Late Morning Post
Behind the 8-ball a bit this morning in terms of time. Therefore, just this quick post.
We had a bit of miscommunication today. I thought I was scheduled to be on with John B. Wells next Tuesday. Instead, we recorded today. And now it's quite late and after noon in NY.
Craziness again today that has subsided a bit as I type. Crude saw a low earlier of $36.64 but it's now about a dollar off of those lows. Stocks opened down and then rallied. Now the Dow is back down 160 points so we'll see what the afternoon brings.
Glencore and DoucheBank are making new lows. GLEN got all the way down to 76.32 before closing at 80, which was still down 5.36 on the day. DB has made new multi-year lows at 24.45, down over 3% today.
All of this but gold is hanging in there. The same guy who got me the updated GOFO rates last week says that one-week GOFO just made a new low earlier today at -0.55%. If that's the case, that certainly helps explain why gold has rebounded and held in there today, down just $2 at $1073.
This is obviously pretty big news in the mining sector: http://money.cnn.com/2015/12/08/news/companies/anglo-american-85000-jobs/
More on the extreme CoT positioning here: http://www.zerohedge.com/news/2015-12-08/good-news-gold-speculators-havent-been-gloomy-13-years
And this is just getting more dangerous by the day: http://www.zerohedge.com/news/2015-12-08/turkey-refuses-withdraw-troops-iraq-threatens-slap-sanctions-russia
Lastly, I'd like to draw you attention to something which was sent to me earlier. I have a long history with this particular blogger and here's what I know. He is a former DoucheBank gold trader and he's always been desperate to prop up the current paper derivative pricing structure and, by extension, his former employer (which teeters in insolvency, as noted above). To that end, he repeatedly blasts many of us in the gold blogosphere as know-nothing "charlatans" and "con men". However, it is HE who is disingenuous and HE is the one who uses half-truths and falsehoods in his assertions...and this latest is full of examples. Here's the link:
I could address this garbage piece by piece but it's not worth my time to do so. The only reason I'm posting it is so that no one here finds it and then posts it as if I'm trying to hide from his attack. Let me just point this out, though.
From his post, he states that the only reason the Comex gold stockpile is down is due to falling demand for Comex paper. This is complete BS and we addressed this last week when we discussed the imminent departure of that lady at the CME. Since 2014, the "total coverage" of physical to paper at Comex has fallen from 22% t0 16%. We noted this so we're clearly not trying to deceive anyone here through our lack of sophistication. But be sure to note the two CME Gold Stocks reports posted last week and reposted below today.
Back on June 9, 2014, total Comex open interest was 381,422. On the Gold Stocks report of that day, note that total registered gold was 8,265,659 of which 933,633 was classified as registered:
However, as of last Friday, total Comex open interest was 389,113...about the same. But, as you can see on the Gold Stocks report below, total gold had fallen to 6,448,759 (-22%) and total registered is just 121,463 (-87%).
And, as we've repeatedly stated, this whole "leverage ratio" issue could easily be fixed with a simple journal entry movement of a few hundred thousand ounces. That this hasn't happened and the registered vault has remained at these record lows for the past 90 days is another point of interest.
Never have we claimed that this CME-provided data somehow proves that The Comex is about to fail or default. We've simply added this information to the stockpile of supposedly anecdotal data points of a growing physical gold tightness around the globe. (http://www.tfmetalsreport.com/blog/7287/rats-and-sinking-ship) But that doesn't matter to shill hucksters like KD. Nope. Instead, just spew some half-truths and while denigrating the motives of others. That's been his modus operandi for years and, as you can see, he's still at it today.
But that's just my opinion. Maybe, as KD contends, this current system is completely fine, totally fair and honest. Though Comex delivers no metal, it's a perfect proxy for real, actual gold and all of the Banks that operate there are simply acting as benevolent, altruistic market makers. We continue to link stuff like this so that you can decide for yourself.
More later with a full podcast summary and review. Have a great day!