FOMC Wednesday

Today's FOMC Fedlines are a non-event. So now we turn to tomorrow.

Thursday brings some news from the ECB. Won't that be fun? Perhaps a reason for the paper jockeys to jam prices lower again? More likely, prices rebound tomorrow as today's shorts are squeezed back out. Then we do this same dance over again on Friday. We'll see.

For now, here's the FOMC statement from the ZH scribd page:

April Redline

 

Moving on, my thoughts on the day were summarized in this comment to the previous thread. Rather than re-type, how about a simple C&P:

 

"All you need to know is this: Nearly every important Eastern and Asian buyers market was closed today for May Day. Just like we've seen in the past, absent physical purchasers, the Spec HFTs and Cartel monkeys play freely to kill paper price. Today is no different.

The only real stories today are these:

http://www.zerohedge.com/news/2013-05-01/arizona-becomes-2nd-state-make-gold-silver-legal-tender

http://www.zerohedge.com/news/2013-05-01/crude-inventories-surge-record-high-energy-demand-collapses

http://www.zerohedge.com/news/2013-05-01/manufacturing-ism-drops-lowest-december-employment-drop-biggest-2008

http://www.ft.com/cms/s/0/f7d2e844-b253-11e2-8540-00144feabdc0.html#axzz2S3ls6nkg

http://www.bloomberg.com/news/2013-05-01/crude-falls-for-second-day-on-signs-of-economic-slowdown.html

http://www.usnews.com/news/articles/2013/05/01/weak-adp-estimate-raises-concerns-about-jobs-report

My enthusiasm for typing a new thread is low because I simply don't care what these baboons are doing to paper price. I don't. Gold (and silver) is being sold off because the global economic weakness is prompting paper traders to sell all commodities. And gold is a commodity? Not to me!! And screw the FOMC minutes. Nothing but worthless SPIN and MOPE. We all know by now that QE can't and won't end. EVER! Ending QE would collapse everything. Not going to happen.

Paper trading is completely disconnected from economic reality. Today's paper action deserves nothing but a cursory glance and shoulder shrug."

The only other interesting item at this time in the open interest and CoT survey. For the Wednesday to Tuesday reporting week, gold surged over $62 in price and its OI climbed by 6,000 contracts. Silver, however, was dealing with May contract expiration so, while it also surged forward by $1.36, its OI fell by about 15,500!  This sets up another very interesting CoT report this week. Who, in silver, was buying/covering and closing May positions? Was it the Specs? Was it the Comms? How much by category? A very interesting CoT this week, indeed.

But the CoT is still 49 hours away. Before then, we're going to have all kinds of price volatility, likely enough to make us not even want to see the CoT as we'll all be ready for the weekend. Hang in there, keep the faith and let's see what tomorrow brings.

TF

140 Comments

dgstage's picture

Metals

They did not hate the news. Like you said earlier today more spin and mope.

foscotanner's picture

top 5

:-)

Actually my first ever second.

I have had one first, two thirds and now a second.

When it comes to predicting price - i wish i could come anywhere other than bottom :-)

JY896's picture

Livermore's advice and comments...

...about the difficulties of sitting tight while being right ring strangely true right now.

There is a lot of hand-wringing, expert opinion, gold vs. silver bashing, conspiracy-decrying going on at the moment. There is small likelihood that anyone will ever find out the COMPLETE, WHOLE truth about every detail of the mechanics of securitized PM markets -- whether by voluntary disclosure, whistleblowing, court proceedings or investigative reporting.

But I am curious, if one understands/believes that the fiat monetary regime of the past decades, combined with the ever more efficient intertwining of large business interests and government (taxation, redistribution, selective subsidization, selective enforcement, etc.) has been:

- a tremendously successful wealth tranfer conduit

- whose throughput and efficiency of operation (in terms of wealth moved/concentrated) has increased sharply in the last ca. 10-15 years

WHY does anyone think that financial vehicles operating within the framework such as GLD or SLV are fulfilling any other purpose? I am not saying anything about the actual contents or 'ownership' status of any physical metal in or not in the custodial vaults, nor about the redemption process -- my comment is merely intended to apply to the ultimate purpose of the construct. If you can make money holding/trading it, good for you.

