Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1219.00 down $12.60 (comex closing time)
Silver: $16.75 down 11 cents (comex closing time)
In the access market 5:15 pm
Gold $1219.50
silver $16.79
Gold/silver trading: see kitco charts on right side of the commentary.
Today starts the big meeting by the Euro clan to see whether Greece will leave the EMU. We should know the true state of affairs by tomorrow night, although late in the day we have a serious of announcements. Needless to say the announcements had no substance.
Following is a brief outline on gold and silver comex figures for today:
The gold comex today had a poor delivery day, registering 0 notices served for 0 oz. Silver comex registered 0 notices for nil oz .
Three months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 254.80 tonnes for a loss of 48 tonnes over that period.
In silver, the open interest rose by 800 contracts despite Tuesday’s silver price being down by 21 cents. The total silver OI continues to remain relatively high with today’s reading at 168,146 contracts. The bankers are not happy campers tonight with respect to the high OI in silver.
We had 0 notices filed for nil oz
In gold we had another surprisingly fall in OI as gold was down $9.20 yesterday. The total comex gold OI rests tonight at 393,230 for a loss of 1,195 contracts. Today we had 0 notices served upon for nil oz.
Today, we had no changes in gold inventory at the GLD/Inventory at 773.31 tonnes
In silver, /SLV no change in of silver inventory to the SLV/Inventory 320.327
We have a few important stories to bring to your attention today…
Let’s head immediately to see the major data points for today
.
First: GOFO rates: the crooks are no longer reporting.
Let us now head over to the comex and assess trading over there today.
Here are today’s comex results:
The total gold comex open interest fell by another 1,195 contracts today from 394,447 down to 393,230 as gold was down by $9.20 yesterday (at the comex close). We are now in the big delivery month of the active February contract and here the OI fell by 17 contracts from 675 down to 658. We had 0 contracts served upon yesterday. Thus we lost 17 contracts or 1,700 oz will not stand for delivery for the February contract. The next contract month of March saw it’s OI fall by 46 contracts down to 1266. The next big active delivery month is April and here the OI fell by 2180 contracts down to 267,480. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was the worst we have ever seen at 45,930. The confirmed volume yesterday ( which includes the volume during regular business hours + access market sales the previous day) was awful at 105,016 contracts even with much help from the HFT boys. Today we had 0 notices filed for nil oz.
And now for the wild silver comex results. Silver OI surprisingly rose by exactly 800 contracts from 167,346 up to 168,146 despite the fact that silver was down by 21 cents yesterday. The bankers were not able to shake any silver leaves from the silver tree and thus the reason for continuous raids by the bankers. I guess the CME needs to resort to another silver margin hike as this would be the only way to shake some longs to depart. We are now in the non active contract month of February and here the OI fell by 0 contracts remaining at 20. We had 0 notices filed yesterday so we neither gained nor lost any silver contracts standing for delivery in this February contract month. The next big active contract month is March and here the OI fell by only 3,110 contracts down to 81,694. The estimated volume today was awful at 19,820 contracts (just comex sales during regular business hours). The confirmed volume yesterday was excellent (regular plus access market) at 51,440 contracts. We had 0 notices filed for nil oz today.
February initial standings
Feb 11.2015
Gold
Ounces
Withdrawals from Dealers Inventory in oz
nil oz
Withdrawals from Customer Inventory in oz
40,705.52 oz kilobars(Scotia,Brinks,Manfra)
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
162,175.077 oz (HSBC,Scotia and includes 2,000 kilobars)
No of oz served (contracts) today
0 contracts (nil oz)
No of oz to be served (notices)
658 contracts (65,800 oz)
Total monthly oz gold served (contracts) so far this month
549 contracts(54,900 oz)
Total accumulative withdrawals of gold from the Dealers inventory this month
Total accumulative withdrawal of gold from the Customer inventory this month
148,004.0 oz
Today, we had 0 dealer transactions
we had 0 dealer withdrawals:
total dealer withdrawal: nil oz
we had 0 dealer deposit:
total dealer deposit: nil oz
we had 3 customer withdrawals
i) Out of Scotia: 40,126.87 oz
ii) Out of Manfra; 353.65 oz (11 kilobars)_
iii) Out of Brinks: 225.000 oz???? not divisible by 32.15 oz
total customer withdrawal: 40,705.52 oz
we had 2 customer deposits:
i) Into HSBC: 97,875.077 oz
ii) Into Scotia: 64,300.000 oz (2000 kilobars??)
total customer deposits; 162,175.077 oz
We had 0 adjustments
Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices were stopped (received) by JPMorgan customer account.
