Just Some Charts

219
Mon, Apr 22, 2013 - 1:49pm

Because it's late and this is about all I can handle for today.

We had a little bit of a rally today but did you notice that gold was stopped in its tracks when:

  1. The Comex opened for trading and
  2. It had reached the all-important "2% cap". In fact, there was a clear movement afoot to close gold back under the 1% cap and they nearly made it.

So, now, here we are. Yes, it's always nice (and rare) to begin the week on an UP note. But don't be fooled...nothing much has been accomplished. I had expected/hoped that the drop out of the 19-month ranges would be nothing but a brief, stop-running exercise. Instead, the thing took on a life of its own last Monday and now we learn via the CoT that The Cartels didn't even cover. The LargeSpecs did. All of this infers that further weakness and volatility may be coming. Let's hope not but until prices get back into the 19-month ranges (above $1525-1550 and $26), we must remain vigilant.

And here is your homework assignment / thought experiment for the day. I want you to print off these three charts. Place the gold chart on top of the copper chart and hold it up to the light. Then, do the same with silver and copper. Having done that, let me ask you this:

Why are these charts nearly identical? Other than being elements on the periodic table, what do these metals have in common. If your list of commonalities is short, why do they trade as they do? And because they trade nearly in tandem, what does this say about the current method of price discovery?

OK, that's all. Gotta go. Have a great day!

TF

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  219 Comments

Hagarth
Apr 22, 2013 - 7:04pm

Best thing ever is a Global slowdown!

After looking at Mr. Fergusons chart, my original idea that copper would fall causing miners to stick to the high grade Cu ores thus diminishing the silver production would seem to be spot on.

Sure its awfully early to expect them to do this now, and it would be terrible to have to wait but if TEOTWAWKI doesn't happen global growth and resources will be crushed.

After everything that has happened in the last month the approaching Superstorm seems have its winds in the CAT 1 area. Maybe bordering on the CAT 2, ILL WINDS A BLOWING!

Mr. Sinclair mentioned the Basel III requirements for Bail-ins earmarked for this year NOT 2015 as proposed, BUT Christine Legarde pushed for EARLY IMPLEMENTATION with some support coming from other banker lackeys. THE CRAP IS ABOUT TO HIT THE FAN.

NOW IS NOT THE TIME TO SECOND GUESS TURD. YOU'RE ON THE RIGHT TRACK AND YOUR FAMILY REQUIRES YOU TO THE BEST YOU CAN FOR THEM....NOT US!

Mickey
Apr 22, 2013 - 7:18pm

all the markets are broken

so what markets are not behaving abnormally?

Mood here is subdued which probably means those who like gold for the long term but are not here are also subdued.

Exhausted more like it.

While we might have a knock down now I surmise most everybody here is already light PM. And there is not too much BTFD going on from our crowd despite all the shortages in silver.

My guess is there are a lot of newbies in PM because they remember well what's happened to the upside and never got in so they swore to themselves if the price dropped sufficiently they would buy in.

I am light metals now-want to see some upside action before putting fiat to work. But I do not want to chase prices---that's when it gets dangerous.

I can see cartel or whomever playing a set up for those chasing prices.

The bounce we have recently had was just that. Good chance some of us may be selling into this rally. But lets say this continues --if we get back to 1500 I'd say we get strong buying especially if we start seeing 10-15 every day during the NYSE day. With minimal pullback. Then you accelerate your buys whether physical or paper.

Then, just when everybody is getting excited again, pop. Thats how you do the damage.

Having said all this, even though this is a community, we are all on our own.

Mickey
Apr 22, 2013 - 7:26pm

I am also of the opinion (with others)

that the system is broken. Look how many gyrations cb's and govts are going thru to buy some time.

There will be a trigger to create a series of events to take down the system. If I knew when I'd be out of the market till the day before (except for my physical). But it will be "fast and furious" when it comes. Then people not in PM, of food will really be chasing prices.

Flying Wombat
Apr 22, 2013 - 7:37pm

Eric

Good stuff. Thank you.

Apr 22, 2013 - 7:44pm

Oh my goodness

Another 18.35 metric tonnes withdrawn from the GLD today. You're not supposed to notice that price was rebounding and that those who were going to sell have now most likely sold.

Regardless, this brings the total withdrawal since 4/11/12 to 76.71 metric tonnes. Using our old quantification system, that's:

2,466,283 troy ounces

OR

6,166 London bars

OR

32 of these pallets. Since Thursday, the 11th. Right before this "episode" began.

Apr 22, 2013 - 7:46pm
EWS111
Apr 22, 2013 - 7:48pm

Warning to other Turdville

Warning to other Turdville Physical investers!!!!! ---- Goldmart!!!

Evidently at Goldmart "In Stock - Ready to Ship" doesn't mean the same thing that it does at Apmex, Provident, or Tulving!

I placed an order with them 4-4-13 they acknowledged they received my funds on 4-8-13. The item I purchased (ASE's) was shown to be In "Stock - Ready to Ship" from before my order till 4-17-13. At that time they went to a "Delayed" listing on the item which is understandable!

My point is this! I was under the understanding that if the item is in stock ready to ship and You place a paid for order order, the item is then allocated to You and within the stated shipping policy and no matter what happens to the supply chain in the future it wont affect your order. I know this to be the fact with Apmex, Tulving, Provident, and Texas Precious Metals!

I'm not unreasonable in that Provident and Apmex are showing EXPECTED availability 0f 4-30 on ASE's. I realize that were I to place an order with them on ASE's I would be taking on the risk that there supplier didn't come through on 4-30 delivery!

What do You Think?

champuga
Apr 22, 2013 - 7:52pm

Silver down for the week now

Unbelievable...no physical for sale but paper price keeps going down

Apr 22, 2013 - 7:55pm

And this is very good

https://www.theburningplatform.com/?p=52921

"If the FBI can track down two homicidal Chechen nobodies inside of forty-eight hours of their Boston bombing caper, you kind of wonder how come the Bureau can’t detect the odor of racketeering, insider trading, and wire fraud in this month’s orchestrated smackdown of the gold futures markets, including the parts played by the Federal reserve, one or more too-big-to-fail banks, self-interested big money players such as George Soros, slumbering regulators at the Commodities Futures Trading Commission, and tractable editors at The Wall Street Journal and The New York Times...."

Apr 22, 2013 - 8:05pm

And we must watch this closely

From Harvey tonight:

The following is very scary!!!
Thus the dealer inventory (registered) rests tonight at 2.280 million oz (70.9) tonnes of gold.
The total of all gold at the comex (eligible) rests at 8.781 million oz or 273.3 tonnes.
The comex is slowly losing its gold both at the dealer end and the customer.
The CME reported that we had 42 notices filed for 4200 oz of gold today. The total number of notices so far this month is thus 10,415 contracts x 100 oz per contract or 1,045,700 oz of gold. In order to establish what will be the total number of gold ounces standing, I take the OI for April (585) and subtract out Monday's delivery notices (42) which leaves us with 543 contracts or 54,300 oz left to be served upon our longs.

Thus we have the following gold ounces standing for metal:

1,045,700 (served) + 54,300 oz (left to be served upon ) = 1,100,000 oz or
34.21 tonnes of gold.

we lost 3500 oz of gold standing for the April gold contract. This is turning out to be a very big delivery month!

With nearly 35 tonnes standing for delivery in April, simple math now shows the registered inventory being only sufficient to cover two more delivery months...June and August...not even considering how many will jump the queue and barge in for May or July.

Hmmmm.......from where will the banks find registered and deliverable gold when the well runs dry???

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