Tag Archives: Shanghai Gold Exchange

India’s Gold Demand Gets Rolling – An “Unofficial” Bottom?

Financial Markets, Gold, Market Manipulation, Precious Metals, ,

Our sales have increased by 30-40 per cent over the last week following a decline in gold prices. Given that the current price level will continue, we see this season as one of the best festive seasons in terms of jewellery sales in recent years,” said Rajesh Mehta, managing director, Rajesh Exports, one of the largest jewellery retailers in India. – LINK, as sourced from John Brimelow’s “Gold Jottings”

I say “unofficial” bottom to this 9-week manipulated take-down in the price of gold because we don’t know to what extent the western Central Banks will throw paper at the NY and London gold “markets.”  But based on the latest Commitment of Traders report, the bullion banks are covering their shorts fairly aggressively while the moronic hedge funds dump their longs and try to chase the market lower by piling in to the short side. This has always been a recipe for at least short term move higher in the metals.

But the cartel’s takedown of the paper gold price has created a nice ex-import duty premium bid in the Indian gold market just ahead of India’s festival season:  “Dropping of the rates depend on the international market. If it continues, we are sure to have a bumper Diwali this year,” said N Anantha Padmanabhan, regional chairman, All India Gems and Jewellery Federation – LINK.

Please note that a sudden surge in legal kilo bar imports will not depress dore bar importation or smuggling, the latter of which is now estimated to fill about 30% of India’s annual gold demand now.

Recall that China was closed last week, while India was transitioning into it’s biggest buying season.  The banks used this opportunity to launch their most aggressive paper attack on gold since 2011 in London and on the Comex.   They also used the big drop last week to print profits at the expense of hedge funds and whiny retail bucket shop traders. But, the western gold cartel take-down of gold using paper has helped ignite India demand:  “In the past fortnight, gold has fallen in the international market by 5.8 per cent; the price in India is down 4.9 per cent. With the ‘pitrupaksha’ period over, when buying of gold is considered inauspicious, festive demand has started – LINK.

With the bullion banks covering their illegal paper shorts, gold is the most oversold that it’s been in 3 years.  I suggested several weeks ago that we might get a “200 dma” pullback. Here it is:

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Again, I’m calling an unofficial bottom because, in a system that allows a criminal to run for President, there’s not telling the degree to which Wall Street will resort to illegal market manipulation in order to keep a lid on the price of gold. But  I am certain that the Indians, Chinese and Russians will – as Alan Greenspan would say – “measurably” increase their “consumption” of physical gold.

I will be reviewing and updating my favorite junior exploration picks in this week’s Mining Stock Journal.  I am featuring some graphs which reinforce my view that this sell-off is over, with the market “percolating” for another big move higher – possibly ahead of the next Fed policy move, which I believe will entail more QE.  I am also going to present some ideas to take advantage of the oversold condition of the highest quality large cap mining stocks.   You can subscribe to the Mining Stock Journal with this link:  MSJ Subscription. This includes email delivery of all back-issues.  The last issue featured a silver explorer trading below 50 cents that could ultimately be a $10 stock.

China And Russia Look To Take Over Global Gold Trading

Financial Markets, Gold, Market Manipulation, Precious Metals, , , ,

BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets,” First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS  – RT.com, April 19

The article in RT.com from which the above quote is sourced surprisingly did not receive a lot of attention from the alternative media.  Perhaps it was overshadowed by the highly anticipated move by China to commence fixing the price of gold on the Shanghai Gold Exchange in yuan.  I suggested that we would not see an immediate impact on the price of gold, which we have not, but that the move was part of a larger plan by China to “de-dollarize” the world.

Also largely ignored by the alternative media was the fact that Russia added another 500,000 ounces of gold to its Central Bank reserves – data provided by Smaulgld.com. To put this into some context, currently the Comex, which is sporting over 50 million ounces of paper gold open interest, is reporting 643k ounces of gold designated as available for delivery (“registered”).   In 2015, Russia added a record amount of gold tonnage to its Central Bank stash.