To calculate the total number of gold ounces standing for the December contract month, we take the total number of notices filed for the month (549) x 100 oz or 54,900 oz , to which we add the difference between the OI for the front month of February (658 contracts) minus the number of notices served today x 100 oz (0 contracts) x 100 oz = 120,700 oz, the amount of gold oz standing for the February contract month.( 3.754 tonnes)
Thus the initial standings:
549 (notices filed for the month x( 100 oz) or 54,900 oz + { 658 (OI for the front month of Feb)- 0 (number of notices served upon today) x 100 oz per contract} = 120,700 oz total number of ounces standing for the February contract month. (3.754 tonnes)
we lost 17 contracts or 1700 oz will not stand in this February contract month.
Total dealer inventory: 804,854.509 oz or 25.03 tonnes
Total gold inventory (dealer and customer) = 8.191 million oz. (254.77) tonnes)
Several weeks ago we had total gold inventory of 303 tonnes, so during this short time period 48 tonnes have been net transferred out. However I believe that the gold that enters the gold comex is not real. I cannot see continual additions of strictly kilobars.
end
And now for silver
February silver: initial standings
feb 11 2015:
Silver
Ounces
Withdrawals from Dealers Inventory
nil oz
Withdrawals from Customer Inventory
361,042.467 oz (Delaware, CNT)
Deposits to the Dealer Inventory
nil
Deposits to the Customer Inventory
nil
No of oz served (contracts)
0 contracts (nil oz)
No of oz to be served (notices)
20 contracts (100,000 oz)
Total monthly oz silver served (contracts)
381 contracts (1,905,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal of silver from the Customer inventory this month
2,614,456.0 oz
Today, we had 0 deposit into the dealer account:
total dealer deposit: nil oz
we had 0 dealer withdrawal:
total dealer withdrawal: nil oz
We had 0 customer deposits:
total customer deposit nil oz
We had 2 customer withdrawals:
i) Out of Delaware: 332,714.847 oz
ii) Out of CNT: 28,327.62 oz
total customer withdrawal: 361,042.467 oz
we had 1 adjustment
i) Out of Delaware: 26,321.201 oz was adjusted out of the dealer and this landed into the customer account of Delaware;
Total dealer inventory: 67.864 million oz
Total of all silver inventory (dealer and customer) 176.208 million oz
.
The total number of notices filed today is represented by 0 contracts for 25,000 oz. To calculate the number of silver ounces that will stand for delivery in February, we take the total number of notices filed for the month (381) x 5,000 oz = 1,905,000 oz to which we add the difference between the OI for the front month of February (20)- the number of notices served upon today (0) x 5,000 oz per contract = 2,005,000 oz, the number of silver oz standing for the February contract month
Initial standings for silver for the February contract month:
381 contracts x 5000 oz= 1,905,000 oz + (20) OI for the front month – (0) number of notices served upon x 5000 oz per contract = 2,005,000 oz, the number of silver ounces standing.
we neither gained nor lost any silver ounces standing in this February contract month.
for those wishing to see the rest of data today see:
http://www.harveyorgan.wordpress.com or http://www.harveyorganblog.com
end
The two ETF’s that I follow are the GLD and SLV. You must be very careful in trading these vehicles as these funds do not have any beneficial gold or silver behind them. They probably have only paper claims and when the dust settles, on a collapse, there will be countless class action lawsuits trying to recover your lost investment.
There is now evidence that the GLD and SLV are paper settling on the comex.
***I do not think that the GLD will head to zero as we still have some GLD shareholders who think that gold is the right vehicle to be in even though they do not understand the difference between paper gold and physical gold. I can visualize demand coming to the buyers side:
i) demand from paper gold shareholders
ii) demand from the bankers who then redeem for gold to send this gold onto China
vs no sellers of GLD paper.
