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This is now a confrontation between We the peopl

first_imgThis is now a confrontation between “We, the people”…and “all the money and all the power in the world.”With the U.S. shut tight for Thanksgiving on Thursday, the price and volume activity in all four precious metals everywhere else on Planet Earth was subdued…and that’s being kind.However, the ‘Black Friday’-shorted trading day in New York was a different matter entirely.Gold traded pretty flat in early Far East trading on their Friday…but during the Hong Kong lunch hour, it began to developed a slightly positive bias…with the European high tick coming at the 10:30 a.m. gold fix in London.From there it more or less traded flat until about 10:15 a.m. in New York…and then it blasted off to the upside, which had all the hallmarks of a short covering rally of some kind.  That only lasted a few minutes, but from there the price continued to work its way slowly higher.The high tick of the day…$1,756.10 spot…came around 12:45 p.m. Eastern time…and then backed off a few dollars into the close, which came early at 1:45 p.m.Gold closed at $1,751.90 spot…up $22.20 from Thursday’s close.  The net volume over both Thursday and Friday was very light…around 117,000 contracts.  Switch/roll-over volume was heavy.The silver chart is almost a carbon copy of the gold chart, so I’ll spare you the usual play-by-play. The high tick of the day…$34.28 spot…came around 12:15 p.m. during the New York lunch hour.Like gold, silver got sold off a bit from there and traded more or less sideways into the 1:45 p.m. close…but the price sure looked like it want to move higher if it had been given half the chance, which it wasn’t.The silver price closed at $34.10 spot…up 75 cents.  Net volume for the two trading days was also very light…around 28,000 contracts.The dollar index decline continued for the third straight day on Friday.  After sliding 10 basis points on Thursday, the dollar began to head south with a vengeance starting at 12:30 GMT in London…7:30 a.m. in New York.  The decline ended shortly before 12:30 p.m in New York…almost exactly five hours after it had begun in London.  From there, the dollar index recovered a few basis points going into the 5:00 p.m. Eastern close of trading.  The index closed at 80.21…down a hair under 49 basis points from Thursday’s close.One would be hard pressed to match the rally in the precious metals to the dollar index chart below.  The only co-relation I could see was the fact that the rallies in gold and silver ended at approximately the same time as the index hit its nadir.  Here’s the 3-day dollar index…And Friday’s chart on its own…The gold stocks nearly duplicated the price path of the metal itself, but a thoughtful seller showed up at 10:30 a.m. Eastern time and sold the rally down hard.  From there the gold stocks moved slightly higher…and closed just off their highs of the day.  The HUI finished up 1.64%.As a group, the silver stocks put in a much better performance…especially most of the junior producers.  Nick Laird’s Silver Sentiment Index closed up 2.14%.(Click on image to enlarge)The CME’s Daily Delivery Report showed that only 1 lonely silver contract was posted for delivery on Tuesday.  There should be next to nothing left to deliver in the November contract between now and First Day Notice [for December delivery] next Thursday evening.There were no reported changes in GLD yesterday…but it was an entirely different story over at SLV, as an authorized participant[s] withdrew a whopping 1,984,432 troy ounces of silver and shipped it off for parts unknown.  That’s one full day of world silver production.  This withdrawal had nothing whatsoever to do with price activity and everything to do with the fact that the silver was more desperately needed elsewhere, so the corresponding number of SLV shares were redeemed…and the physical silver shipped out the door.There was a smallish sales report from the U.S. Mint.  They sold 75,000 silver eagles…and that was it.  Month-to-date the mint has sold 67,000 ounces of gold eagles…10,000 one-ounce 24K gold buffaloes…and 2,659,500 silver eagles.  Based on this data, the mint’s silver/gold sales ratio is a bit over 34 to 1.The Comex-approved warehouses did not receive any silver on Wednesday…and shipped only 90,143 troy ounces of the stuff out the door.  The link to this activity is here.Because of the Thanksgiving holiday, there was no Commitment of Traders Report published yesterday.  It will be posted on the CFTC’s website on Monday.This photo, along with the 1-paragraph commentary below it, was posted on Frank Holmes’ website yesterday…and I thank West Virginia reader Elliot Simon for sending it along.