Today is Wednesday
Which means that tomorrow is Thursday. Well, that's exciting!
So here we are. The metals aren't sharply rebounding but at least they're not still falling. Intelligent people around the globe are rushing to gobble up as much gold at "sale prices" as possible. Here's a good summary link from ZH: http://www.zerohedge.com/news/2013-04-17/gold-buying-frenzy-continues-china-japan-and-australia-scramble-physical And of course, anecdotal stories about retail shortages persist here in the U.S. Though certainly some dealers are simply refusing to sell at the current price (no doubt at a loss), many report to simply being "sold out".
The U.S. Mint continues to sporadically report its sales data. They haven't updated since last week, so the numbers on their site are suspect. http://www.usmint.gov/mint_programs/american_eagles/?action=sales&year=2013 Regardless, as you can see, Silver Eagle sales are trending quite well and look at the Gold ounces! For April month-to-date, 83,500 ounces have already been sold. Compare this to 62,000 for all of March and 80,500 for all of February. Additionally, April of 2012 saw just 20,000 total where April 2011 had 108,000. Clearly we can throw another big, anecdotal log on the fire.
Moving along, as you know ole Harvey keeps track of gold deliveries every day so check this out. Back on First Notice Day, the April gold contract had 6,601 contracts standing for delivery. Since FND, the amount standing for delivery has increased to 11,141. That's an increase of 4,540 contracts or 454,000 ounces! That's a lot. Recall that many of us tied the February takedown to the unusually high (14,000+) number of contracts standing for delivery that month. Is this current beatdown also related to Comex delivery? And one more thing...1,114,100 is 34.65 metric tonnes. OK, hold onto that number for a moment...
Last Thursday, I wrote the post on GLD in which I tried to give you some measure of the scale of the "inventory" reductions. When I typed that post, the GLD allegedly held in "inventory" 1,183.53 metric tonnes of gold. As of last night, the GLD is down to 1,145.92. That's a reduction of...wait for it...37.61 metric tonnes. (Oh, and we're supposed to think that gold sold off because Cyprus is being forced to sell 10 mts.) Now down exactly 204 metric tonnes YTD, the alleged GLD "inventory" has fallen 15.11% since 1/2/13.
But back to just the last 4 days. Another 37.61 metric tonnes is 1,209,189 troy ounces or another 16 pallets.
Here's another link for you. As you know, I got my "start" at ZH a long time ago. One of the guys hanging around back then went by the name "Gordon Gekko", as in the "Wall Street" character. Anyway, he was always a sharp dude and he now has his own blogspot site, too. On there yesterday, he posted a terrific piece echoing many of the same things we consistently advocate here. You should read this: http://www.gekkosblog.com/2013/04/buy-physical-gold-now-discount-of.html
As we look at the mainstream media, here are two items that are completely surprising, considering the sources. First, here's a link from The Telegraph. Can you believe that this actually made it past the editors and into print? http://blogs.telegraph.co.uk/finance/thomaspascoe/100024081/the-gold-price-crash-is-further-evidence-of-market-rigging/ And then last night, while I'm at the gym, The Idiot Cramer is on discussing gold. Since he discussed it using many of the same metrics we use here, maybe I should lighten up on him a bit. Perhaps he's a closet Turdite? Maybe both he and Santelli appreciate the finer qualities of canned bacon?
And you simply must take the time to read both of the articles linked below. Perhaps you're new here and searching for answers after this latest, contrived "event". DO NOT BELIEVE THE MEDIA SPIN. If you truly want answers, they are contained within these two excellent, forensic analyses. Please read and study them both.
The title of the Chris Martenson post sort of follows along a theme I mentioned back on Monday. Consider this. It's not a perfect analogy but it's close:
Much of the outrage of The Financial Crisis of 2008 stemmed from the money lust of the bankers. They created mountains of worthless securities and took on what became systemic risk. And, in doing so, they paid themselves exorbitant amounts of money. When it all came crashing down, they weren't held accountable. Not even financially accountable. The TBTF losses were transferred onto the backs of the citizenry through TARP and other such chicanery. In the end, the banks took on the risks but, when it all inevitably failed, the public took the losses.
Fast forward to this instant. The banks have been managing and manipulating the price of precious metals for decades through fractional reserve bullion banking. This entire system seems to be on the verge of collapse as physical demand is applying incredible pressure to a system that is built upon 100:1 leverage. For example, a major bullion bank, ABN Amro, has recently defaulted, opting to force cash settlement upon depositors rather than supply physical gold. So now the banks, which have been short and naked short paper metal for decades, have once again assumed massive, system-threatening risk...and what are they doing?? They are once again transferring that risk to "private sector". How you ask? Look at the CoT structure. In silver, where we all expect the initial disconnect to occur, the banks are now likely net long while the speculators (private hedge funds, managed money, etc) are now net short. In making this change, which side now has the ultimate risk when price explodes? The banks? Nope. They're long and ready to profit. Once again, the banks win and the public (albeit the wealthy hedge fund and managed money-investing public) loses.
As we wrap this post, let's go back and focus on the title for a moment. Today is Wednesday. Tomorrow is Thursday. At this point, all I ask is that you check this site a few times tomorrow and that you clear your calendar for tomorrow evening. It's going to be a memorable day. To whet your appetite, watch this. It's only about 90 seconds long. http://www.cbc.ca/documentaries/ Buried in the archives here at TFMR, you'll find this post: http://www.tfmetalsreport.com/blog/4084/summer-heats I leave you today with this follow-up: The "he" who has "high hopes" doesn't refer to me and it doesn't refer to Andy, either.
Have a great day!