Today is Wednesday

694
Wed, Apr 17, 2013 - 11:22am

Which means that tomorrow is Thursday. Well, that's exciting!

So here we are. The metals aren't sharply rebounding but at least they're not still falling. Intelligent people around the globe are rushing to gobble up as much gold at "sale prices" as possible. Here's a good summary link from ZH: https://www.zerohedge.com/news/2013-04-17/gold-buying-frenzy-continues-china-japan-and-australia-scramble-physical And of course, anecdotal stories about retail shortages persist here in the U.S. Though certainly some dealers are simply refusing to sell at the current price (no doubt at a loss), many report to simply being "sold out".

The U.S. Mint continues to sporadically report its sales data. They haven't updated since last week, so the numbers on their site are suspect. https://www.usmint.gov/mint_programs/american_eagles/?action=sales&year=2013 Regardless, as you can see, Silver Eagle sales are trending quite well and look at the Gold ounces! For April month-to-date, 83,500 ounces have already been sold. Compare this to 62,000 for all of March and 80,500 for all of February. Additionally, April of 2012 saw just 20,000 total where April 2011 had 108,000. Clearly we can throw another big, anecdotal log on the fire.

Moving along, as you know ole Harvey keeps track of gold deliveries every day so check this out. Back on First Notice Day, the April gold contract had 6,601 contracts standing for delivery. Since FND, the amount standing for delivery has increased to 11,141. That's an increase of 4,540 contracts or 454,000 ounces! That's a lot. Recall that many of us tied the February takedown to the unusually high (14,000+) number of contracts standing for delivery that month. Is this current beatdown also related to Comex delivery? And one more thing...1,114,100 is 34.65 metric tonnes. OK, hold onto that number for a moment...

Last Thursday, I wrote the post on GLD in which I tried to give you some measure of the scale of the "inventory" reductions. When I typed that post, the GLD allegedly held in "inventory" 1,183.53 metric tonnes of gold. As of last night, the GLD is down to 1,145.92. That's a reduction of...wait for it...37.61 metric tonnes. (Oh, and we're supposed to think that gold sold off because Cyprus is being forced to sell 10 mts.) Now down exactly 204 metric tonnes YTD, the alleged GLD "inventory" has fallen 15.11% since 1/2/13.

But back to just the last 4 days. Another 37.61 metric tonnes is 1,209,189 troy ounces or another 16 pallets.

Here's another link for you. As you know, I got my "start" at ZH a long time ago. One of the guys hanging around back then went by the name "Gordon Gekko", as in the "Wall Street" character. Anyway, he was always a sharp dude and he now has his own blogspot site, too. On there yesterday, he posted a terrific piece echoing many of the same things we consistently advocate here. You should read this: https://www.gekkosblog.com/2013/04/buy-physical-gold-now-discount-of.html

As we look at the mainstream media, here are two items that are completely surprising, considering the sources. First, here's a link from The Telegraph. Can you believe that this actually made it past the editors and into print? https://blogs.telegraph.co.uk/finance/thomaspascoe/100024081/the-gold-price-crash-is-further-evidence-of-market-rigging/ And then last night, while I'm at the gym, The Idiot Cramer is on discussing gold. Since he discussed it using many of the same metrics we use here, maybe I should lighten up on him a bit. Perhaps he's a closet Turdite? Maybe both he and Santelli appreciate the finer qualities of canned bacon?

And you simply must take the time to read both of the articles linked below. Perhaps you're new here and searching for answers after this latest, contrived "event". DO NOT BELIEVE THE MEDIA SPIN. If you truly want answers, they are contained within these two excellent, forensic analyses. Please read and study them both.

https://news.sharpspixley.com/article/ross-norman-gold-crushed-by-400-tonnes-or-usd20-billion-of-selling-on-comex/159239/

https://www.peakprosperity.com/blog/81535/gold-slam-massive-wealth-transfer-our-pockets-banks

The title of the Chris Martenson post sort of follows along a theme I mentioned back on Monday. Consider this. It's not a perfect analogy but it's close:

Much of the outrage of The Financial Crisis of 2008 stemmed from the money lust of the bankers. They created mountains of worthless securities and took on what became systemic risk. And, in doing so, they paid themselves exorbitant amounts of money. When it all came crashing down, they weren't held accountable. Not even financially accountable. The TBTF losses were transferred onto the backs of the citizenry through TARP and other such chicanery. In the end, the banks took on the risks but, when it all inevitably failed, the public took the losses.

