To help keep you awake, I was able to find a few things for you to look at.
If looking for an insomnia cure, you're not going to find it in these charts. The only one worth noting is the crude chart where dips to $95 are being bought and the situation in Syria is looking increasingly tenuous.
Just a few minutes ago, ZH linked an article that discusses "the gold standard debate" in some very nice detail. You should take the time to read it: http://www.acting-man.com/?p=19285
I was/am perplexed by the latest open interest data. I summarized my confusion with this comment from the previous thread, copied below for your convenience:
Submitted by Turd Ferguson on August 29, 2012 - 1:30pm.
Totally F'd up OI
Seriously. Makes absolutely no sense.
Yesterday, gold fell $6. Total gold OI was UP 10000 contracts with 6000 being added to the Oct12. The Oct12 is a very light delivery month and it expires in four weeks. Regardless, Oct12 OI rose from 28,215 to 34,503. I've been tracking the Oct12 OI since 8/1 and it has never been over 30,000 and yesterday it surges to 34,503?!? Additionally, total gold OI has now risen by over 41,000 contracts (10%+) in just the past seven sessions and is now at its highest level since 7/19.
For the CoT week, the price of gold rose by $27 and the total gold OI rose by 28,000 contracts.
And get this for silver: Total silver OI fell by 5,300 as most exiting the Sep12 did not immediately roll to the Dec12. OK, fine. Whatever. But while gold OI is surging, silver is falling. In fact, yesterday's OI is the lowest it has been since the end of July and, over the same seven sessions where gold OI has risen by 41,000 contracts, silver OI has fallen 4,000.
For the CoT week, the price of silver rose by $1.45 and the total silver OI fell by 6,000 contracts.
And our pal, The Golden Jackass, has just released his latest public commentary. Below is a link to the full text and a few choice excerpts. Jim and I hope to record another podcast soon so I thought you might like to get caught up with all the latest jackassedness.
The insider conversation, often called chatter when it becomes deafening in tone, is that Morgan Stanley faces imminent failure and ruin. Almost two weeks ago, the Jackass provided a tip to Bill Murphy of GATA to post on his popular LeMetropole Cafe that Morgan Stanley fund managers and high ranking employees were preparing for the firm's implosion. A subscriber to the Hat Trick Letter has a good friend whose father works as a fund manager and provided the story. It was not detailed, and bore no follow-up after my request. The older employees are selling all of their stock, some legacy stock from one or two decades ago. Many workers are making contingency plans for their next positions in another firm. When Lehman Brothers was killed, thousands of employees had to find new jobs, some without success. In the last week, the shock waves are being heard from internal Wall Street sources in an unequivocal manner. The implosion is in progress, like the collapse of several platforms and structural cables. The inside is caving in, and the ranking members recognize it, even talk about it openly. Much discussion swirls about a transition to antiquated software that is greatly disturbing the trading desks, causing tremendous problems at precisely the wrong time. A redux of the Knight disaster could be in progress. The part that many analysts might miss is that Morgan Stanley has perhaps over 300 thousand private stock brokerage accounts, with over 17,500 brokers. In the past two decades, MS merged with Dean Witter and Smith Barney to become the premier stock house with the most private accounts of any US-based stock brokerage firm. The Morgan Stanley failure might feature the first theft of private stock accounts. The critical jump might occur in account thefts from futures brokerage to stock brokerage, which began in November 2011 with MFGlobal, then appeared in July with Peregrine Financial Group (PFG-Best). All private accounts from MFG and PFG have been pilfered, with a blessing of the theft by the courts, seen in the Sentinel Mgmt Group ruling. The federal Appellate court's August ruling sets precedent for future private segregated account thefts, which were once considered sacred and untouchable. No more in the United States, not in the unfolding of criminality that stretches from USGovt offices to top corporate offices, with blessings sprinkled by the courts. The jump would be a major extension of the Fascist Business Model that nobody talks about. The major financial firms can rely upon this appellate court ruling as precedent, so as to protect their legal right to re-hypothecate client funds in their high risk leveraged positions and loans. It sure would be nice to use my neighbor's house and car to firm up my casino weekends. Stay tuned to the ongoing Morgan Stanley implosion, which could force the vanishing act of 50 to 100 thousand private stock accounts. The firm is the largest stock brokerage firm in the land. The dreadful impact will be nasty and might awaken the US masses. MFGlobal and PFG-Best surely did not.
