German Gold Hijinx

387
Wed, Jan 16, 2013 - 11:54am

I guess it all depends on how you look at it. Either this is all on the up-and-up or it isn't. Either this is a purely political show or it isn't. Either the gold is really there to be repatriated or it isn't. It's up to you to decide.

Just three months ago, The Bundesbank labeled as "lunacy" the idea that German gold needed to be brought home. They announce today that they're doing it anyway, but in sizes nowhere near what had been speculated. Is this just a political trick to mollify the German hoi polloi? Probably. It certainly doesn't upset the status quo or shake the global banking system in the manner we'd all hoped.

However, you could also choose to look at it this way:

  • In preparation for The Great Reset, the Germans do desire to repatriate as much gold as possible but they also don't wish to bring about The Reset any quicker than necessary.
  • So, they bring home "their French gold" but only do so at the rate of 50 tonnnes/year. Why? If it's just sitting in a vault and collecting dust, why not ship it all home over the next few weeks? What's the big deal?
  • And why leave "their English gold" untouched? Is it because all gold stored at the BoE can be leased, hypothecated and rehypothecated many times over, thereby making reclaiming it impossible?
  • And why bring back just 300 tonnes of "their American gold", again over the next 8 years? It shouldn't be that big of a deal to pull up a few pallets of "barbarous relic" from below the streets of lower Manhattan, drive it over to JFK and load it onto an airplane bound for Frankfurt. Should it?

Hmmmm. Maybe, just maybe, their French gold is long gone and the Frenchy-French need some time to come up with new supply to pay them back? ( https://www.reuters.com/article/2009/12/22/ozabs-mali-gold-idAFJOE5BL01520091222) Maybe the English gold has all been shipped to China and other points East, where it has been resmelted into kilo bars with official Chinese insignia? ( https://www.tfmetalsreport.com/blog/3924/gonefor-good) And maybe, just maybe, the American gold is nothing but paper certificates and IOUs, no more valuable than claims on the GLD? ( https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/25_James_Turk_-_The_Entire_German_Gold_Hoard_Is_Gone.html)

Ahhhhhh....what do I know? I'm just a Turd. A dope with a MacBook. I'm sure it's all just fine. Move along. Nothing to see here. All is well. Go back to sleep.

Anyway, it has been a few days so we need to update the charts. Let's start with gold. Take a look at these two, daily charts. You can clearly see the price double bottom. This also coincides with an open interest bottom in late December. In the big picture, me likes what me sees.

Now check out this 8-hour chart. Besides all of the horizontal and diagonal resistance lines I've drawn, gold will likley run into some tough sledding near the 50 and 100-day MAs. The fifty for the Feb13 contract is currently near $1697 and the 100 is near $1718. Taking it all into consideration, the "all clear" for a rally can't truly be sounded until gold gets up and through about $1710-1715, maybe in a week or two. Until then, I just plan to keep stacking physical. I'm not going to buy any more options just yet.

As you might expect, silver has a somewhat similar picture. It came down in late December and then double-bottomed just below $30 about two weeks ago. Since then, it has seen a steady progression higher. Now it just needs to follow through. It is finding resistance near the highs of 1/2/13 (31.50) and it needs to break that level to draw in more buyers. Once through there, expect slowdowns near the 50-day, currently at $32.01, and the 100-day near $32.60.

That's all for today. I need to go take a little boat ride with all my guns and ammunition. It'll probably take most of the day. More tomorrow...

TF

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maravich44Indenture
Jan 17, 2013 - 11:09pm

Indenture....

I too, innocently and foolishly bought physical silver; Euro paper sounds like the better path. How much will it go up? How Soon? Why will it go up? Just trying to learn and invest my money wisely. Thanks. https://www.youtube.com/watch?v=Bl5dZxA-rZY

EnglishTurdFan
Jan 17, 2013 - 4:55pm

Germans to bring 374 tonnes of gold home over 7 years?

We are informed by Debbie Carlson on Kitco that the Germans are going to bring some gold home.

https://www.kitco.com/reports/KitcoNews20130116DeC_2.html

In tonnage terms, the Bundesbank will transfer 374 metric tons from France and 300 tons from New York over the course of seven years.

That's 96 tonnes per year. Tongue-in-chhek, it means that the cartel have probably got to buy 96 tonnes a year out of the market to fulfil this order over the next 7 years!

thurd aye
Jan 17, 2013 - 2:22pm

Green Lantern....post of the

Green Lantern....post of the thread. Thanks.

boatman
Jan 17, 2013 - 12:33pm

orange is completely correct

and its a tossup--whats worse.......soft drinks or potato chips ESPECIALLY low fat or fat free.

kettle fried in a high smoke temp oil like peanut oil is a little better............and a high smoke temp, saturated, [ but non-hydrogenated] oil like coconut or palm is the best.

frying in mono and polyunsaturasted oils turns them into hydrogenated [transfats--the WORST] as they begin to approach their smoke temps.

low fat anything-in-a-bottle is worse than regular because usually it means hydrogenated fat.

Olestra and anal leakage boy that sounds just great..

Jan 17, 2013 - 12:27pm

I'd never noticed that before

... that banks often use "Trust" in their name, Bally.

somehow it fits with giving out suckers in their lobbies--preferably the Dum-Dum brand.

Some things are just too coincidental to not be true. Aristotle had something to say about that: "

if, therefore, a thing that is believed is improbable and even incredible, it must be true, since it is certainly not believed because it is at all probable or credible."
Indenture
Jan 17, 2013 - 12:21pm

Does anyne wonder why Germany

Does anyne wonder why Germany asked for it's gold back instead of just saying, "It's ok US. Just sell it, wire us the money, and we will buy the physical here in Europe. And thanks for saving us shipping costs!"

Think about it for a second. Why have it shipped? Why not just say wire Germany the dollar equivalent?

koan
Jan 17, 2013 - 11:55am

I second Manalishi's question

An extraordinary amount of SLV gets added in a single day (similar in size to the other extraordinary amount that got taken out 3 days after the massacre) - what to make of it?

Orange
Jan 17, 2013 - 11:54am

Banned Ingredients that Are Still Legal in the U.S.

"including oily anal leakage" Now you know why Turdites. Stop eating fat free potato chips. Thank you FDA for doing all your hard work at keeping us unhealthy. Have a look at the article for others.

Ingredient: Olestra (aka Olean) 
Found In: Fat-free potato chips Why the U.S. Allows It: Procter & Gamble Co. took a quarter century and spent a half a billion dollars to create "light" chips that are supposedly better for you, Calton says. They may need another half a billion bucks to figure out how to deal with the embarrassing bathroom side effects (including oily anal leakage) that comes with consuming these products.

https://shine.yahoo.com/healthy-living/banned-ingredients-still-legal-u-...

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2x2
Jan 17, 2013 - 11:52am

last two days

have had weakness across the GLOBEX session. What will today bring?

The drop was a surprise, the recovery was a surprise, the second wind just now is a surprise.... what's going to lead into the hour off?

achmachat
Jan 17, 2013 - 11:49am

weird...

I could have sworn that passing 31,80 USD for silver would trigger an avalanche of buy-stops...

edit: there we go. I wasn't that wrong.

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