I would argue, as would many, that China and Russia are strategically and methodically weaning the world off paper gold and fiat currencies and are looking to officially remove the dollar from its reserve status and to re-introduce gold into the global monetary system – without triggering WW3.   Of course, this would explain the Obama Government’s recent military belligerence toward both countries…

Dennis Gartman, among many others, has expressed anxiety over the net short position in gold futures by the “commercial trader segment” bullion banks per the Commitment of Traders report.  The fear is that the banks are getting ready to attack the price of gold with another hedge fund “long liquidation” operation.  This, of course, is a trading pattern in the precious metals that we have become accustomed to enduring since the bull market began in 2000/2001.   Obvious manipulation that for some reason seems to be undetectable by the Government regulators (CFTC) who are paid by the Taxpayers to enforce laws.

I looked at some statistics from the COT data that goes back  to 2005 (compiled assiduously by one of the partners in the investment fund I co-manage).   While the net short position in gold futures held by the bullion banks, 240,121 per the latest COT report,  is quite a bit higher than the average net short over the period (-161,781), it’s not even close to the highest net short of -308,231 in December 2009 or -302,740 in September 2010.  In 2009, gold sold off for a bit after that -308k reading  but in 2010 gold continued higher toward $1900 after the -302k reading.

The point here is that the relative net short position held by the criminal bullion banks is not necessarily the best predictive metric with which to forecast the next move in the price of gold. Furthermore, it’s quite possible that the physical gold market activities being conducted by China and Russia will act as a counter-force to the manipulation efforts exerted by the western Central/bullion banks.

I have argued for years that traditional chart and t/a analysis applied to the precious metals is thoroughly useless because of the high degree of intervention by the Central and bullion banks.

With that reservation about using charts, I wanted to present a couple charts of gold and one of the dollar because, in my view, gold is potentially set up for a monster move higher and the dollar appears to be potentially headed off the proverbial cliff (click on images to enlarge):

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Untitled-1 The graph on the above-right is a 10-yr weekly of gold. You can see that over this time period, the price of gold is still exceedingly “oversold” per the TRIX indicator.  The graph on the above-left is a 1-yr daily which shows that gold has been “oscillating” laterally in a consolidation formation.  It’s brushing up against its 50 dma (yellow line).  Of course, at this point, the price of gold could “break” either way, higher or lower.   Perhaps even a quick trip down to its 200 dma (red line).  Having said that, the longer term graph of gold, combined with the massive demand for physical gold from Russia and China, suggests that every manipulated price hit should be aggressively bought.  You can see the dollar (lower left graph) is positioned treacherously, as it has traded well below its 50 dma and could be headed lower.  Certainly the ongoing economic and political deterioration of the United States is not giving anyone a reason to buy dollars.

There’s been a lot of “chatter” about whether or not the mining shares, which have had a tremendous run since mid-January, are “overbought.”  The general consensus is that the mining shares are due for a pullback and I know a lot of my subscribers are hesitant to buy right now.  My view is that, in the context of the brutal beating inflicted on the miners since March 2011 by overt manipulative forces – from both official entities and predatory hedge funds – it’s impossible to determine a true measure of “overbought” because the mining shares have been oversold for nearly five years.

I’m in an email group with a very impressive roster of precious metals investment and analytic professionals. One of them who is rather well-known made this comment today, which I thought summed up the situation perfectly:    Now everybody is desperately waiting on the sideline to build up a first positon in gold, silver and miners, but nobody wants to buy into the rally, but rather buy into a correction… that’s why I am convinced, that every bigger dip will be bought and gold might head to 1,400-1,500 by year end! 

The next bi-monthly issue of my Mining Stock Journal will be released Thursday. I have a sub-50 cent junior exploration stock to present with a market cap that is likely 1/10 the intrinsic value of the Company given the amount of proved gold and silver it has already discovered.  This company is self-funding for now as well.  You can access the next issue plus I’m offering the four previous back-issues (for now) by clicking here:  Mining Stock Journal.

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SoT – Jeff Brown In Beijing: Why Does The West Fear China?