A strongly held Jackass belief goes contrary to many simplistic viewpoints by some smart people within the gold camp. My source has taught me well, but my comprehension is surely lacking in spots. Let it be known that many smart people do not comprehend this phenomenon. A few key colleagues have stated that the big Western banks could be fixed overnight by grand cash dispensation on a grand scale from the Printing Pre$$ by the USFed and Euro Central Bank. Not so, emphatically not so! The big broken banks of the US, London, and Europe cannot be fixed by printed money. They have vast and complex broken paper asset structural problems that cannot be repaired. It is like a poorly designed car with badly calibrated cylinder strokes, misaligned transmission drive shaft, an inadequate cooling system, and poorly designed torsion bars going into the shop. The best mechanics could not repair it, as they would suggest scrapping the entire mess. Such are the big banks. They possess wrong sided positions that have started a chain reaction of disasters. Their positions constantly trigger margin calls. Cash cannot fix their predicaments. Their margin credit extension is abnormal, outside the usual channels. They are stuck, unable to comply with arranged contracts from years ago under different rules. Their lattice work is broken and not repairable, not with cash.
The Eastern Coalition is busily applying the screws, confronting the deeply decayed margin inadequacy, and forcing relinquishment of gold bullion. The loss of gold loudly signifies that gold is money, and cash is not. The big banks have broken pieces that invite opponent attacks, like the JPMorgan position with sovereign bonds and their complex USTBond structure defending the artificial 0% rate by the Interest Rate Swaps. The big banks also have major unresolvable problems with allocated gold taken, that the owners want back, including extremely powerful people.
Put the two extreme extraordinary problems together and one can conclude that gold from Allocated Accounts was improperly used as collateral on leveraged trades gone bad!! They face margin calls that are satisfied only by relinquishment of gold bullion. The smoking gun will slowly come into view to launch a new banker scandal. The scandal over Allocated Gold accounts will eclipse the MFGlobal case, and lead to the Gold price rising over $5000 per ounce. Over 40 thousand metric tons of gold have been improperly used, much in this manner, laced throughout the banking structures. No hyperbole here.
Printed money cannot and will not fix any of such problems. The big banks are ruined and realize finally they are lined up for a slaughterhouse. Their only remaining option is to cut deals with the new masters and their sheriff. In time they will not be able to locate sufficient volumes of gold bullion to make the margin calls go away. Since February 29th, they have forfeited over 6000 metric tons of gold. Eventually they will run out of gold from Swiss castles and Roman catacombs. Then the game is over and a new dangerous chapter begins.
Gold & Silver are awakening from a deep sleep after a year-long price consolidation. While the physical story leans toward growing demand and declining supply, all bullish for the precious metals prices, the paper story continues to reek of strongarms, naked shorting, propaganda, and other devious devices. Prepare for a grand divergence between the physical and paper Gold price, as described and warned in this newsletter for many months. Rumblings continue about JPMorgan being in far more trouble than simply CFTC position limits. They struggle under the gradual breakdown of their derivative machinery that extends far beyond the USTreasury Bond complex, to the currencies and gold market. Renewed hope from August has come for a resurgent price as seasonal factors join with other conditions whereby the bank cartel has weaker hands. Recall the gold cartel has been forced to relinquish over 6000 metric tons in the last six months. The real battleground is with the Gold price in Euro terms, which is pushing for a breakout. That makes sense, since the obvious breakdown is of the European sovereign bonds, the Euro currency, the European big banks, and the Euro Central Bank monetary policy. Notice how the Crude Oil price reveals significant hedging against the USDollar, stubbornly near the $100 per barrel mark despite a fierce global recession. The high cost structure will be maintained, with little relief from relaxation. Recovery will remain an illusion. The Eastern Coalition has not gone away. They still pursue Gold. Perhaps their agents in acquisition are on European holiday. Soon it is back to the desks at work. Expect a price move toward $1800 very soon. Expect a Silver price move also, as it more clearly has broken out from the year-long consolidation, back over $30/oz. Moves in the two metals could come fast and furious. The Eastern world has consistently been big buyers, but now the Western world is seeking safe haven from the ruin in banks and bonds.
Have a great evening and overnight.
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