And now the Gold inventory at the GLD:
Feb 11.no change in gold inventory at the GLD/Inventory 773.31 tonnes
Feb 10 no change in gold inventory at the GLD/inventory 773.31 tonnes
Feb 9 no change in gold inventory at the GLD/Inventory 773.31 tonnes
feb 6/ no change in gold inventory tonight/inventory 773.31 tonnes
feb 5. we had another addition of 5.38 tonnes of gold to the GLD/Inventory tonight at 773.31 tonnes
Feb 4/2015; we had another addition of 2.99 tonnes added to the GLD inventory/Inventory tonight 767.93
Feb 3.2015: today a withdrawal of 1.79 tonnes of gold inventory removed from the GLD/Inventory at 764.94
feb 2/ a huge addition of 8.36 tonnes of “paper” gold inventory/Inventory tonight at 766.73 tonnes
jan 30. we had no change in gold inventory/Inventory at 758/37 tonnes
Jan 29/we had an addition of 5.67 tonnes of gold inventory at the GLD/Inventory at 758.37 tonnes
Jan 28/no changes in gold inventory at the GLD/Inventory at 952.44 tonnes
Jan 27.we had a monstrous “paper” addition of 9.26 tonnes of gold into the GLD tonight/Inventory at 952.44 tonnes
Feb 11/2015 /no change in gold inventory at the GLD/
inventory: 773.31 tonnes.
The registered vaults at the GLD will eventually become a crime scene as real physical gold departs for eastern shores leaving behind paper obligations to the remaining shareholders. There is no doubt in my mind that GLD has nowhere near the gold that say they have and this will eventually lead to the default at the LBMA and then onto the comex in a heartbeat (same banks).
GLD : 771.31 tonnes.
end
And now for silver (SLV):
Feb 11 no change in silver inventory at the SLV/inventory at 320.327 million oz
Feb 10 no change in silver inventory at the SLV/inventory at 320.327 million oz
Feb 9 no change in silver inventory/SLV inventory at 320.327 million oz
Feb 6 no change in silver inventory/SLV’s silver inventory at 320.327 million oz.
Feb 5.we had no change in silver inventory/320.327 million oz/
Feb 4/we had a small withdrawal of 136,000 oz of silver from the SLV vaults/Inventory/320.327 million oz
feb 3.2015: we had a good addition of 1.149 million oz of silver inventory/inventory 320.463 million oz
Feb 2 no change in silver inventory at the SLV/inventory at 319.314
million oz.
jan 30 no change in silver inventory at the SLV/inventory at 319.314
million oz
Jan 29/no change in silver inventory/SLV inventory at 319.314 million oz
Jan 28/no changes in silver inventory/SLV inventory at 319.314 million oz
Jan 27/no change in silver inventory/SLV inventory at 319.314 million oz
feb 11/2015 we had no change in silver inventory/
SLV inventory registers: 320.327 million oz
end
And now for our premiums to NAV for the funds I follow:
Note: Sprott silver fund now for the first time into the negative to NAV
Sprott and Central Fund of Canada.
(both of these funds have 100% physical metal behind them and unencumbered and I can vouch for that)
1. Central Fund of Canada: traded at Negative 7.2% percent to NAV in usa funds and Negative 7.1 % to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 61.1%
Percentage of fund in silver:38.4%
cash .5%
( feb11/2015)
2. Sprott silver fund (PSLV): Premium to NAV rises to + 2.90%!!!!! NAV (Feb 11/2015)
3. Sprott gold fund (PHYS): premium to NAV falls to +.07% to NAV(feb 11 /2015)
Note: Sprott silver trust back into positive territory at +2.83%.
Sprott physical gold trust is back into positive territory at +.07%
Central fund of Canada’s is still in jail.
end
And now for your most important physical stories on gold and silver today:
Early gold trading from Europe early Wednesday morning:
(courtesy Mark O’Byrne)
Minsk Summit Highlights A Shaky NATO Union – Russia Is Far From Isolated
By GoldCore Research February 11, 2015 0 Comments
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- Merkel and Hollande to attend peace talks in Belarus to resolve Ukraine’s civil war today
- US and UK not invited
- Germany and US present united front but tensions ripple under the surface
- Foreign Minister of Greece, Nikolaos Kotzias, to meet his Russian counterpart Sergei Lavrov today as the crucial Eurogroup of finance ministers meet to determine the fate of Greece and the Euro
- Russia negotiates free-trade agreement with Egypt. Cyprus permits Russia to use ports and airstrips for humanitarian and emergency purposes
The leaders of Russia, Germany, France and Ukraine will meet in the Belarusian capital of Minsk today in a bid to resolve Ukraine’s brutal civil war.
The meeting, which the Russia Today news agency describe as a Franco-German peace initiative, will not include the leaders of the US or Britain.