Financial Markets, Gold, Market Manipulation, , ,

There are some serious heavy-weight challenges to the Bretton-Woods economic stranglehold on the world that are happening right now. A lot of events are percolating up right now…that should lead to a more equitable use of the world’s resources now.  – Jeff Brown in Beijing on the Shadow of Truth

China has been aggressively accumulating physical gold for a long time.  Anyone with any modicum of knowledge about the global precious metals market dismisses China’s publicly released 1,778 tonnes gold holdings report as readily as they dismiss the United States’ published gold ownership holdings.

Perhaps the most credible estimate of China’s gold holdings is based on research by Alasdair Macleod.  His research shows that China has been stockpiling gold at its Central Bank for a far greater period of time than is commonly assumed.  Further, he suggests that China holds at least 25,000 tonnes – LINK.

On Tuesday China will begin to price gold on its Shanghai Gold Exchange in yuan.  While no one knows if this will have an immediate affect on the ability of western banks to continue their inexorable manipulation of the gold market, it is likely another methodical move by China toward re-introducing gold back into the global monetary system.

The West, especially the United States’  neocon-controlled Deep State, is facing a global reset that is being engineered by China and Russia that is going to nullify the west’s Bretton Woods-based control of the global financial system.

Several other important building blocks for this reset have been or are about to be put  in place.  The establishment of the BRICS’ New Development Bank, which will open for business this month, is seen as an alternative to the IMF.  The Asia Infrastructure Investment Bank, which recently issued a $750 billion yuan-denominated bond, is funding alternative to the World Bank.

Most important is the imminent introduction by China and Russia of a trade settlement system (CIPS) that will enable participants to by-pass the west’s SWIFT system and to settle their trade transactions without using the dollar.

The Shadow of Truth hosted Jeff Brown, author of the China Rising website.  Jeff has been living in Beijing for several years and offers us a view of China that is not distorted by the heavily manipulated United States’ propaganda-infested news apparatus.

Hugo Price Salinas: The Crumbling World Order And Gold

Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economy, , , , ,

The massive “disintermediation” of physical gold from western Central Banks plus bank and ETF custodial vaults to the east, especially China, India and Russia will eventually be one of the biggest stories/events of this millennium.   This acceleration in the migration of physical gold this year has been triggered by the relentless manipulation of gold by the Fed/ECB/BoE and its agent bullion banks using fraudulent paper gold contracts.  Recently, the drawdown in the amount of gold reported to be in the vaults on the Comex and in HSBC’s GLD vault is nothing short of stunning.

Hugo Salinas Price has written a must-read essay on the collapse of the west and measures China will implement assume the lead role in a restructured global world order:

The Chinese evidently have some plans which they are not divulging, for we see that China is purchasing huge amounts of gold. In the meantime, the US insists on trashing the price of gold, as if to say that the Dollar is and will remain the world’s supreme currency till the end of time.

China is quietly accumulating gold and saying nothing. But we can try to guess what China is thinking: “The US is mired in an insoluble problem. Do nothing to provoke the US. The US will destroy itself in a huge collapse.”

You can read his entire analysis here:   The Crumbling World Order and Who Will Pick Up the Crumbs?

The middle class in the United States has no idea that a heavy 2×4 is being at the back of their heads.  By the time many of them realize what is happening, it will be too late to duck.

 

The Friday Gold Price Raid Reeks Of Desperation

Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economy, , ,

The bears are driving gold down into zones at which [Asian] physical demand will become prodigious.  – John Brimelow,  John Brimelow’s Gold Jottings Report

The economy is starting to collapse.  All the non-Government-reported economic metrics are showing that the bottom is falling out of the demand side of GDP at all levels of the economic system – OEM, wholesale, middleman, retail.

The cable biz news networks have sent their emissaries out to the landmark Times Square/Herald Square stores in NYC to try and manufacture a story about “Black Friday.”  Aside from the footage of the pre-dawn door openings at Macy’s – and at a few semi-ghetto area Walmarts around the country where fights broke out – there is no story.  I just saw a clip of some blonde bimbo from Fox Biz at the Times Square Toys R US store – it was very quiet in the background aside from some curiosity seekers.

