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

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  130 Comments

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Wizard
May 22, 2013 - 2:56pm

A novel way to look at the market

Keiser Report: Down is New Up, Up is New Down

https://www.youtube.com/watch?feature=player_embedded&v=eKxr64P1W3E#t=0s

Listen carefully to the interview with sandeep. Very interesting

I think this may have a ring of truth to it, Now it all makes sense we are just looking at it upside down LOL

W

Cry Me A River
May 22, 2013 - 2:56pm

Bohemian

Elwood's fine---He's singing about the new Rubber Currency:

Blues Brothers - Rubber Biscuit
Big Buffalo
May 22, 2013 - 2:55pm

Holiday Weekend

Metals usually get beat up on 3 day weekends, right?

billwilson
May 22, 2013 - 2:53pm

To anyone that thinks it is not a manipulated market

Did anyone see the nice control of the XAU (miners) index from 2:15 to about 2:45. They had managed to keep it up even with a declining gold price, but after the minutes it fell and slowly edged down close to unchanged bit by little bit. Then with the overall market getting hit they just held it there, right at even for the day ... steady as a rock, varying by maybe .01 points. That is quite impressive as the XAU has about 20 stocks in it and it is not a traded index, meaning you have to get 20 stocks to behave just so to hold it flat. Impressive, dare I say masterful. But random ... no way.

CcanuckDollarMenu2
May 22, 2013 - 2:47pm

@$Menu

Once you go "Stack"...you never go back...lol

Ccanuck

BohemianCry Me A River
May 22, 2013 - 2:46pm

@JakeBlue

Good job, Jake. How's Elwood...?

"Let's see when this might occur on my chart: If my original depletion rate were used, it would show that we'll get there in about 5 months by 10-23-2013 using a 30-day MA to generate the data."

Hmmm... So, it could be anytime between July and October. And the new US$100 bill will go into circulation on October 8, 2013, right? Yes, it works for me.

Ccanuckdgstage
May 22, 2013 - 2:44pm

Dstage re: $100 Buffalo

I seem to remember the same talk when the $20 for$20(1/4oz.) came out, the Mint was forecasting a price of $80oz...lol

Is the coin a good value for Canadians??

The $100 face value gives the perception of backed by Gov. ... I hear lots of "can't be worth any less" .... lol

However, you would be very hard pressed to find a Bank that would willingly give you a $100 for it; I do not know of any.

Its' a Gimmick, ..... Step right up...Sell'n Out Fast!! .... Get'em while they're Hot!!!.....LOL

Ccanuck

Edit: There has been 7 or 8 $20 for $20's issued, all sold out.

I would think there will be many more $100 for $100's issued in the future...then $500 for $500 3oz coin...hyperinflation of the pm's...lol

DollarMenu2pforth
May 22, 2013 - 2:43pm

Editorial comment...

You know Pforth, you should really say "smash the PMs/PAPER", as we all know there is a disconnect forming between the physical and paper prices.

Do you know anyone, not under financial duress, who has sold their phys for fiat during the past - pick a period - ?

Once you cross the line from paper to phys, I think you'll find it is very hard to go back.

zman
May 22, 2013 - 2:41pm

So if QE gets tapered off,

So if QE gets tapered off, and things get bad in the economy and markets, isn't that more gold positive than the current QE program?

I say stop QE, and lets see what happens, and how quickly it would need to be restarted, bottom line, GO FOR Ben!!

Utilitarian
May 22, 2013 - 2:40pm

DrkPurpleHaze - Thank you for the search info

U just opened up a whole new world. Thanks for taking the time to fully explain how to use more of the features on this site.

Peaked into the search and your prior posts will be read and pondered.

Problem Solved :)

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