RT suggests that the talks were triggered by John Kerry’s visit to Kiev where he announced the possibility of the US arming Ukraine government troops adding that “Europe is reluctant to have a full-blown war on its doorstep.”
Preliminary talks between Merkel, Hollande and Putin in Moscow on Friday were held behind closed doors. On Monday Merkel met with Obama in Washington. While they tried to present a united front the subtext of their statements and their body language gave a different impression.
US politicians have been clamouring for Obama to provide weapons to the Ukrainian government. But Merkel was unequivocal in her response to such proposals. “I don’t see a military solution” she said adding that sending arms to the Ukraine government would be “not just highly risky but counterproductive.”
Obama insisted that the arms option was under “ongoing analysis” while at the same time agreeing with Merkel that, for now, the civil war would not be resolved by military means. He insisted that Russia’s isolation would worsen if it failed to change course.
Meanwhile, geo-politics will play as great a role in today’s Eurogroup meeting of finance ministers as economic considerations.
The Greek government have sent a clear message to the EU when the Greek Kathimerini news agency reported on Monday,
“Greece’s Foreign Minister Nikolaos Kotzias is to visit Moscow on Wednesday to hold talks with his Russian counterpart Sergei Lavrov, Russia’s Interfax and TASS news agencies reported on Monday citing a source in the Russian Foreign Ministry.”
Reuters reported Greek defence minister, Panos Kammenos as saying,
“What we want is a deal. But if there is no deal – hopefully (there will be) – and if we see that Germany remains rigid and wants to blow apart Europe, then we have the obligation to go to Plan B.”
“Plan B is to get funding from another source. It could the United States at best, it could be Russia, it could be China or other countries.”
That Mr. Kotzias will be in Moscow today is telling.
At the same time, Cyprus have announced an agreement with Russia that will allow Russia’s military to use it’s ports and airstrips for humanitarian and emergency purposes.
“We want to avoid further deterioration in relations between Russia and Europe,” said President Anastasiades. “Cyprus and Russia enjoy traditionally good relations and that is not going to change,” he added.
It was reported yesterday that Egypt will join the Eurasian Economic Union, a free trade group modelled on the EU which is led by Russia. Clearly Russia is not as isolated as Western powers would wish.
With the leaders of two key NATO states initiating diplomacy with Russia independently of the US and the UK and another minor NATO player, Greece, pivoting East-ward to Russia to strengthen its independence from the EU it is clear that the NATO “alliance” is not what it once was.
If diplomacy should fail in Minsk today it would pave the way for the US to start arming the Ukraine government. This would lead to an acceleration of the war and it’s morphing into a proxy war to which Germany and France are opposed.
Coupled with the latent economic crisis in Europe – which will be exacerbated no matter what the outcome of today’s Eurogroup meeting – an acceleration in Ukraine’s civil war would be disastrous for the people of Europe.
The EU may fracture and with it the Euro currency. We continue to urge our clients to hold physical gold, the only currency without counterparty risk, in safe locations around the world.
GoldCore Guide: 7 Key Storage Must Haves
MARKET UPDATE
Today’s AM fix was USD 1,235.50, EUR 1,092.40 and GBP 807.73 per ounce.
Yesterday’s AM fix was USD 1,237.50, EUR 1,096.78 and GBP 812.97 per ounce.
Gold fell 0.54 percent or $6.70 and closed at $1,234.00 yesterday, while silver slipped 0.71 percent or $0.12 closing at $16.91.
Gold inched up on Wednesday in Asia as the dollar’s gains retreated and the market awaits a possible Greek exit from the eurozone. The county’s 240-billion-euro bailout expires on February 28th, most likely leaving the country bankrupt and at risk of a eurozone exit unless it can strike a deal with creditors. Today, Greek Finance Minister Yanis Varoufakis is meeting with European counterparts asking for a 10 billion-euro ($11.3 billion) bridge plan to stave off a funding crunch and allow Greece more time to renegotiate austerity terms with creditors.
Uncertainty over when the U.S. Fed will announce an interest rate hike is also limiting gold’s gains, however a Fed official mentioned June yesterday in the press.
A hike in interest rates by the Fed, which has maintained near zero rates since 2008 to boost the sluggish U.S. economy, could further strengthen the U.S. dollar and may dampen the demand for bullion, a non-interest-bearing asset.
The uncertainty over whether Vladimir Putin and Ukrainian President Petro Poroshenko can negotiate a lasting ceasefire in Minsk is another factor weighing on the bullion market.