So why not cover up the truth by hiding the “canary in the coal mine” and blasting the price of gold?   That’s exactly what happened on Friday morning at 8:00 a.m. EST:

UntitledAs you can see from the graph to the left, the trading in gold during the Asian and early London hours was largely subdued. At 8:00 a.m. the Comex paper gold contract went into its now-familiar cliff-dive formation.  Bare in mind that this is probably one of the most quite, low-volume trading periods of the entire week, as Asia and the Middle East are in bed and London’s paper gold market is starting to doze off the weekend.   No one single other commodity  or market index exhibited any unusual trading patterns or volume when gold was smashed.  Even silver, after an initial “sympathy” sell-off, has held up remarkably well.  This was an intentional raid on the gold market.

Between 8:00 a.m. and 8:30 a.m., 19,595 contracts were traded, largely dumped into the market.  This is many multiples higher than the typical pre-Comex floor open volume. Make no mistake, any seller looking to move, 1.96 million ounces of paper gold – approximately 58 tonnes – would wait for the periods of time when the there’s is a lot more volume in order to mask the amount of paper he needs to sell AND to maximize the sale proceeds.

The sell operation put into motion did not have the slightest intent to maximize proceeds – it was sheer shock and awe.  Interestingly, GOFO/lease rates in London are exhibiting the signs of increasing “stress” on the demand for physical gold deliveries.  The GOFO rates posted this morning were negative out to three months and the rates for 1 week and 1 month had moved from -.30/-.20 to -.35/-.25, respectively.   This means that any entity looking to borrow gold collateralized by a cash was willing to pay a higher rate to do so today than last week.

Interestingly the mining stocks seem to be looking “through” the extreme price suppression of the price of gold and have recently been diverging from the latest take-down:

Only time will tell if this positive divergence between the mining stocks and the price of gold is aUntitled harbinger of a big move higher in the price of gold.  A lot of contrarian style analysts are starting to call for a big move up in the price of gold:  Gold/Gold Stocks and Get Ready For a Year-End Gold Rally, for instance.

I believe that as it becomes more apparent to a wider audience that the U.S. economy is collapsing, big investors will be forced to dump their hideously overpriced stocks and find a hiding place, away from the fraud-infested paper assets.  That hiding place will be physical gold.

Gold (Silver) Is The Most Manipulated Market In History

Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economy, , , , ,

Our fractional reserve financial system is just a gigantic Ponzi scheme. It can only survive as long as it expands, which is to say, as long as new debt is flushed through the system to finance old debt. But like all Ponzi schemes, the larger it grows the more unstable it becomes. Eventually, it collapses of its own weight.  -James Sinclair in 2009

The western Central Bank/bullion bank paper gold manipulators have become obvious. The reason is that the there is nothing stopping them from manipulating the market. Eventually the physical demand from Asia will undermine their paper gold manipulation activities, but big buyers of physical who demand delivery have no reason to stop the price capping, obviously.

James Turk discussed the various factors driving the manipulation in a King World News interview. I’ve created a graphic to illustrate the manipulation of the gold market as it occurred from Sunday into Monday:

This rally in the precious metals was the result of investors moving out of currencies to a safe-haven. It was an expected and natural reaction after the Paris attacks. Then came the unnatural, second and completely different precious metals market. Gold and silver ran into a solid brick wall when London opened. The difference between the way gold and silver traded in Asia and what happened in London was as stark as the difference between night and day.

Are we to believe that in striking contrast to what we saw in Asia, there were no safe-haven buyers in Europe?

The reality is that the central planners were out in full force with their market interventions in London, selling persistently and using their algorithms to prevent gold and silver from climbing any higher.

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The price of gold jumped at the open of Globex trading on Sunday evening. This would be expected after a string of bad economic and earnings reports littered the news wires late Friday. And then, of course, the event in Paris. But as you can see, after Asia was done feeding on the cheap gold provided to them from the fierce manipulation last week that drove the price of gold back under $1100, the typical Asia closed/London opens sell-off began.

The massive manipulation has taken on “shock and awe” proportions.  The fact that is has become so blatant and extreme reflects the growing sense of desperation by the elitists to keep the entire western financial/economic system from collapsing.

If gold were allowed to trade free from the control imposed using western paper derivatives, the price would shoot higher and send the warning to everyone that the system is on the verge of collapse.