“For the ultimate gold lover on your shopping list, one amazing purchase you can nab is a Christmas tree complete with Disney characters and gold leaf ribbons made of 88 pounds of pure gold from a jewelry store in Tokyo, according to Reuters. The ornamental tree will set you back $4.2 million, but there’s also a smaller version available for $243,000.”It was nice to have a day off from writing this column, but because of that, I have quite a number of stories for you today…and I hope you have the time in what’s left of your weekend to at least read the ones that interest you.The real-time knowledge that JPMorgan is the big concentrated silver short not only represents the pinnacle of the history of the silver manipulation, almost by definition that knowledge must also be at the core of the manipulation’s future. JPMorgan has been the prime price determinant since the Bear Stearns takeover in March 2008 and they will remain responsible for the price of silver as long as they maintain their concentrated short position. Seeing how there is little likelihood of a transfer of the concentrated short position, the question becomes – can JPMorgan maintain and increase its COMEX silver short position indefinitely? I say…not a chance. – Silver analyst Ted Butler…21 November 2012I’ve got a couple of ‘blasts from the past’ again this week.  The first is a pop classic from 1967.  It was a Burt Bacharach/Hal David composition that made Dionne Warwick a superstar.  Everyone knows the song in one form or another…but here’s the original…and the link is here.  And if my memory serves me correctly, it was Herb Alpert himself playing trumpet in this piece.  Those were the days.The second piece is another short classical composition by French composer Hector Berlioz…the third week in a row I’ve featured his work.  This is the fourth movement from his monstrous symphonic composition Symphone fantastique.  It requires an equally monstrous orchestra to do this work justice…and that’s precisely what this recording offers. I counted 13 cellists…and that’s a lot!  Gustavo Dudamel conducts…and the link is here.  It’s a stunning recording…and I would have loved to have been at this performance.Well, I must admit that I wasn’t quite expecting what happened yesterday in the precious metal markets…and I doubt that many people were.  Nothing would surprise me going forward…up or down.  And as I’ve said countless times, I’ve got a perfect explanation for either scenario.  But what happens from here is anyone’s guess.The stories about countries and their supposed reserves held safely in New York or London are coming thick and fast now.  One has to wonder what is going on behind the scenes at the Western world’s central banks and bullion banks.  On the other side of the coin, one has to wonder what’s going on at the top levels of the gold and banking world in places like Russia and China…or the Gulf States.  This is not a penny ante poker game anymore…it never was…but more and more people are starting to realize how high the stakes are in this game.  This is now a confrontation between “We, the people”…and “all the money and all the power in the world.”  GATA’s Chris Powell made that remark more than ten years ago when we finally came to the realization of what we had stumbled over.It wasn’t just JPMorgan Chase and Goldman Sachs out to make a buck by scamming the gold traders.  It was more than that…and far more sinister.  It was G. Edward Griffin’s “Creature From Jekyll Island” in the flesh… and the Dark Lord of Morder‘s “most terrible servants”…the Nazgûl…all rolled into one.I haven’t the foggiest idea of where we go from here.  The only thing I can say is that you should be prepared emotionally and psychologically for anything.  Events are now happening so quickly that it’s really impossible to know what will happen next…and as this economic, financial and monetary train wreck approaches the end game, it’s a near certainty that even “all the money and all the power in the world” will stand helpless before it as well.I’ll leave you on that cheery note…and I’ll see you here on Tuesday. Freegold Ventures Limited is a North American gold exploration company with three gold projects in Alaska. Current projects include Golden Summit, Vinasale and Rob. Both Vinasale and Golden Summit host NI 43-101 Compliant Resource Calculations. The 2012 exploration program includes additional drilling on both Golden Summit and Vinasale. An updated NI 43-101 resource was calculated on Golden Summit in December 2011 and using a 0.35 g/t cutoff is 14,840,000 tonnes @0.66 g/t Au – hosts 316,000 ounces in the indicated category and 50,0460,000 tonnes @0.61 g/t Au – hosts 991,000 ounces in the inferred category. Drilling has been underway on this road accessible project since mid January. To date over 36,000 feet have been drilled since January on the project, of which 30,000 feet have been aimed at resource expansion. Drilling remains ongoing.  An updated NI 43-101 is expected to be completed in Q3. Additional drilling is also underway on Vinasale. Vinasale currently hosts recently updated NI 43-101 resource calculation of 49,320,000 mt @1.09 g/t for a total of 1,735,000 contained gold ounces in the inferred category using a 0.5 g/t cutoff. Please visit our website for more information. Sponsor Advertisementlast_img

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