But it seems to me that the gold and silver thread used up in the spinning/weaving/tailoring process went to some of these for 'special participants':

While everyone else involved will end up looking like this:

And in a broader sense, this applies not only to those vehicles -- but to the adherents of paper assets in general. The 'value' rests on and derives from the trust placed in the terms of the contract, the enforceability of the contract, and the protection afforded to both parties. I see all of these being (or have been) eroded.

Swineflogger's picture

Turd! I mean Third!!!

crying

Rat Puke 4th

plecotus's picture

third

back up we go?

The Watchman's picture

It Will Continue

printing.jpg

StevenBHorse's picture

Most interesting comment from today was this nugget

"The committee is prepared to increase or reduce the pace of its purchases."

Very interesting indeed.  Since prior minutes had been perceived by the market as hawkish, this is without a doubt a very  dovish statement.   

Also couple that line with the video of former Fed guy Kevin Warsh.

http://www.youtube.com/watch?feature=player_embedded&v=KXLRdhM5s1c#!

Start at 41:00.

There is no exit, no stopping.  It's the nature of a exponentially growing system.  They will only stopped when the market revolts.  Don't be so silly to believe that the TPTB can hit every bid in a panic.   

Silver_investor's picture

A Note of Caution to Our Silver Camp

For those who haven't seen it, this is a good article.

http://sgtreport.com/2013/05/a-note-of-caution-to-our-silver-camp/

Double Bogey's picture

LCS report

I walk into the store

Me:  Got any silver?

LCS: Sure, we're running a special today, Maples for $6 UNDER spot!

Me:  You're joking!

LCS:  You started it!

Silver Alert's picture

top 9

Sinclair predicts we (gold) go down from here.

Actually, it was a prediction by CIGA Bo Polny that gold would turn down on 5/2 or 3.  He even stipulated that the 'price may vary but the dates are set.'  Sinclair endorsed this person and advised everyone to listen to him.  This to me is tantamount to being no different than Sinclair making the prediction himself.

ReachWest's picture

Monarchs of Money

The following is a CBC (Canadian) mini-documentary, titled "The Monarchs of Money", that ran a couple of days ago on the CBC nightly news. It focuses on Central Banks and QE. It's worth watching - although there several tidbits of what I would consider soft-shoed mis-information.  
 
One quote - from Mark Grant - "there is no good ending here, just varying degrees of bad endings."
 
It does seem that the Central Banks are starting to lose the PR battle.
 
Worth watching - here is the video on YouTube. [Apologies if this has previously been posted - I have not noticed it]
 
erewenguy's picture

top dozen

Ah well. That's what I get for reading.

Didn't buy today, but looks like I missed a good opportunity. My orders from Provident are slllllloooooowwwwww.

SRSrocco's picture

THEM COSTS JUST KEEP ON RISING....

YESTERDAY, NEWMONT.... TODAY, YAMANA

Well, it looks like Yamana came out with their Q1 2013 report.... and it twasn't good.

YAMANA NET INCOME DOWN 40% COMPARED TO LAST YEAR

One good thing, Yamana did increase gold production.  Let's take a look at the stats... shall we:

2012 Q1 Gold Production = 234,432 oz

2013 Q1 Gold Production = 248,239 oz

Now for the bad news...

2012 Q1 Revenues = $559.7 million

2012 Q1 Net Income = $170 million

--------

2012 Q1 Revenues = $543.8 million

2013 Q1 Revenues = $102 million (-40% yoy)

Rising Production Costs help destroy net income...

2012 Q1 Cost of Production = $191.8 million

2013 Q1 Cost of Production = $230.7 million (up 20% yoy)

-------

Anyhow... I am not bashing the gold Stocks... I think they are the real source of real money in the world.  However, this just goes to show that as costs rise, so should the price of gold (if demand is there.. which it is).

zman's picture

I thought Central Banks

I thought Central Banks bought US bonds or Gold, since when do they buy stocks, am I missing something?     What happens if stock markets tank, are central banks going to be stock traders now?   This could end very bad.

http://www.zerohedge.com/news/2013-05-01/bank-israel-double-down-stocks-will-invest-european-shares

AlexCojones's picture

When CNBC goes into the Vaults - Shouldn't We?