Several friends and colleagues recently have expressed a high degree of frustration and have asked me when I thought the suppression of gold would end.  I point out them, and I believe correctly so, the the criminals looting our system have no choice but to use any means at their disposal in their attempt to keep gold from moving higher and to keep the stock market aloft.

They have no choice.   A falling price of gold and a rising stock market are the only cover stories they have left in their cabalistic effort to hide the absurd lies which belie the flood of propaganda about the economy, inflation and unemployment.

But at some point their ability to keep the wheels on the fraud that is the United States is going to fail.  Every Ponzi scheme in history eventually collapses.  It’s impossible to predict when this will occur.  I do believe that there is a growing sense of awareness among the population that something is wrong.  This is reflected in the fact that US Mint gold coin sales hit a 29-year high in the third quarter this year.   For those wallow about in the cesspool of blind hope and have not prepared for what’s coming, their lives will be shattered.

Gold Withdrawals On The Shanghai Gold Exchange At A New Record High

Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economy, , , ,

For the week ending November 6, gold withdrawals from the SGE were 44.97 tonnes.  This put the YTD total withdrawals at 2,210 tonnes.  Gold withdrawals YTD from the SGE are running 29% higher than last year and 20% higher than 2013, which was a record year for withdrawals:

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Smaugld.com has compiled an excellent summary of the gold withdrawal statistics on the SGE plus some data on Central Bank holdings globally. You can read his post here: China and Gold.

China’s “consumption” of gold this year is on track to exceed the total amount of gold produced this year by mines globally.  India is on track to import close to 50% of world gold production this year.  Russia adds to its Central Bank gold holdings every month.  In June alone it added 800,000 ozs, over 23 tonnes.

On the other hand, paper manipulation of all of the markets by western Central Banks – specifically the S&P 500 and gold by the Federal Reserve – is starting to reach an insane extreme.  Today was a prime example as the S&P 500 futures spent most of the overnight session starting Sunday evening down 8-12 points.  Gold was up $12 most of the night.

As the U.S. stock market opened, gold began to get hit and the S&P 500 popped from down 8 into positive territory.  This was after extremely negative economic and earnings reports were released.  Then, as gold faded back to Friday’s closing levels, around 1:30 p.m. EST the S&P went parabolic, rising 30 points on absolutely no news or reported events that would have possibly triggered a sudden surge like this.

As it so happens, on a preliminary basis, it looks like 11,215 gold contracts were added to the Comex futures open interest tally.  This is 1.12 million paper ounces, or 74x more paper gold than the amount of gold reported to be available for delivery on the Comex.  The total paper gold to deliverable gold (as reported) is 290:1.

Given that the appetite for gold from the east exceeds the amount of gold produced to feed that appetite on a “hand-to-mouth” basis, we can only speculate as to the sources being tapped by the BIS/Fed/Bank of England/ECB to feed the gold consuming beast.

What I will say with 100% certainty is that if you want to own gold but do not have possession of it – or at least have it safekept with an extremely trustworthy custodian – you will probably never have a chance to hold that gold in your hand.  It  is gone and it if it’s not gone by now, it will be gone by the time you understand the reasons why it is gone.

The only question now in my mind is how far will the bullion banks have to stretch the paper game in order to keep the price contained and the interest from the hoi polloi in gold subdued.   If the entities holding the long positions in Comex paper do not hold the paper short-sellers accountable, what’s to stop them from taking that 290:1 up to 500:1 if they have to?

The insane degree of intervention in the markets reflects sheer desperation by the manipulators to keep the wheels on the system.  When the intervention fails, the reaction by the markets will be spectacular to watch.

SoT – Jeff Brown From Beijing: The Rise Of China And The Collapse Of The West

Financial Markets, U.S. Economy, , , ,

“The Americans are very good at using future money – the Chinese are good at saving.”  – Alibaba founder, Jack Ma at a UN meeting led by Chinese President, Xi Jinping

In China gold is money.  Every bank in China sells gold and silver right at the teller window. The savings rate of the Chinese population is 50% and the favored store of wealth is gold held in bank safety deposit boxes.  In fact, Jeff Brown quickly discovered after his first gold purchase that every safety deposit in Beijing was taken.