Spot gold rose 0.3 percent to $1,237.70 an ounce in late trading in Singapore.
Gold in London was trading range bound $1,233.63 per ounce up 0.07 percent. Silver was last $16.95 up 0.30 percent and palladium $1,207.40 up 021%.
Breaking News and Updates Here
end
Another casualty of the gold/silver price manipulation:
(courtesy Reuters/GATA)
Low gold price causes Kinross to shelve expansion of African mine
Submitted by cpowell on Wed, 2015-02-11 01:28. Section: Daily Dispatches
Kinross Decides Not to Expand Tasiast Gold Mine in Africa
By Nicole Mordant
Reuters
Tuesday, February 10, 2015
VANCOUVER, British Columbia, Canada — Kinross Gold Corp. will not go ahead with a $1.6 billion expansion of its Tasiast mine in Africa’s northwest because of the weak gold price, the Toronto-based miner said today as it reported an unexpected fourth-quarter loss.
Although Kinross was in a strong cash position and project financing talks had gone well, the company was concerned about cash flow during the 35 months of construction if the gold price fell further, Kinross Chief Executive Paul Rollinson said. …
… For the remainder of the report:
http://www.reuters.com/article/2015/02/10/kinross-results-idUSL1N0VK32U2..
end
(courtesy Patrick Heller/Numismatic News/Liberty coins/GATA)
Patrick Heller: Gold wins 15-year asset race
Submitted by cpowell on Wed, 2015-02-11 01:18. Section: Daily Dispatches
8:20p ET Tuesday, February 10, 2015
Dear Friend of GATA and Gold:
Patrick Heller of Liberty Coin Service in Lansing, Michigan, reports in Numismatic News this week that gold has outperformed all major financial assets in the last 15 years, including the U.S. dollar, despite the dollar’s recent strength. Heller did not include gold and silver mining company shares in his list, but most of us wouldn’t feel so sour about things lately if the mining shares had performed any better than, say, the Indian rupee, down almost 84 percent against gold. Heller’s analysis is headlined “Gold Wins 15-Year Asset Race” and it’s posted at Numismatic News here:
http://www.numismaticnews.net/article/gold-wins-15-year-asset-race?et_mi…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
(courtesy Chris Powell/GATA)
In Canada too, clamor for the banks to get out of the governing business
Submitted by cpowell on Wed, 2015-02-11 03:32. Section: Daily Dispatches
10:53p ET Tuesday, February 10, 2015
Dear Friend of GATA and Gold:
What’s left of Canada’s Social Credit movement has brought a lawsuit challenging the operation of the country’s monetary and banking systems, and apparently the powers that be are having a hard time getting the lawsuit dismissed.
The lawsuit argues that the Canadian central bank’s enabling act authorizes the bank to create and lend money without interest to government agencies, bypassing the commercial banking system and all the income and advantages commercial banks extract from the central bank at the public’s expense, and that the central bank should start financing the government that way.
Reporting on the lawsuit at the Internet site of the Clifford Hugh Douglas Institute, which expounds Social Credit political and economic philosophy, M. Oliver Heydorn writes:
“The plaintiffs state that the Bank for International Settlements, the Financial Stability Forum, and the International Monetary Fund were all created with the cognizant intent of keeping poorer nations in their place, which has now expanded to all nations in that these financial institutions largely succeed in overriding governments and constitutional orders in countries such as Canada over which they exert financial control. The plaintiffs state that the meetings of the BIS and Financial Stability Board (successor of FSF), their minutes, their discussions, and their deliberations are secret and not available nor accountable to Parliament, the executive, nor the Canadian public, notwithstanding that Bank of Canada policies directly emanate from these meetings. These organizations are essentially private, foreign entities controlling Canada’s banking system and socio-economic policies.”
Insofar as the plaintiffs are seeking to assert the supremacy of democracy over central banking as it is currently practiced — largely in secret and without accountability — GATA has to be sympathetic, just as we must join the growing clamor in the United States to audit the Federal Reserve, which, far more than the Bank of Canada, distributes vast financial patronage and intervenes in markets largely in secret and without accountability.
While, as a practical matter, the Federal Reserve serves primarily the financial class,as a matter of law the Fed is very much a creation and part of the U.S. government, not a privately owned corporation, the latter being a misapprehension by many on our side arising from the Fed’s peculiar share structure.