Fast forward to this instant. The banks have been managing and manipulating the price of precious metals for decades through fractional reserve bullion banking. This entire system seems to be on the verge of collapse as physical demand is applying incredible pressure to a system that is built upon 100:1 leverage. For example, a major bullion bank, ABN Amro, has recently defaulted, opting to force cash settlement upon depositors rather than supply physical gold. So now the banks, which have been short and naked short paper metal for decades, have once again assumed massive, system-threatening risk...and what are they doing?? They are once again transferring that risk to "private sector". How you ask? Look at the CoT structure. In silver, where we all expect the initial disconnect to occur, the banks are now likely net long while the speculators (private hedge funds, managed money, etc) are now net short. In making this change, which side now has the ultimate risk when price explodes? The banks? Nope. They're long and ready to profit. Once again, the banks win and the public (albeit the wealthy hedge fund and managed money-investing public) loses.

As we wrap this post, let's go back and focus on the title for a moment. Today is Wednesday. Tomorrow is Thursday. At this point, all I ask is that you check this site a few times tomorrow and that you clear your calendar for tomorrow evening. It's going to be a memorable day. To whet your appetite, watch this. It's only about 90 seconds long. https://www.cbc.ca/documentaries/ Buried in the archives here at TFMR, you'll find this post: https://www.tfmetalsreport.com/blog/4084/summer-heats I leave you today with this follow-up: The "he" who has "high hopes" doesn't refer to me and it doesn't refer to Andy, either.

Have a great day!

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  694 Comments

opticsguy
Apr 17, 2013 - 10:40pm
tmosley
Apr 17, 2013 - 10:41pm

Note that copper has been

Note that copper has been slammed as well of late. Since a great deal of silver production is a byproduct of copper mining, well, you get the picture.

ctob
Apr 17, 2013 - 10:42pm

inevitable can be a long time

Its inevitable that the Himalayas will be ground down to the size of the Appalachians. But its gonna take a while.

Karankawa
Apr 17, 2013 - 10:42pm

8 sigma chart by opticsguy

Major system change. This post by The Watchman Bankers at White House Meeting Thursday 4/11 Submitted by The Watchman on April 17, 2013 - 5:43pm. Hat Tip! 0 Full List of Bankers at White House Meeting Thursday Here is the list of bank executives who will be attending, according to a White House official: • Lloyd Blankfein, Chairman and CEO Goldman Sachs • Jacques Brand, CEO Deutsche Bank Americas • Michael Corbat, Chief Executive Officer Citigroup • Jamie Dimon, Chairman, CEO and President J.P. Morgan Chase • Sergio Ermotti, CEO UBS • James Gorman, Chairman and CEO Morgan Stanley • Gerald Hassell, Chairman and CEO Bank of New York Mellon Corpo ration • Jay Hooley, Chairman, President and CEO State Street Corpo ration • Abby Johnson, President, Fidelity Financial Services, Fidelity Investments • Steve Kandarian, Chairman of the Board, President and CEO Metlife • Brian Moynihan, President and CEO Bank of America Merrill Lynch • John Strangfeld, CEO, Prudential • John Stumpf, Chairman, President and CEO Wells Fargo • Jim Weddle, Managing Partner, Edward Jones • Bob Benmosche, President and CEO American International Group Something BIG caused this meeting-I don't think it is coincidental that Gold and Silver have been attacked since. And don't forget Boston. Ever Heard of The Strategy of Tension? https://www.youtube.com/watch?v=U2DeduiHeWU&feature=player_embedded

Strongsidejedi agauinvest
Apr 17, 2013 - 10:43pm

@agauinvest - Good point ... I got a question though

@agauinvest

"people need to be more careful about silver mining cost"

That is a great point.

In the case of Rio Tinto and Kennecott, the Silver was a by-product of the copper mining.

Rio Tinto reported that they get 100 metric tons a year of silver and 10 metric tons a year of gold from Kennecott.


I guess we're saying then that the global silver supply is a function of crude oil / energy costs and the need for other things like Copper.

Since we've lost 40% of the US Cu production, I can only assume that copper products will move up in price?

Mr. Fix
Apr 17, 2013 - 10:43pm

@ agauinvest

Your thesis of “silver as a byproduct", has held true for decades, but is no longer valid.

Due to a crashing global economy, the world now has a surplus of base metals above ground,

and massively decreasing demand.

Silver on the other hand, is massively increasing in demand,

and at some point, will need to be priced as a primary metal, and not a byproduct.

That by itself would make the cost much, much higher.

I would say we have already arrived at that point in time, it just hasn't been reflected in the price yet.

The fact of the matter, is that it is now quite unprofitable to mine silver,

At least in the quantities the market is demanding.

opticsguy
Apr 17, 2013 - 10:44pm

Rob Gray

Dallas Airpark has a lot of older large houses around it, but the runway has fallen into disrepair. If there was a nice airpark in Plano, I would be living there.

