Thursday Conversation - Chris Powell

47

Chris Powell of GATA joins us for a an interesting and enlightening Thursday conversation.

Over the course of this discussion, Chris and I hit three, primary points:

  • the primary work of GATA and the ongoing central bank interventions in the monetary metals
  • recent efforts to inspire government regulators to look into the mechanisms of price manipulation
  • the ongoing yuan-gold and/or SDR-gold "peg"

Many thanks to Chris for his time and please be sure to support GATA if you can. They are an invaluable ally in the fight against precious metal price manipulation and government-sponsored market intervention, in general.

TF

  47 Comments

procog
Oct 12, 2018 - 5:38am

Sooo.....The Internet is at risk?

Global Internet Could Crash In Next 48 Hours - "Outage Across The World"

Fri, 10/12/2018 - 04:15

The Internet Corporation of Assigned Names and Numbers (ICANN), which oversees the registry of domain names and IP addresses, is planning to perform a Root Zone Domain Name System Security Extensions (DNSSEC) KSKS rollover on Thursday.

"Rolling the KSK means generating new cryptographic public and private key pair and distributing the new public component to parties who operate validating resolvers, including: Internet Service Providers; enterprise network administrators and other Domain Name System (DNS) resolver operators; DNS resolver software developers; system integrators; and hardware and software distributors who install or ship the root's "trust anchor." The KSK is used to cryptographically sign the Zone Signing Key (ZSK), which is used by the Root Zone Maintainer to DNSSEC-sign the root zone of the Internet's DNS.

Maintaining an up-to-date KSK is essential to ensuring DNSSEC-validating DNS resolvers continue to function following the rollover. Failure to have the current root zone KSK will mean that DNSSEC-validating DNS resolvers will be unable to resolve any DNS queries.

The KSK rollover plans were developed by the Zoot Zone Management Partners; ICANN in its role as the IANA Functions Operators, Verisign as the Root Zone Maintainer, and the US Department of Commerce's National Telecommunications and Information Administration (NTIA) as the root zone," said ICANN.

Within the next 48-hours, internet users around the world are at risk for network connection failures as the main domain servers and related infrastructure controlling the internet will be powered down for some time, warned the Russian Times.

https://www.zerohedge.com/news/2018-10-11/outage-across-world-global-internet-could-crash-next-48-hours

As if Turd's update wasn't dicey enough. Good Luck everyone. This could be the major distraction TPTB need, RIGHT NOW!

Somebody please tell me this is not true. I know facebook just deleted many operators. Does this mean I may not be financially liquid? Please tell me. Does this mean I cannot get my money out of Goldmoney? Maybe I should by some junk.....ah, ......like that weird old silver in coin form.

......this must be a dream. I am going to take some more Melatonin and go back to sleep........

Thomas More
Oct 12, 2018 - 6:00am

This is similar to previous "crashs" EXCEPT

Premise - that sales of gold and silver on the Comex are used to halt stock market slides. I have been accustomed to watching this ever since 1987 when the stock market rally breaks an important support - Gold is sold to stem the decline. Hence my interest in the SP/GC ratio.

It is my opinion, as stated nicely by Ronnie (on previous threads) and Turd above, that gold will not be contributing to a stock market rally this time.

In Ronnie's case - they don't have enough gold on hand to make a dent in the problem. Ronnie has laid out how smaller precious/strategic metal markets are in an inventory squeeze.

In Turd's case - the USA does not want the Chinese to devalue any more, and the USA has undoubtedly got the message that no more devaluations if USA leaves USD Gold price alone. Plus inventory problem (above).

This morning we are getting a short covering rally in the SP futures - in the past this has always lead to a nasty down day for Gold. I am not expecting this this time (two points above). Plus the following chart gives a strong sell signal which I am NOT expecting to be undone easily. Even in February it took several weeks for the markets to stabilize. Add to that - higher Fed induced interest rates - hmm? Weaker Dollar - hmm?

If my premise is correct, then my second premise is that all of the Central Banks have been playing this same game shorting paper gold buying stock derivatives - ever since their meeting on April 1st 2009 in Dublin. If this is true then who can they possibly sell their SP positions to? Certainly not me!

Addendum

I am reposting my post from Podcast Tuesday October 9th: Oct 10 9:40

I think we all agree that you are onto something. But then you have to add into the mix - your reflection about the BPR Bank Participation Report (above) into your thinking. Because they are going in the same direction as the Chinese. In physics, two waves can can combine to produce a much bigger wave (in amplitude).

Maybe when Pres Trump met with the Chinese Pres, they laid out their wishes - compared notes - to see how both could succeed? Each time the stock market or dollar becomes weaker - Pres Trump threatens China with more tariffs. Then the now familiar cycle of algo reactions kick-in.

As someone has said above - we are in an Alice in Wonderland environment. Our only way out is through painful reality and TRUTH - seeking analysis like your friend Dave Kransler which lays bare the fragile state of our economies of the West.

Monday was an aberration because of Columbus Day. Eventually the US bond market will be what drags us all down as everything is linked to it - on that point Greg Manarrino is correct cf his post of last night.

For my two cents worth - I am watching the SP/GC ratio chart. On Friday October 5th it traded below its 20 day moving average for the first time since Semptember 12th, an island reversal, before that you have to go back to April 16th - around the time of your "awakening". Monday's gold slam got us back above the 20 dma - we are now back below it.

