Pre-Bernank Post

130
Wed, May 22, 2013 - 10:05am

Just a quick post as The Bernank is due before Congress at 10:00 a.m. EDT.

Five things...in no particular order...

First, the Yen is rolling over again. In case you missed it, here's a reprint of a chart I posted as a comment back on Sunday. I went searching for something historical. One, to put the decline into context and, two, to look for a potential bottom level. Well, I think I found a bottom and it looks to still be a ways away. Maybe 85/115?

The open interest levels as we approach FND for the June13 gold are getting more interesting. The latest number is as of Monday. This leaves us with 8 trading days to go (including yesterday, for which we get the numbers today). As of Monday, the total OI in Comex gold had grown to 453,048. Interestingly, this is the highest OI level since March 13th. Additionally, with 8 days to go until FND, the June13 OI still stands at 186,952. Now don't go getting too excited just yet...but...with 8 days to go before FND for the April13, OI stood at 176,921 and with 8 days to go before Feb13 FND, the Feb13 OI was 187,059. Could we get 12,00-15,000 contracts standing on FND? Maybe. Why is this important? As of last evening, the total Comex registered inventory stood at just under 52 mts. Some quick back-of-the-envelope math reveals that this is only enough gold to settle 16,680 contracts. Hmmmm...

And this is fun. The GLD shed another 8.42 tonnes of "inventory" yesterday, dropping the alleged total "inventory" back to 1023.08 metric tonnes. How long before the total tonnage drops back into he triple digits? At this rate, not very. And chew on this little nugget I was sent yesterday: Back in the day, the GLD added about 230 mts in a little over a month. From 1/16/09 to 2/18/09, the "fund" went from 795.5 mts to 1024.09. Again, hmmmm. We are now back to that level. Will we now see 200 tonnes exit the "fund" in rapid succession???

Jim Quinn has written another excellent article. Please read this today: https://www.theburningplatform.com/?p=54125

And, finally, please check out the growing list of prizes for the Riff-Raffle. We've added several new items, most prominently, a one ounce Gold Philharmonic coin. This brings the total gold coins to be given away up to two!! The deadline for buying tickets has been extended to Friday so please consider purchasing a few and taking your chances. The current pool is about 450 tickets so you still have a decent shot at winning!

Have a fun day and enjoy the pleasant mutterings of The Bernank!

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  130 Comments

Silver_investor
May 22, 2013 - 10:31am

Confirmation of what we already knew

And that is that QE isn't going to end.

“A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further,” Bernanke said today in testimony prepared for a hearing at the Joint Economic Committee of Congress in Washington. Monetary policy is providing “significant benefits,” he said."

https://www.bloomberg.com/news/2013-05-22/bernanke-says-premature-fed-tightening-would-endanger-recovery.html

Northern Border
May 22, 2013 - 10:34am

Burning PLatform

Wow, what a great piece from Jim Quinn. I am 33 years old and right in between Millennial and GenX'ers.

Interesting dating the Millennial age group. Women in that age group are never satisfied because they see all these stupid shows like the Bachelor and have this false sense of reality of what a good relationship is all about. I guess its kinda goes with the article, "false reality" and that most people choose to live in the "Matrix" and ignore reality. The band keeps playing until the misuc finally stops. The reality smacks you right in the face!

Senseless rambling done,

NB

PS. Nice mini spike in the metals this morning.

ChewYourOwnFaceOff
May 22, 2013 - 10:36am

Poof

Well, we had a few minutes of pleasant memories from the past anyway.

Zoltan
May 22, 2013 - 10:40am

Release the Bernank

Lately whenever this clown is on tv the metals have gone down. I miss the days when his stammering and sweating were good for a big spike to the upside.

Looks like the initial spike was a bull trap. He isn't done yet. One slip of the tongue could still end the FUTF.

Z

dgstage
May 22, 2013 - 10:41am

LOOKS LIKE

a start of a shooting finger again in the charts. What's up?

OughtImpliesCan
May 22, 2013 - 10:41am

Today's post-Bernank takedown

Today's post-Bernank takedown is far more egregious and blatant than even the middle-of-the night smash downs for a few %. Gold/silver can't even be allowed to rally when Bernank lets us keep the punch bowl? What if he announced additional QE--would be see $18 silver? Completely disgusting and disturbing. We're on the cusp of something crazy.

Marblesonac
May 22, 2013 - 10:42am

Whiplash

straight up, then straight down

¤
May 22, 2013 - 10:43am

More Yen Chart historical comparisons...

As of May 21, 2013....

And the historical chart comparisons in times of Yen weakness...

Silver_investor
May 22, 2013 - 10:43am

Well, that was quick

Even stocks have already petered out. About 20 minutes ago the Dow was up 150 points. Now it's only up 90.

May 22, 2013 - 10:45am

Convenient Coincidence

The Bernank's "prepared remarks" are released. Gold shoots higher to a PM FIX of $1408.50.

Then The Bernank talks everything back down. Shrewd.

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