ChicagoMark tmosley
Apr 17, 2013 - 10:45pm

tmosley

I've also given your scenario some thought. Drive the paper price to pennies and then settle with fiat. The problem I see is that the paper to physical price will break well before that and the COMEX would have to shut down before it ever got that low. However, that doesn't mean it can't get much lower. If that does happen, how can anyone claim it isn't manipulated?

I spoke to Monex today and the guy said they have tons of silver to sell. Not sure if that meant you can get delivery anytime soon.

ctob
Apr 17, 2013 - 10:50pm

If they had tons to sell they would be

So either they have tons they are not selling. or They will put in an order fors tons and they will be happy to give silver tomorrow for silver you pay for today.

SilverSurfers
Apr 17, 2013 - 10:52pm

@Prize Fighter

cnn money, ed at cal-num? think so, takes me back to the kugger days, and raw raw in 1979. Oh, he gain a few pounds. LOL!!!!!

wouldyoubelieve...
Apr 17, 2013 - 10:53pm

@agauinvest

yes, silver is a byproduct to other metal mining, especially copper, which is also getting slammed, copper mining is far more price sensitive, shut those mines for any period of time and a silver shortage follows soon after, so either the metals stabilize, or miners might jus go Galt.

tmosley
Apr 17, 2013 - 10:57pm

Monex will take the money for

Monex will take the money for tons, and give you nothing.

They are paper pushers, nothing more, nothing less.

John Galt
Apr 17, 2013 - 10:57pm

Breaking News

Fertilizer plant north of Waco Texas explodes...100 injured

https://www.cnn.com/2013/04/17/us/texas-explosion/index.html

pailin ag1969
Apr 17, 2013 - 10:58pm

SBSS/Duane

Anybody have the rest? Looks like the link is already fried :)

thanks,Pailin

القراع عصفور
Apr 17, 2013 - 10:59pm

yes ctob

you get it.

Urban Roman
Apr 17, 2013 - 10:59pm

opticsguy,  how about

opticsguy,

how about Addison, then?

dgstage
Apr 17, 2013 - 11:00pm

Strange

My doors and windows rattle earlier, never had that happen. I thought maybe earthquake, but a fertilizer plant blew up in Waco over a 100 miles away.

Mr. Fix
Apr 17, 2013 - 11:02pm

Busy night at ZH:

US Mint Sells Record 63,500 Ounces Of Gold In One Day

Submitted by Tyler Durden on 04/17/2013 - 21:23

According to today's data from the US Mint, a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.



Massive Fertilizer Plant Explosion Shakes Texas - Live Aerial Shots

Submitted by Tyler Durden on 04/17/2013 - 22:19

UPDATE: Hospital told to anticipate 100 people with injuries, Hospital CEO tells CNN

In the aftermath of the Boston horrors, a massive explosion has occurred at a fertlizer plant in Waco, Texas. This week is the 20th anniversary of the deadly seige in Waco. Russia Today reports that at least 10 other buildings are on fire, including the town middle school, and a large swath of the town was “leveled” in the explosion. The explosion occurred around 7:50pm local time. A fireball of nearly 100 feet high has been reported along with a massive power outage. The images and scale of this explosion are incredible and reports are coming in people still trapped. The explosion could be heard from 100 miles away in Dallas. The explosion followed the outbreak of a fire at the plant - and occurred as firefighters were working on the blaze.

Texas Sandman
Apr 17, 2013 - 11:04pm

They should just take the crimex price to zero.

Then you'll buy your silver bar for free with a $30/oz premium.

القراع عصفور
Apr 17, 2013 - 11:09pm

Galveston

explosion April 16 1947. thinks are getting weird alright. 66 years ago. ammonium nitrate fertilizer also.

https://www.essortment.com/texas-city-explosion-1947-32393.html

ag1969
Apr 17, 2013 - 11:10pm

Pailin

I can't get there anymore myself. He went on to say that he asked Gray for his Dies and his url (Silverbulletsilvershield.com) and Gray told him that he wasn't getting anything. He also called into question the Free Lakota Bank, who Mulligan Mint also makes rounds for. Duane said that it had nothing to do with the Lakota Nation and people should find out who actually owns that bank. Can't remember the rest but he is obviously pissed off.

twowolfgangs Pining 4 the Fjords
Apr 17, 2013 - 11:11pm

@Pining 4 the Fjords

Thank you for taking the time to explain that so clearly.

