Precious Metals Fund Manager Dave Kranzler joins the show this week to discuss:
- Cartel capping gold at $1300 and silver at $20
- London silver fix to end in August after 117 years- is the end of the silver manipulation at hand?
- Kranzler discusses the Smoking Gun on The Fed’s money laundering US Treasury purchases through Belgium
- We break down Ted Butler’s claims that JPM is buying all the Silver Eagles– is Jamie Dimon suddenly attempting to corner the ASE market, or is the American public finally waking up?
The SD Weekly Metals & Markets With The Doc, Eric Dubin, & PM Fund Manager Dave Kranzler is below:
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“We have not seen gold just as money, it is related with all aspects of our social life. We have always attached the term ‘gold’ with anything good in our life. In our society, gold is connected with security, respect and a friend in need during hours of crisis. It is also related to the well-being of our daughters through exchange of the matter during marriage times. After a doctor, the goldsmith is the most trusted man in the family.” — Narendra Modi, India’s Bharatiya Janata Party (BJP) Leader and Majority Victor of this week’s Indian Election
If it wasn’t for Bloomberg News taking the Federal Reserve to court over the Fed’s failure to comply with freedom of information act requests, the world would never have learned about gargantuan credit swap lines opened up with the ECB following the 2008 crash. Truth is, outside the Fed’s marbled halls, no one really knows how large these swap lines ultimately were, nor what relationships exist today. But we’re talking about tens of trillions of dollars. That’s right. Tens of trillions of dollars. Compare that to angst over the official Federal Reserve balance sheet bloat of $4.3+ trillion. With this ocean of liquidity as context, Metals & Markets reported weeks ago about Belgium’s highly suspect treasury bond purchases.
The latest Treasury International Capital (TIC) report shows the pattern continues. Dave Kranzler and Dr. Paul Craig Roberts reviewed the data and published must-read articles this week. Click here and here. Notice the sudden change in Belgium’s purchases in yellow after many months of relative stable inventory:
Belgium’s economy is relatively small. It’s pretty much inconceivable to see this leap higher in bond treasury holdings based on Belgium-based funds. It’s not as if a handful of skyscrapers in Antwerp were sold and the government parked the money in US treasuries. Tune into the show for Dave’s analysis. The Fed killed the reporting of the money supply aggregate M3 a few years ago. Maybe the Treasury’s “TIC” report is next?
As expected, Narendra Modi, the pro-business leader of the Bharatiya Janata Party (BJP) swept India’s election. This is a major positive for the gold and silver market. But naturally, as has been the case with nearly all precious metals bullish events over the last decade, gold and silver were taken down on raids Thursday and today. The counter-intuitive price action in the face of bullish international events has a correlation even greater than take-downs on non-farm payroll releases. It’s simply astounding, and arguably demonstrates the importance the cartel places on attempting to destroy any notion of gold and silver serving as safe haven or acting according to historical norm, per the days when it wasn’t seen as a “barbarous relic.”
It’s important to set this price action against the context of the latest real estate data release, and who better to turn to than Dave Kranzler given that he’s been spot-on about the real estate market for months. Kranzler was quoted in Bill Murphy’s newsletter today:
“What makes the hit on the metals even more absurd is that if you drill down below the ebullience of the headline reports for housing starts, the line-item numbers are extremely bearish. More on this later.
The metals started selling off 10 minutes before the Comex opened, the big hit occurred right at the Comex open and then again when the housing data was released.”
For the time being, $20 silver and $1300 gold are being defended with great force. But the good news is that a huge amount of money is sitting on the sidelines, ready to be employed by buyers once silver dips to $19 and gold dives to sub-$1280 levels. These “smart money” buyers know what the Fed and Treasury are doing.
Click here if you’d like a two week free trial to Bill Murphy’s newsletter — and no, he’s not paying us for the plug. It’s a great letter. While I’m in plugging mode, Dave Kranzler will be publishing research reports on mining companies and special situations, offered on an à la carte basis. It will be nice to have additional research perspective. He should have the offering up and running soon at Investment Research Dynamics.
For additional weekend reading, I recommend clicking here for a flashback to an insightful Indian press article on Narendra Modi and BJP perspective on gold.
On a final note, the CME lowered gold and silver COMEX trading margins yesterday. Makes you wonder what that Reuters story about placing trading bands on gold and silver given fears about high volatility was about…
Have a great weekend — Eric Dubin, Managing Editor, The News Doctors