When you go into a bank here they hand out brochures that explain the Shanghai Gold Exchange to the people.  If you buy your gold through the Shanghai Gold Exchange you are exempt from the value-added tax.  –  Jeff Brown in Beijing, Shadow of Truth

The western media propaganda machine has inundated the airwaves with countless misleading and false reports about the Chinese economy.

It’s so surreal to hear about Armageddon and implosion [in China] because of the stock market.  That affects maybe 6% of the population that is invested in the stock market here…outside of the stock market correction things are just thriving over here…the manufacturing economy is down but the service economy booming here  – Jeff Brown, Shadow of Truth

Although the manufacturing sector of the economy in China has slowed down considerably, it’s still producing economy growth.  However, the service economy is exploding in ways that is not reported at all by the western media.  Furthermore, the manufacturing output slowdown has been caused by a dramatic decline in exports, which reflects the extent of the economic contraction occurring in Europe and the United States, China’s two largest export markets.

With regard to China unloading $200 billion recently in U.S. Treasuries, the western media has once again promoted highly misleading reports that China was dumping to raise liquidity in order to support the yuan.  But conveniently overlooked by everyone in the west is the fact that China committed and recently funded $150 billion for the Asian Infrastructure Investment bank ($50 billion) and $100 billion for the new BRICS bank.

And lets put this in perspective.   China is sitting on approximately $3.4 trillion in foreign exchange reserves, $1 trillion of which is Treasuries.  It was only a matter of time before China decided to diversify away from the U.S. dollar component of its FX reserves. Furthermore, contrast this the paltry $30 billion in foreign exchange reserves of the United States.

They were very upset when the United States snuffed China from putting the RMB into the IMF Special Drawing Rights you could just “feel” the anger over here among the leadership.  That’s when they announced that bogus amount of PBoC gold holdings and then a week later they came out and devalued the Renminbi.  – Jeff Brown, Shadow of Truth

Jeff Brown in Beijing provided us with an absolutely fascinating, must-hear perspective of the incredible proliferation of the middle class in China and the booming local economies all throughout the country.

“There’s so much going on that is not reported in the west that it’s unreal” – Jeff Brown, Shadow of Truth

Please visit Jeff’s website 44days.net and find his articles on the link to his blog: LINK

From Dystopia To Armegeddon

Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economy, , , , , ,

When the going gets weird, the weird turn pro.  – Hunter S. Thompson

I mentioned the news reports of fist-fights breaking out at traffic intersections in Denver. Then yesterday I hear two different news reports of random gun shots.  One of shots fired into someone’s house in a not so great part of Denver (Aurora).  The second report of bullets flying across one of Denver’s busiest highways and hitting cars.  Then I learn last night that bullets flying into cars driving on highways in Arizona have become part of everyone’s daily routine.

We’re sliding into the “Mad Max” scenario which many of us for a long time have envisioned eventually hitting this country.  I would have thought that this environment would have started engulfing this country in 2008.  But the Government pulled what appeared to be a rabbit out of its hat which enabled it to kick “Mad Max” down the road for a bit.  That “rabbit” by the way, while preventing an all out collapse and actually making life better for the people closest to the money spigot, was nothing more than a disguise designed to help the elitists confiscate even more wealth from the middle class.

The population’s hatred for the Government grows stronger by the day.  The popularity of Trump’s candidacy for President is a reflection of this intensifying despise.   A growing segment of the population cheers harder for Trump everyday as he lashes out with insults at the politicians everyone now hates.  Let’s be honest, Trump is at least as corrupt as the career politicians he’s humorously defacing.  He would be a horrible President.  Of course, so would every other candidate on the roster for both Parties.

Perhaps the best – yet least understood – evidence of the darkness which is slowly engulfing the the U.S. is the disappearance of physical precious metals from the global financial system.   Gold and silver is being removed hand-over-fist from public view.  Most of the gold is being moved from west to east, where it’s being removed from the bullion exchanges by the 10’s of tonnes on a daily basis.  For instance, the Hong Kong Metals Exchange just had its largest daily withdrawal – 19.7 tonnes – in its history.   Roughly 100 tonnes per week is now being removed from the Shanghai Gold Exchange.  This is Gresham’s Law in action, folks.

