It's late so just a quick summary today.
Anyone still wondering why we call it the BLSBS need look no further than today's report. This story from ZH says it all: http://www.zerohedge.com/news/2013-07-05/obamacare-strikes-part-time-jobs-surge-all-time-high-full-time-jobs-plunge-240000
I could type up a full summary but there's no time. Besides, Denver Dave tells you all you need to know here: http://truthingold.blogspot.com/2013/07/the-governments-numbers-are-complete.html
And of course, just so you understand the narrative and how this is all supposed to fit together, CNBS chimes in to inform you that the BLSBS data is gold's "nightmare": http://www.cnbc.com/id/100866234
Ummmm. No, not really. A nightmare for paper gold traders who are long, perhaps. Certainly not a nightmare for me.
Speaking of "narrative", while I've been on vacation I've had one thought that keeps creeping back into my mind. It's this notion that gold is going down because sometime soon The Fed is going to begin to "taper" their $85B/month in quantitative easing. OK, fine. But how does that explain the fact that gold has been going down since October? QE∞ was announced last September and fully realized in December yet gold broke from $1800 in early October and has rarely seen an uptick since.
Perhaps the narrative doesn't quite work. Perhaps it's really all just a cover story. I fully, 100% believe that the events of the past nine months have been a contrived, managed and designed scheme to decrease and eliminate The Bullion Banks' liability in paper metal. Last September, they were net short 737 metric tonnes of paper gold. As of ten days ago, that number was down to 109 metric tonnes. As of this moment, let's safely assume that it is well under 100 which means that the short paper liability has been reduced by 90% in the days since QE∞ began. This is not by accident and it is not some sort of fortunate coincidence for the banks. This type of counter-intuitive move, for which a cover story has been created and maintained, is a clear and coordinated, manipulative event. For the sake of simplicity, it looks something like this:
- Begin paper price smash that eventually feeds on its own momentum, drawing in Large Spec selling to perpetuate it. The Banks are buying and covering into this Spec selling. However, the falling price increases physical demand.
- By design, though, the falling price changes "investor" psyche and redemptions begin at GLD.
- Redemptions at GLD allow the APs (which are the Bullion Banks) to withdraw gold and utilize it to settle physical purchases brought about by the lower prices.
Finally, today, this great piece from JS Kim. Please take time to read it over the weekend: http://www.zerohedge.com/node/476057
As I close, I see that gold went out down about $38 and silver is down nearly $1. Crude has spiked toward $103 and bonds are getting smoked with the 10-year note now yielding 2.70%. Nothing is "fixed" and nothing is "fine". Hold your metal closely and keep stacking.
p.s. Two things:
- There is no CoT report report today. Because of the holiday yesterday, the CoT will be released on Monday... a full six days after the survey was taken!
- Lately there have been an abundance of full articles being c&pd into the comments section. Please refrain from doing this. There are often copyright restrictions on internet material and using a full c&p can put me into some legal hot water. When posting, please copy just one or two paragraphs and then add a link to the rest of the article. Thanks!