021 for a gain of 15,536 contracts. The January gold contract reads 133 contracts.  The bankers were not afraid to supply the non backed gold comex paper.

dynamite

Today we had a lot of developments.  First WTI broke into the 47 dollar column creating havoc for our sovereign countries loaded with oil e.g Canada, Russia, USA, England (North sea), Venezuela etc.  The dollar keeps rising due to the breaking up of the dollar carry trade.
As we have mentioned to you on many occasions, this in turn blows up the derivatives in oil and the major banks who have underwritten much of these contracts when oil was north of 100 dollars per barrel.
It certainly looks like the bankers are having a tough time trying to contain gold– 
Generally the bankers do not like to see gold/silver rise on two consecutive days, but that is exactly what we got today…

gold repatriation

Yesterday we received news that the FRBNY withdrew 47 tonnes of gold, of which 3 tonnes went to Holland and the remainder, most likely, was Germany. We will probably have a statement officially from Germany on that matter.
If true, it would certainly kibosh the Bloomberg story earlier in the year as totally false. (that Germany does not want to repatriate the gold stored at the FRBNY)

No doubt we are now seeing central banks no longer trust each other as confidence falters.  As Bill Holter constantly reminds us, this is the biggest run on the banking system, the repatriation of one’s gold.
Germany is going to have a tough time explaining why Holland received its 122.5 tonnes before Germany got hers with a further question as to why it is taking longer to repatriate Germany’s gold with the added fact that Holland got their gold in less than one year.

Gold Bundesbank

The big news today came from the FRBNY where we witness $64 million dollars worth of gold leave the bank (and New York shores) to repatriate the last amount owed to Holland and most likely Germany has resumed her repatriation.
This gold is valued at $42.20 per oz and thus 1.516587 million oz (47.17 tonnes) leaves the bank.
We know that Holland was to receive its last 3 tonnes in November (they have thus repatriated 122.5 tonnes from the beginning of 2014).  Since Germany is the only country that officially has asked for her gold back, you can safely assume that Germany has received 44 tonnes of her 1500 tonne hoard held in NY back to Frankfurt. 
The repatriation leaves behind a HUGE MESS OF DERIVATIVES as there is approximately 100 paper obligations per one oz of gold repatriated!

JP Morgan
Play

The Doc & Eric Dubin discuss this week’s PM raid on thin holiday volume and look forward to whats in store for 2015 in this special Holiday Edition of Metals & Markets discussing: 

  • Eric explains why 2015 will see a supply deficit in silver for the first time in years
  • Given the Titanic Volume turnover in mining shares- the capitulation bottom in gold & silver has ALREADY Occurred! 
  • Ruble stabilizes and recovers as China backstops Russia
  • Oil free-fall continues- what’s in store for 2015? 

The SD Weekly Metals & Markets With The Doc & Eric Dubin is below: 

JP Morgan

GLD suffers a HUGE holiday loss of 11.65 TONNES OF GOLD FROM INVENTORYS/A HUGE LOSS OF 7.566 MILLION OZ FROM THE SLV- ENGLAND MUST BE BLEEDING PRECIOUS METALS PROFUSELY HEADING TO CHINA, INDIA AND RUSSIA!

Putin ammo shortage
Play

Gold & currency expert Alasdair Macleod joined The Doc & Eric Dubin this week for an EXPLOSIVE show discussing: 

  • End game to Russian Ruble collapse: Putin may take the Ruble onto the GOLD STANDARD– if Russia detonates this Nuclear Financial Weapon, the West is DEAD! 
  • Macleod: ABSOLUTELY NO GOLD STOCK IN THE MARKET SUB $1200!
  • Did the US/Saudi Arabia plan the oil crash to collapse Russia & the Ruble? -Putin’s counter-move could result in an EPIC BACKFIRE for the West
  • Is a Global currency crisis is in the making!?!
  • Alasdair provides his outlook on gold & silver, and explains why 2015 is likely to be an EXPLOSIVE YEAR for the metals after a prolonged consolidation- but PM investors won’t like what comes along with MASSIVELY HIGHER gold & silver prices! 