When the main scheme media goes into the Gold vaults - and they have been doing this MORE and more frequently - shouldn't we heed their example too?

Go. Into. The. Gold. Vault.

And buy gold!

My LCS had a few gold items, mostly foreign coins and fractionals. I asked how much for a tenth oz AGE and he answered $170. Apmex sell is $182 and buy is $162.

LCS hits right in the middle.

dropout's picture

Look Out! She's Gonna Blow!

The amount of debt held in the member margin accounts of the New York stock exchange, is now at the previous high set in early July of 2007!
Of course the Fed will not withdraw support (printing) because to do so would cause the mother of all margin calls, with attendant short covering and causing a massive crash.
Won't happen.
Q.E. TO INFINITY AND BEYOND. The fed is now damned if do and damned if they don't.

delacroix's picture

so cal coin shop

just bought 2 maples, still in the plastic and a libertad out of the generic bucket for $28 each. the owners daughter lets me flirt with her during the transaction, and thats priceless. my son got 2 libertads too. they had about 40 more coins and bars in the bucket. just doin my part to break the paper scam. several sellers in the store WTF?

billwilson's picture

tomorrow

Watch GG before the bell with earnings. Each time majors have missed on earnings we have gone much lower. Yesterday NEM, today AUY. If GG does all right we might get a nice pop, otherwise ...  With most of the miners now done reporting the opportunities for negative overnight news diminishes, making the next move possibly higher.

boatman's picture

FOMC wenesday

not showing up in 'new blog posts' here.

Orange's picture

"And gold is a commodity? Not to me!!"

It's okay Turd, we are legal.

http://www.cbsnews.com/8301-250_162-57582317/arizona-bill-recognizes-gold-silver-as-legal-currency/

By 

JAKE MILLER /

CBS NEWS/ May 1, 2013, 11:03 AM

Arizona bill recognizes gold, silver as legal currency

boatman's picture

i guess the dif is............

ben said 'reduce or increase purchases'

before this all they ever said was 'exiting QE in the future'

but, yeah, its MOPE what they say.

StevenBHorse's picture

Margin Debt in all its glory

Prize Fighter's picture

Exit plan is lots of

Exit plan is lots of screaming.

SilverSurfers's picture

Confused

Is this a new thread or is this an old tread? DPH? MrFix? Admin? Anyone? This tread FMOC Wednesday has been superceeded, and one is interested who does not want to break up the hard-on flow and intrude, but some work on definitions and precision. Is this a New Tread, or an Old Tread, or can Turd have Concurrent New Treads, such as this one and the one in gold? Just Asking, and thank you kindly in advance for your welcomed assistance. Answers to this stupefying mystery is best served using @SilverSurfers for auto-search self-reliance. Thank You Sincerely, SS

Southern Cross's picture

How Much Is Enough?

 
By JIMALE (Reporter)
Contributor profile | More stories

Spy, or Pay Up: FBI-Backed Bill Would Fine US Firms for Refusing Wiretaps

Wednesday, May 1, 2013 6:31
 
"The fined company would be given 90 days to comply with wiretap orders. If the organization is unable or unwilling to turn over the communications requested by the wiretap, the penalty sum would double every day."
 
Southern Cross's picture

Prepare

50 Percent Of Republicans Think An Armed Revolution Is Needed

Wednesday, May 1, 2013 13:59
 
"half (44 percent) of all self-described Republican voters say they believe “an armed revolution might be necessary to protect our liberties.” Just as bad, more Republicans believe an armed revolution might be necessary than believe one isn’t necessary."
unthought known's picture

Gainesville Coin only has 969 monster boxes left

Better hurry up and buy! That is only 485k ounces not including other silver eagles... man, physical is really tight!! total bullshit

cpnscarlet's picture

Did my bit...for the last time

Bought 20 ASE from Gainesville.

My last salute to the troops.

Silver_investor's picture

Shortages?

I really don't know what to believe. I got an email yesterday from APMEX stating that they have plenty of gold and silver inventory ready to ship. 

BagOfGold's picture

Turd won't be eating his hat...

'cause...Jamie Dimon ate it!...However...If Dimon decides to eat Turd's shirt...I hope he breaks his fangs!!!...

Jamie Dimon...
 
 
Bag Of Gold
 
 
 

 

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