FOMC Wednesday

140
Wed, May 1, 2013 - 2:33pm

Today's FOMC Fedlines are a non-event. So now we turn to tomorrow.

Thursday brings some news from the ECB. Won't that be fun? Perhaps a reason for the paper jockeys to jam prices lower again? More likely, prices rebound tomorrow as today's shorts are squeezed back out. Then we do this same dance over again on Friday. We'll see.

For now, here's the FOMC statement from the ZH scribd page:

April Redline

Moving on, my thoughts on the day were summarized in this comment to the previous thread. Rather than re-type, how about a simple C&P:

"All you need to know is this: Nearly every important Eastern and Asian buyers market was closed today for May Day. Just like we've seen in the past, absent physical purchasers, the Spec HFTs and Cartel monkeys play freely to kill paper price. Today is no different.

The only real stories today are these:

https://www.zerohedge.com/news/2013-05-01/arizona-becomes-2nd-state-make-gold-silver-legal-tender

https://www.zerohedge.com/news/2013-05-01/crude-inventories-surge-record-high-energy-demand-collapses

https://www.zerohedge.com/news/2013-05-01/manufacturing-ism-drops-lowest-december-employment-drop-biggest-2008

https://www.ft.com/cms/s/0/f7d2e844-b253-11e2-8540-00144feabdc0.html#axzz2S3ls6nkg

https://www.bloomberg.com/news/2013-05-01/crude-falls-for-second-day-on-signs-of-economic-slowdown.html

https://www.usnews.com/news/articles/2013/05/01/weak-adp-estimate-raises-concerns-about-jobs-report

My enthusiasm for typing a new thread is low because I simply don't care what these baboons are doing to paper price. I don't. Gold (and silver) is being sold off because the global economic weakness is prompting paper traders to sell all commodities. And gold is a commodity? Not to me!! And screw the FOMC minutes. Nothing but worthless SPIN and MOPE. We all know by now that QE can't and won't end. EVER! Ending QE would collapse everything. Not going to happen.

Paper trading is completely disconnected from economic reality. Today's paper action deserves nothing but a cursory glance and shoulder shrug."

The only other interesting item at this time in the open interest and CoT survey. For the Wednesday to Tuesday reporting week, gold surged over $62 in price and its OI climbed by 6,000 contracts. Silver, however, was dealing with May contract expiration so, while it also surged forward by $1.36, its OI fell by about 15,500! This sets up another very interesting CoT report this week. Who, in silver, was buying/covering and closing May positions? Was it the Specs? Was it the Comms? How much by category? A very interesting CoT this week, indeed.

But the CoT is still 49 hours away. Before then, we're going to have all kinds of price volatility, likely enough to make us not even want to see the CoT as we'll all be ready for the weekend. Hang in there, keep the faith and let's see what tomorrow brings.

TF

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  140 Comments

erewenguy
May 1, 2013 - 3:14pm

top dozen

Ah well. That's what I get for reading.

Didn't buy today, but looks like I missed a good opportunity. My orders from Provident are slllllloooooowwwwww.

SRSrocco
May 1, 2013 - 3:23pm

THEM COSTS JUST KEEP ON RISING....

YESTERDAY, NEWMONT.... TODAY, YAMANA

Well, it looks like Yamana came out with their Q1 2013 report.... and it twasn't good.

YAMANA NET INCOME DOWN 40% COMPARED TO LAST YEAR

One good thing, Yamana did increase gold production. Let's take a look at the stats... shall we:

2012 Q1 Gold Production = 234,432 oz

2013 Q1 Gold Production = 248,239 oz

Now for the bad news...

2012 Q1 Revenues = $559.7 million

2012 Q1 Net Income = $170 million

--------

2012 Q1 Revenues = $543.8 million

2013 Q1 Revenues = $102 million (-40% yoy)

Rising Production Costs help destroy net income...

2012 Q1 Cost of Production = $191.8 million

2013 Q1 Cost of Production = $230.7 million (up 20% yoy)

-------

Anyhow... I am not bashing the gold Stocks... I think they are the real source of real money in the world. However, this just goes to show that as costs rise, so should the price of gold (if demand is there.. which it is).

zman
May 1, 2013 - 3:25pm

I thought Central Banks

I thought Central Banks bought US bonds or Gold, since when do they buy stocks, am I missing something? What happens if stock markets tank, are central banks going to be stock traders now? This could end very bad.

https://www.zerohedge.com/news/2013-05-01/bank-israel-double-down-stocks-will-invest-european-shares

AlexCojones
May 1, 2013 - 3:35pm

When CNBC goes into the Vaults - Shouldn't We?

When the main scheme media goes into the Gold vaults - and they have been doing this MORE and more frequently - shouldn't we heed their example too?

Go. Into. The. Gold. Vault.

And buy gold!

My LCS had a few gold items, mostly foreign coins and fractionals. I asked how much for a tenth oz AGE and he answered $170. Apmex sell is $182 and buy is $162.

LCS hits right in the middle.

dropout
May 1, 2013 - 3:39pm

Look Out! She's Gonna Blow!

The amount of debt held in the member margin accounts of the New York stock exchange, is now at the previous high set in early July of 2007! Of course the Fed will not withdraw support (printing) because to do so would cause the mother of all margin calls, with attendant short covering and causing a massive crash. Won't happen. Q.E. TO INFINITY AND BEYOND. The fed is now damned if do and damned if they don't.

delacroix
May 1, 2013 - 3:40pm

so cal coin shop

just bought 2 maples, still in the plastic and a libertad out of the generic bucket for $28 each. the owners daughter lets me flirt with her during the transaction, and thats priceless. my son got 2 libertads too. they had about 40 more coins and bars in the bucket. just doin my part to break the paper scam. several sellers in the store WTF?

billwilson
May 1, 2013 - 3:54pm

tomorrow

Watch GG before the bell with earnings. Each time majors have missed on earnings we have gone much lower. Yesterday NEM, today AUY. If GG does all right we might get a nice pop, otherwise ... With most of the miners now done reporting the opportunities for negative overnight news diminishes, making the next move possibly higher.

Silver Alert
May 1, 2013 - 3:55pm

top 9

Sinclair predicts we (gold) go down from here.

Actually, it was a prediction by CIGA Bo Polny that gold would turn down on 5/2 or 3. He even stipulated that the 'price may vary but the dates are set.' Sinclair endorsed this person and advised everyone to listen to him. This to me is tantamount to being no different than Sinclair making the prediction himself.

boatman
May 1, 2013 - 3:56pm

FOMC wenesday

not showing up in 'new blog posts' here.

Orange
May 1, 2013 - 3:56pm

"And gold is a commodity? Not to me!!"

It's okay Turd, we are legal.

https://www.cbsnews.com/8301-250_162-57582317/arizona-bill-recognizes-go...

By

JAKE MILLER /

CBS NEWS/ May 1, 2013, 11:03 AM Arizona bill recognizes gold, silver as legal currency

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