We already know about the growing shortages for minted silver products around the world, especially in the U.S.   And the disappearance of gold from the Comex bank vaults is nothing short of stunning.  The ratio of fraudulent paper gold to deliverable physical gold hit 229:1 to yesterday.  To say this is “silly” is an insult to the word “silly.”  This reflects and epitomizes the extreme degree of corruption, fraud and theft which is burying the United States.

I was exchanging emails this morning with GATA’s Bill “Midas” Murphy.  We were marveling at just how extreme and blatant the manipulation of the precious metals market has become.  I find it beyond amusing that mainstream financial media – which rolls out charts of stocks and select commodities all day long – has failed to put on display the chart that shows that gold gets hit 90% of the time only when the Comex floor trading is open.  Funny non-coincidence, that.

I suggested to Bill that something really bad is going to hit our system:

Think about the manipulation of the metals market that occurred just before the Lehman, AIG/Goldman collapses. They took silver from $21 in March that year to $7 by late October.

Now think about how much more brutal this manipulation is both in the context both of the intensity and the disappearance of physical metal from the system.

I’d estimate that the manipulation now is probably 5x worse and more blatant than in 2008. Which means whatever is going to hit the system will be at least 5x worse than 2008.

I know most people who understand what is going on would like to see a collapse and thorough flush of the system.  Unfortunately, the dystopic behavior starting to show up in the general population will be met with brutal force by the near-totalitarian U.S. Government in an attempt to control it.   The inevitable systemic collapse will enable the Government to impose totalitarian control on the country to a degree that would be heartily admired by history’s despots.

It’s going to start to get really weird in this country (as if it has gotten weird enough already)…

Something Is Percolating In The Gold Market

Financial Markets, Gold, Market Manipulation, Precious Metals, , , ,

Note:  The junior mining stock featured below is now up 11% since I re-published the updated version.  Technically it’s getting ready to break out.  The junior mining stock I have it paired with is an insanely undervalued “prospect generator/royalty” company.  As the price of gold continues to move higher, both of these stocks will continue to outperform the market.

A longtime friend/colleague of mine sent me a note tonight in which he said he thought something significant might be coming to light about gold in the next week or two.  There’s certainly some unusual behavior on the Comex, with Goldman taking delivery of 98,300 ounces last week (2.8 tonnes), the amount of gold cleared on the LBMA at the a.m. fix spiked up from an average of about 100,000 ozs per day to over 150,000 ounces, the Shanghai Gold Exchange saw the 4th largest withdrawal of gold in its history and the premiums on both physical gold and silver rose considerably.

It’s anyone’s guess what might be going on, but China is certainly accumulating an increasing amount of the Wall Street Journal’s “Pet Rock.”  And the Chinese seem to be unloading a massive amount of dollars/Treasuries.

If you think gold is getting ready for a big move, you should take some capital and buy some high quality junior mining stocks.  I only evaluate and invest in juniors that have several characteristics:  1) a 43-101 resource report demonstrating a significant deposit of gold/silver (or at least a lot of drill holes with “strikes” on a property that is situated in area with surrounding mines;  2) plenty of liquidity; 3) low-risk jurisdiction; 4) management owns a decent amount of stock; 5) ideally, but not a definitive requirement, the stock has a large cap miner with a significant amount of equity or a JV partner.

This stock has all five objectives plus it has significantly outperformed the GDXJ since Jan 1 – click to enlarge:

UntitledA major gold mining company recently bought 50% of stock this Company issued to raise capital in order to advance its projects.  I recently updated my research report on this company, which you can access here:

DE-RISKED JUNIOR MINER

I’ve added a technical analysis supplement to the report on this stock, which was provided to me courtesy the DenaliGuide’s Summit blog, which accompanies access to a mining stock and stock market technical analysis subscription service. I highly recommend both.

The report on the stock above is available individually for $30 or packaged together with another one of my favorite, highly undervalued junior mining stocks for $45 (for two reports):    TWO REPORT SPECIAL  – Click on the image:

TwoMiningStockReports