Yes, commercial banks own shares in the Fed, but these shares don’t control the Fed’s management. Rather, the members of the Fed’s Board of Governors are nominated by the president and appointed by the Senate.
Besides, the financial class controls far more than the Federal Reserve. It controls most of the U.S. government. This is in part the political phenomenon of “regulatory capture.” But more so it is just the current manifestation of the old struggle between the producing and financial classes.
As the late New York Times editor James Reston wrote long ago, “All politics are based on the indifference of the majority.” Special interests take control of government because they are the most motivated, having the most lucrative stake in government operations. The public generally can’t be bothered to defend its own interests.
The public could reclaim the Fed for the public interest any time it wanted to do so by mobilizing its democratic institutions. Of course it would help if more Americans could read and write and if they spent more time on civic engagement than on sending text messages to each other about what they plan to watch on television when they’re done celebrating themselves on Facebook. But it could be done.
Money creation and distribution may be the oldest and most important political issue, since it defines democracy. In his “Cross of Gold” speech at the Democratic National Convention in Chicago in 1896 —
http://historymatters.gmu.edu/d/5354/
— William Jennings Bryan argued for the remonetization of silver to reflate the economy and subordinate Wall Street to democracy, putting it this way:
“Those who are opposed to this proposition tell us that the issue of paper money is a function of the bank and that the government ought to go out of the banking business. I stand with Jefferson rather than with them and tell them, as he did, that the issue of money is a function of the government and that the banks should go out of the governing business.”
Oh, well: Plus ca change, plus c’est la meme chose. It’s our turn to play a part in this struggle.
The Clifford Hugh Douglas Institute’s report on the lawsuit about the operation of the Bank of Canada is posted here:
http://www.socred.org/blogs/view/the-case-to-reinstate-the-bank-of-canad…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
For your enjoyment: Dr Paul Craig Roberts
(courtesy Dr Roberts/GATA)
Paul Craig Roberts – The World Is Now On The Cusp Of Total War
February 09, 2015
As the world grows increasingly concerned about the fighting in Ukraine, especially in the aftermath of a large bomb being detonated last night, today former U.S. Treasury official, Dr. Paul Craig Roberts, warned that the world is now on the cusp of total war.
By Dr. Paul Craig Roberts Former U.S. Treasury Official
February 9 (King World News) – At this time we do not know the outcome of the meeting in Moscow between Merkel, Hollande, and Putin.
The meeting with Putin was initiated by Merkel and Hollande, because they are disturbed by the aggressive position that Washington has taken toward Russia and are fearful that Washington is pushing Europe into a conflict that Europe does not want. However, Merkel and Hollande cannot resolve the NATO/EU/Ukraine situation unless Merkel and Hollande are willing to break with Washington’s foreign policy and assert the right as sovereign states to conduct their own foreign policy.
Putin-Merkel-Hollande Meeting
Unless Washington’s war-lust has finally driven Europeans to take control over their own fate, the most likely outcome of the Putin-Merkel-Hollande meeting will be more meetings that go nowhere. If Merkel and Hollande are not negotiating from a position of independence, one likely outcome after more meetings will be that Merkel and Hollande will say, in order to appease Washington, that they tried to reason with Putin but that Putin was unreasonable.
Based on Lavrov’s meeting in Munich with the Europeans, the hope for any sign of intelligence and independence in Europe seems misplaced. Russian diplomacy relied on European independence, but as Putin has acknowledged Europe has shown no independence from Washington. Putin has said that negotiating with vassals is pointless. Yet, Putin continues to negotiate with vassals.
French Oppose Washington
Perhaps Putin’s patience is finally paying off. There are reports that Germany and France oppose Washington’s plan to send weapons to Ukraine. French president Hollande now supports autonomy for the break-away republics in Ukraine. His predecessor, Sarkozy, said that Crimea chose Russia and we cannot blame them, and that the interests of Americans and Europeans diverge when it comes to Russia. Germany’s foreign minister says that Washington’s plan to arm Ukraine is risky and reckless. And on top of it all, Cyprus has offered Russia an air base.
We will see how Washington responds to the French statements that European interests with regard to Russia diverge from Washington’s. Washington does not recognize any valid interest except its own. Therefore, it has been fruitless for Russia to negotiate with Washington and Washington’s EU vassals. To come to an agreement with Washington has required Russia’s surrender to Washington’s terms. Russia must hand over Crimea and Russia’s warm water port, and Moscow must stand aside while the Russian people in eastern and southern Ukraine, the “break-away” provinces, are slaughtered. Russia must support the hostile regime in Kiev with loans, grants, and low gas prices.