"We believe that sooner or later, the trading partners of the US will reject the "world reserve currency" status of the dollar"

I believe this too. I err on the 'later' side, rather than the 'sooner'

"But when we see trillion dollar deficits, unsterilized QE, markets that are heavily manipulated in the manner of Soviet central planners, and the whole unworkable system is underpinned by financial architecture that is based on banks with massive liabilities vs their paltry assets and quadrillion dollar derivatives bets... Well, lets just say that a situation that is fundamentally unsustainable cannot be sustained."

My suspicion is that I will always disagree with this community on one key point. A core belief you share, it seems, is that activist monetary and fiscal policy is a bad thing and we'll eventually end up with some catastrophic debt event. We should man up, take the pain of recession and unemployment and let things work themselves out - you may say.

My belief, is that activist monetary and fiscal policy is essential to managing the business cycle and that if the problems of unemployment and recession can be managed using these tools, then we should make use of them, rather than see the vicious boom bust cycles of the gold-standard years.

We find ourselves in unique times in terms of the extend to which these (sometimes rather blunt) tools have been used, and this worries me. But, I am, to use the terminology you employ here, pro-"central planning". You will say I have sympathy with Keynes. I will agree with this.

I hope our ideological differences are not too great for us to carry on sensible dialogue here. If that proves (continues?) to be the case, I shall say 'au revoir', wish you and yours the best. and sashay along to my next place of rest.

Karankawa
Apr 17, 2013 - 11:12pm

Sandman, I think you are correct.

I posted similar thoughts on this earlier here. Submitted by Karankawa on April 17, 2013 - 10:42pm. I think the banking system is under extreme stress and a plan was made to kill any opposition. They introduced the plan. We are going to see how it works out for them.

Zoltan
Apr 17, 2013 - 11:14pm

St. Luke 12 32:34

32 Fear not, little flock; for it is your Father's good pleasure to give you the kingdom.

33 Sell what ye have, and give alms; provide yourselves bags which wax not old, a treasure in the heavens that faileth not, where no thief approacheth, neither moth corrupteth.

34 For where your treasure is, there your heart be also.

From a WAFO (weddings and funerals only) church goer.

Z

pforth
Apr 17, 2013 - 11:17pm

Sell my remaining miners...

Although I'm mostly physical, I've got some remaining assets in the miners. SLW and GDXJ in particular, both of which were hit hard today. I'm leaning towards selling them tomorrow. I don't see the paper price recovering again. The government has drawn a line in the sand. The paper price won't be allowed to go higher until the COMEX and/or LBMA defaults and we start using a new overseas exchange like HEH. But what does that leave for the miners? Most of them are locked into COMEX contracts. Will the breaking of the COMEX not break them too? If I was the bankers, I would want to drive them all into bankruptcy and then pickup their assets with new vulture funds for pennies on the dollar. Can anyone see a scenario left where the miners can recover?

Hagarth
Apr 17, 2013 - 11:17pm

@the Watchman - CEO Meeting 'bummer

THAT is literally freaking me out. Not the bankers in the room but the Insurers attending. What is a derivative contract but an insurance vehicle. That could not have been a good meeting.

القراع عصفور
Apr 17, 2013 - 11:19pm

twowolfgangs

you are outed. everyone say Hi to Krugman!

Mr. Fix
Apr 17, 2013 - 11:23pm

Dear Wolfie:

Your thesis that central planning is good, and that it is necessary for the “business cycle”

overlooks the obvious.

Central planning is destroying businesses, and I believe it is intentional.

And even if it is not intentional, and that somehow the “idiots in charge” screwed things up,

then at some point, they would realize the “folly of their ways”, and change course.

What we are witnessing is the complete opposite of that, they are “doubling down on dumb”.

Therefore, your support of central planning is misplaced.

A lot of the problems that we are facing today would not exist if markets were truly free.

The only remedy for our current situation is more freedom, not less.

As far as your disagreement with the a majority of the people on this site,

that's not going to go away,

if you look at the top of the first page, it is about the "end of the great Keynesian experiment".

Most of us believe that Keynesianism is a failure, you seem to believe that somehow it has all worked out well.

It hasn't, and it can't.

Besides, what we're looking at is not really Keynesianism, it is theft, fraud, and utter lawlessness.

It's just being called Keynesianism.

Therefore, it is unlikely you are going to find many friends here that are like-minded.

Good luck with that.

Gold Dog
Apr 17, 2013 - 11:26pm
القراع عصفور
Apr 17, 2013 - 11:27pm

pforth

i'm in the same boat. i held onto my miners way too long. i am selling. the CEO's/boards of these miners must be complicit or they would have something to say to their shareholders. i believe that the major miners are all infiltrated by the bankers, and the up and comers that don't get in line get taken out completely.

if anyone disagrees, go ahead. talk me out of this if you can. it is killing me to sell, but i have been losing too much money, sleep, and my health.

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