Tag Archives: LBMA price rigging

Japan Is Signalling The End-Game For The U.S.

On a side-note, it’s important to know that late July/early August is seasonally the most quiet part of the year for the biggest eastern hemisphere gold accumulators. And we’re going into the “roll” period, when the bulk of the massive blob of August paper gold “rolls” into December, the next “front month” for Comex Paper gold. Having said that, China has actually slightly increased its gold imports this month. India has been in hibernation since March 1 but it’s biggest seasonal buying period starts in about four weeks. Unless smuggled gold into India is significantly greater in volume than anyone understands, India’s demand will be somewhat price inelastic and its elephantine appetite for gold will have a big impact on the price of gold.

This leads us to Japan. Curiously, Japan announced announced last week that its TOCOM Untitledcommodity exchange (Japan’s less corrupted CME-equivalent) would begin trading physical gold – like the Shanghai Gold Exchange – on July 25th – TOCOM Physical Gold.  It also announced that it would be introducing a delivery-at-settlement option for its current-month gold futures contract. That is, TOCOM gold futures buyers will now have the ability to take delivery of physical gold via TOCOM’s paper gold.

The news of this event was largely muted in the western financial media and even the alternative media blogosphere largely seems to have overlooked the news release. But this is a highly significant development because it signals a subtle shift in Japan’s economic and monetary focus from west to east.  It will also create an big upward price-readjustment in gold and silver.

The significance of Japan’s TOCOM exchange shifting from all fiat paper contracts to a physical gold trading and settlement operation is reinforced by the fact that two days ahead of the announcement it was reported that Tanaka Kikinzoku Group – Japan’s leading precious metals trader, refiner and manufacturer – acquired Swiss-based Metalor Group, one of the world’s largest refiners and supplier of precious metals-related products – Tanaka Buys Metalor.   Furthermore, in March 2015, Japan’s Asahi Holdings – a collector and refiner of precious metals – closed its acquisition of Johnson Matthey’s gold and silver refining business.  JM is one of the leading producers of refined precious metals products, including LBMA-quality 400 oz gold bars.

Now that Asia and Russia are no longer funding the U.S. Treasury debt printing press, the Fed will be forced to begin hyperinflating the money supply to keep the Government funded.  This fact is underscored by the Cleveland Fed President’s – Loretta Mester, a voting member of the FOMC –  recent comment about “helicopter money.”

While the Japanese continue to endorse the U.S. Government’s  use of the yen as a de facto printing press which enables the Fed to manipulate the U.S. stock market and to fund U.S. Treasury’s unrestricted  issuance of debt, they see the proverbial writing on the wall for the western monetary and financial system.  Japan has been quietly pivoting economically toward China for a couple years.

This abrupt transition into the physical precious metals market signals Japan’s move to integrate its financial markets and economic system into the developing eastern bloc monetary system, which appears as if it might eventually be seeded in gold.  It likely signals the end-game for the United States.

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GLD/SLV Ponzi Scheme – GET Physical Gold/Silver

A lot of investors have invested in GLD and SLV under the mistaken assumption that they are investing in “gold.”  In the latest episode of the Shadow of Truth, we discuss why GLD/SLV are Ponzi schemes created as a mechanism to control the price of gold/silver.  We also report the latest on China’s massive investment in the new Silk Road and why it will change the world – The Daily Coin published and extensive article on this topic:  Silk Road. Investment Research Dynamics explains why the Central Banks are losing control of their precious metals price control scheme:   LINK.

Gold Looks Ready To Spike Higher – JPM Gets It Wrong Again

These are the most gold-friendly readings in almost 2 months. India is getting ready to participate in the world gold market again. India’s gold imports drop 80.48% to $972.9 million in March documents what a heavy blow the Indian gold retailers strike struck to global gold. JBGJ guesstimates March imports at around 24 tonnes meaning some 120 tonnes of demand was lost in March.  – From John Brimelow’s Gold Jottings.

The quote above from Brimelow’s Gold Jottings report is in reference to the fact that gold import price premiums in excess of the import duty India’s gold market began to appear again.

Since the big move higher through early March, gold has been surprisingly “resilient” up to this point from repeated attempts to manipulate the price lower. The most common occurrence has been attempted “flash crashes” during early Asian trading. Interestingly, gold has tended to rally after the London a.m. fix and into the NY Comex floor trading hours. Perhaps most surprising is that the bullish activity has occurred in the absence of demand from India. India’s jewelers have been on strike since March 1, which has effectively closed down India’s massive gold import machine (excerpt from the latest issue of the Mining Stock Journal).

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The graph above (click to enlarge) shows the big “cup/handle” formation that has formed in gold since its extraordinary move since mid-December.   “Extraordinary” because the gold market has had to endure strong headwinds in the form of a literal avalanche of anti-gold propaganda from the financial media, financial cable networks, Wall Street banks and even some of gold’s supporter.

As you can see from that graph, gold has been “oscillating” sideways, digesting the 21% bottom to top move it made in a short period of time.  Perhaps most impressive about the move is its durability despite a continuous flood of paper gold thrown at the market by the Comex bullion banks, per the CFTC’s Commitment of Traders report.  In fact, the latest report released last Friday showed a big spike higher in the bullion bank net short position in both paper gold and paper silver.  Typically this signals an imminent, manipulate price-plunge, enabling the Comex operators to cover their shorts at a handsome profit.

Too be sure, the technical formation in the graph above could break either way.  From a technical standpoint, it would not be atypical to see the price of gold to pullback to the “rim” of the cup (112 area on GLD) or even down to the 200 dma (red line, 109.40).

But the market manipulators will not be getting help from India, who’s elephantine appetite for gold at this time of year appears to be picking back up or from the public, which has been converting paper fiat dollars into gold at a record rate per this report on gold eagles sales by SRSRocco.com.

JP Morgan’s mining stock analyst issued a report on Agnico Eagle (AEM) in which he made the assertion that, “the company’s exploration efforts have yielded good results, resulting in an increase in the share price, even against declining gold prices.”  Hmmm.  I wonder what kind of smokable material JPM’s analyst has been putting into his pipe (click to enlarge:

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Can someone please show me where on that graph that AEM’s price is rising “against falling gold prices?”  Just eye-balling it, I would say that AEM’s price movement is about 85-90% correlated with that of gold’s.
Too be sure, AEM is one of the few large cap mining stocks that I would ever consider owning.  And I will alert subscribers to the Mining Stock Journal when I see a trading opportunity in AEM stock.  However, currently I would recommend finding high quality juniors.  We had two stocks in the fund I co-manage that were up 24% and 20% today.  And my latest issue of the Mining Stock Journal features a stock that is below 30 cents and could easily double or triple once the general market discovers it.  Currently I’m distributing every back-issue of the MSJ to new subscribers, but that offer will end soon.