That is the only deal Russia has been able to get from Washington, because the EU has supported Washington’s line. With French presidents reportedly now saying, “We are part of a common civilization with Russia,” Europe is on the road to independence.
False Flag Attack?
Can Europe stay on this road, or can Washington bring Germany and France back in line? A false flag attack could do it. Washington is a control freak, and the neoconservative ideology of US hegemony has made Washington even more of a control freak. Europe with an independent foreign policy means a great loss of control by Washington. If Washington retains or regains control, I see two clear options for Russia.
Bankrupt West
One is to disengage totally from the West. The West is a morally depraved and economically bankrupt entity. There is no reason for a decent country like Russia to wish to be integrated with the evil that is the West. Russia has the option of abandoning the dollar payments system and all financial relationships with the West.
By trying to be part of the West, Russia made a strategic error that endangered the independence of Russia. Russia found herself dependent on Western financial systems that gave Washington power over Moscow and allowed Washington to place economic sanctions on Russia.
It was Russia’s desire to be part of the West that made possible Washington’s sanctions and Washington’s propaganda against Russia. It was Russia’s desire to be accepted by the West that produced the weak Russian response to Washington’s audacious coup in Kiev. Washington is using Ukraine against Russia. After seizing control in Kiev, it is unlikely that Washington will accept a peaceful solution in which the “break-away” provinces are permitted to become autonomous republics of Ukraine.
Is negotiation with Washington possible when Washington only wants conflict?
Russia Can Destroy NATO
Russia’s other clear option is to destroy NATO by ceasing to sell energy resources to NATO members. The countries would choose energy over NATO membership.
Why should Russia empower its obvious enemies by meeting their energy needs? Russia could also encourage Greece, Italy, Spain, and Portugal to default on their loans and rely on Russia, China, and the BRICS Bank for financing. China holds a massive amount of dollars. Why not use them to break up Washington’s European empire?
Russia could also default on its loans to the West. Why should Russia pay an enemy that is trying to destroy her?
If Europe cannot gain its independence, at some point Russia will either have to surrender to Washington or demonstrate decisive action that causes Washington’s European vassal states to understand the cost of vassalage to Washington and decide to abandon Washington in the interest of their own survival.
Russia Can Forget About The West
Alternatively, Russia can forget about the West and integrate with China and the East. Considering Washington’s hegemonic posture, there is no counterparty for Russia’s diplomacy.
Predictions are difficult, because policies can have unintended consequences and produce black swan events. For example, the Islamic State is the unintended consequence of Washington’s wars in the Muslim world. The Islamic State was created out of the Islamist forces that Washington assembled against Gaddafi in Libya. These forces were then sent to overthrow Assad in Syria. As Muslims flocked to ISIS’s banner and its military prowess grew, ISIS realized that it was a new and independent force consisting of radicalized Muslims.
Radicalized Muslims are tired of Western domination and control of Muslim lands. Out of ISIS’s self-awareness, a new state has been created, redrawing the Middle Eastern boundaries created by the British and French.
It is curious that Iran and Russia regard the Islamic State as a more dangerous enemy than Washington and are supporting Washington’s moves against the Islamic State. As the Islamic State is capable of disrupting Washington’s policy in the Middle East, Iran and Russia have an incentive to finance and arm the Islamic State. It is in Washington, not in the Islamic State, where Sauron resides and is gathering up the rings in order to control them all.
EU Driving Greece Into The Ground
In their attempts to negotiate with Europeans, Putin and Lavrov should notice the total unwillingness of the EU to negotiate with its own members. Right in front of our eyes we see Merkel and Hollande driving their fellow Greek EU compatriots into the ground.
The EU has told the new Greek government that the EU doesn’t care a whit about Greece and its people. The Europeans only care that they don’t get stuck with the cost of the bad loans the German and Dutch banks made to Greek governments in the past.
As I described in my book, The Failure of Laissez Faire Capitalism, one purpose of the “sovereign debt crisis” is to establish the principle that private lenders are not responsible for their bad judgment. Instead, the peoples of the country who were not parties to the loans are responsible. The EU is using the crisis not only to protect powerful private interests, but also to establish that over-indebted countries lose control of their fiscal affairs to the EU. In other words, the EU is using the crisis to centralize authority in order to destroy country sovereignty.