The MUST LISTEN Metals & Markets With special guest Alasdair Macleod is below: 

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Renowned silver guru David Morgan joins Reluctant Preppers to discuss the evidence for realizing that the United States is following the final stage of all empires – the collapse stage – in this episode named after the documentary, “The Four Horsemen of the Apocalypse.”
After previously stating silver would bottom at $30, Morgan makes his call on whether the bottom is finally in. 
Morgan provides an overview on Silver fundamentals- have they deteriorated since 2008 or are they stronger than ever? 
David concludes by discussing just how much silver is enough to survive the coming debt apocalypse? 
David Morgan’s full MUST LISTEN interview is below: 

gold market tipping

In today’s trading, for the umpteenth time, gold surpassed the $1200 mark only to be repelled back.
Gold’s zenith was $1212.00 set at 5 am early this morning and its nadir at $1193.50 at 11 am (well after London’s second fix).
I strongly believe that gold at 1200 is very toxic to our bankers with the huge number of derivatives and forwards placed.

silver oil ratio

Based on the historic 1960’s oil-silver ratio, the current price of silver should be $50 an ounce!
According to the 1960’s Oil-Silver ratio of 1.3/1, the price of silver would have peaked in 2011 at $85.58, and would still be $50 with the current price of a barrel of oil at $64
The U.S. & Global Retirement Markets are being propped up by the Fed and foreign central banks.  Without this continued manipulation, the value of most paper assets would implode.  Furthermore, the coming peak of global oil production will be the final nail in the CENTRAL BANK’S COFFIN.

As the value of the highly leveraged financial-derivatives market heads south in earnest, investors will be forced to move back into hard assets, such as the precious metals and commodities.
This will push the value of these assets up to levels thought unimaginable.

$50 silver is coming… however that will probably be just the beginning stage of a much higher price in the future.

silver smash

The banksters obliterated gold and silver today as Russia announced an emergency rate hike of 650 basis points, raising rates on the Ruble from 10.5% to 17%, sending the USD plunging vs the RUB! 
Let’s head immediately to see the major data points for today:

Gold Eagle

Gold was the safe haven this week.
This week precious metals continued their recovery, with gold up $35 at $1220 and silver up about $1 at $17 Friday morning, thus building on the improved trend since gold bottomed nearly $90 lower at $1132 on 7 November.
Gold seems to be finding support at the 50-day moving average (MA), which currently stands at $1198 and now rising.
The 200-day MA is at $1246, which suggests supply at this level could cap the rise for the moment: these levels matter to technical traders.
On Comex there is evidence of some buying of gold futures, as opposed to bear closing, which is reflected in the rise in net contracts for the managed Money category shown in the chart below:

Bernanke-Dimon-Fed-Tunnel

The Doc and Eric Dubin from SilverDoctors & SD Bullion joined the SGTReport this weekend to talk about all things silver.
We discuss the new record in silver eagle sales and the fact that in ancient Rome, payment for a hard day’s labor was 1/10th of once ounce of physical silver.
Today, due to the massive manipulation, a person earning $50,000/year is compensated with the equivalent of 10-11 ounces of physical silver per day.
More than 100 times the historic norm — and it’s only possible because silver is the most manipulated, most undervalued tangible asset on earth.
The Doc points out that with the current silver gold ratio over 70 to 1, while the earth’s mining output in 2013 was a mere 8.3 to 1, a move to fundamental valuations could see silver place a 10 bagger vs gold!

The Doc & Eric Dubin’s full interview with the SGTReport is below: 

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In silver, the open interest fell by a small 823 contracts with yesterday’s rise in price of  $0.02.  Looks like some of the shorts are vacating the arena.
For the past year, we have been witnessing massive liquidation of contracts despite the fact that it cost nothing to roll.  This makes no sense and it smacks of cash settlements which are totally illegal.
Since I have been following comex data, I have never witnessed such a massive liquidation in both gold and silver.