So in the mean time the hour-glass has only so many grains left to fall. More tariffs = higher interest rates ... fill in the dots yourself. I saw this yesterday - maybe someone has already posted it?

Have a good day - hopefully you no longer have "les pieds dans l'eau".

https://www.zerohedge.com/news/2018-10-08/ppgs-horror-quarter-reveals-nightmare-scenario-q3-earnings

hindsight101 petedivine
Oct 12, 2018 - 6:19am

Great analysis on the Markets - petedivine

"While First Majestic reached a high of $25 in 2011, I wouldn't’t be surprised to see it at least five times higher during the next bull market..." or so ist was written....

I suspect if it ever gets that high I won't either be involved or won't haven't been.

I used to do the math and come up with such bullish numbers myself.,,,but my reservation is the political and social chaos situation in Mexico which I don't think full or fair valuation will ever let materialize.

I am mainly sticking to the metals and north american and australian miners where the rule of law still exists, to some extent, and with the Sprott gold and silver trusts. Good luck for those who venture forth, I'll likely join you near the top, and nearly mark it.....if I am not smart enough (0r worn out enough) to swear such speculations from my style of investing forever.

hindsight101
Oct 12, 2018 - 6:29am

Thomas More - GOLD vs. the dow 30

https://stockcharts.com/h-sc/ui?s=$indu:$gold&p=W&yr=3&mn=9&dy=0&id=p35742176404&a=6424864&listNum=1

Above is a chart of DOW vs GOLD....big move this week for gold in support of your thoughts.

The trend may have just changed.....not enough physical to be used to suppress the market?

Lets see if $1220 holds.....bet there is an important moving average near by

https://www.barchart.com/futures/quotes/GCZ18/interactive-chart

Chinese may be about to realize they can't restrain the price of gold in which case a big move is forthcoming.

Hillsie
Oct 12, 2018 - 7:32am

Yuan Gold Peg becoming mainstream

"Furthermore, this 'signal' comes at a time when the yuan is depreciating (in a non-manipulated manner according to US Treasury) against the dollar and as the petroyuan continues to rise in popularity, we are reminded of the apparent 'peg' that has developed between Yuan and gold"

https://www.zerohedge.com/news/2018-10-12/china-should-slash-ust-purchases-policy-advisor-warns


Oct 12, 2018 - 8:31am

trying....

Last is actually $14.72

cashonly
Oct 12, 2018 - 8:32am
Thomas More
Oct 12, 2018 - 8:34am
AKA AuAgforever AIJ
Oct 12, 2018 - 9:25am

McHugh / ready for the PM rally?

"Stocks Plunged across the board again Thursday, October 11th. They topped on our recent Phi mate turn date October 3rd, and have declined sharply since, the Industrials down almost 2,000 points. This plunge is a small degree wave 3 down move, or part of 3-down.The Bull market from 2015 looks complete, as its wave v-up move looks complete. That wave formed Rising Bearish Wedge patterns to identify the end, as they are termination top patterns. These patterns give downside price targets, which will be the initial downside price targets for the new Bear market. Those downside price targets are 24,000 in the Industrials, 2,600 in the S&P 500 and 6,400 in the NASDAQ 100.

There will be short-term rallies as this Bear market continues, and some of those rallies could be explosive. Our Plunge Protection Team Indicator moved to an "On" signal which means the odds are high that the PPT is buying the market hard and could force a short-covering countertrend rally at any time. Several indicators are showing the stock market is approaching a short-term oversold level. While more downside is possible over the short-run, we must be watchful for a short-covering corrective rally.

Our HUI key trend-finder indicators generated a new Buy signal Thursday, October 11th, as Mining stocks rose sharply. Gold and Silver also rose sharply. These markets could have completed wave 2-down and are now starting wave 3-up. If so, this could be a dramatic Bull market starting. The HUI Demand Power / Supply Pressure Indicator also triggered a new Buy signal Thursday."


Oct 12, 2018 - 9:26am
Wizdum
Oct 12, 2018 - 9:44am
Thomas More
Oct 12, 2018 - 9:48am

Wizdum

are you feeling fidgety today?

R man J
Oct 12, 2018 - 9:54am

Miners are being crushed

So they let gold and silver ETFs drift up, but they can still crush the miners.

HVGDF (-18%), SLVRF (-8%), USAU (-11%); FFMGF, EXK -5%

Wizdum
Oct 12, 2018 - 10:10am

more like..

..frustration

Thomas More
Oct 12, 2018 - 10:20am

These things

take time to turn around.

You got to get the knife catchers out of the way, the short sellers profit taking, algos rebalancing, margin guys covering margin calls - and Central Banks throwing in the towel (ha, ha - only kidding). They are strapped in there like the Kamikaze.

All above references to the SP - which influence gold and silver.

AngryCitizen
Oct 13, 2018 - 12:24pm

How Do I Keep Track

Of it all? It's beyond what I have time to do.

I guess I'll just be thankful that I can take advantage of the "blue light special" and stack some more...

hindsight101
Oct 21, 2018 - 5:24am

Having some trouble getting

Having some trouble getting on....this is a test

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