Washington Overthrowing Governments
As Washington and the EU do not respect the sovereignty of Greece, one of its own, why does the Russian government think that Washington and the EU respect the sovereignty of Russia or Ukraine? Or of India, Brazil and other South American countries, or China. Currently Washington is trying to overthrow the governments of Cuba, Venezuela, Ecuador, Bolivia, and Argentina.
Washington respects no one. Thus, talking to Washington is a waste of time. Is this a game Russia wants to play? ***ALSO JUST RELEASED: Marc Faber Unveils The Biggest Surprise For 2015 And The Greatest Danger Facing The World Today CLICK HERE.
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Gold miners are on the prowl looking for good gold assets:
(courtesy Bloomberg)
Gold miners are on the hunt for assets as prices climb
Submitted by cpowell on Wed, 2015-02-11 18:40. Section: Daily Dispatches
By Jesse Riseborough, Kevin Crowley, Thomas Biesheuvel
Bloomberg News
Wednesday, February 11, 2015
Gold producers with cash on hand are on the hunt for cheap mining assets as rising prices drive shares higher.
During a 12-year bull run that ended last year, about $30 billion in debt was racked up by companies that mine gold. Those that minimized borrowing then are in the best position now to scoop up mines from rivals with weaker balance sheets, said executives at the Investing in African Mining Indaba conference in South Africa, the biggest such gathering on the continent.
Already $2.7 billion in deals have been announced or completed this year within the industry, including Monday’s $1.1 billion offer for Rio Alto Mining Ltd. by Tahoe Resources Inc. It’s an early leg up on the $10.5 billion in deals last year. …
… For the remainder of the report:
http://www.bloomberg.com/news/articles/2015-02-11/gold-miners-on-the-hun…
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With negative interest rates, investors are now seeking gold”
(courtesy Bloomberg)
Swiss bank says investors favor gold amid charges on cash
Submitted by cpowell on Wed, 2015-02-11 18:37. Section: Daily Dispatches
By Giles Broom
Bloomberg News
Wednesday, February 11, 2015
GENEVA, Switzerland — Investors are buying more gold as an alternative to hold Swiss franc cash deposits, according Vontobel Holding AG, a Swiss bank and wealth manager.
“We keep noticing that gold is coming back into favor with investors,” Vontobel Chief Executive Officer Zeno Staub, 45, told reporters today after the Zurich-based company announced full-year earnings.
Concerns that Greece may abandon the euro and Ukraine may be headed for a wider conflict have spurred demand for haven assets. Gold has climbed 4.2 percent this year, even as the dollar strengthened on prospects of higher U.S. interest rates. Investors’ holdings in gold-backed funds are near the highest since October. …
… For the remainder of the report:
http://www.bloomberg.com/news/articles/2015-02-11/swiss-bank-says-invest..
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For those following Agnico eagle, they came in with a strong performance: (tonight’s release)
Agnico Eagle reports fourth quarter and full year 2014 results – Strong operational performance yields record annual production; Initial resource declared at Amaruq
Agnico Eagle Mines Limited18 minutes ago
(All amounts expressed in U.S. dollars unless otherwise noted)
Stock Symbol: AEM (NYSE and TSX)
TORONTO, Feb. 11, 2015 /PRNewswire/ – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) (“Agnico Eagle” or the “Company”) today reported a quarterly net loss of $21.3 million, or a net loss of $0.10 per share for the fourth quarter of 2014. This result includes a non-cash foreign currency translation loss on deferred tax liabilities of $20.3 million ($0.10 per share), various mark-to-market adjustment losses of $5.0 million ($0.02 per share), unrealized losses on financial instruments of $7.7 million ($0.04 per share), non-cash foreign currency translation losses of $7.0 million ($0.03 per share), non-cash stock option expense of $3.5 million ($0.02 per share) and non-recurring gains of $5.6 million ($0.03). Excluding these items would result in adjusted net income of $16.6 million ($0.08 per share) for the fourth quarter of 2014. In the fourth quarter of 2013, the Company reported a net loss of $780.3 million or a net loss of $4.49 per share, which included a $1.0 billion impairment loss.
Fourth quarter 2014 cash provided by operating activities was $164.0 million ($152.2 million before changes in non-cash components of working capital), this compares to cash provided by operating activities of $140.8 million in the fourth quarter of 2013 ($135.8 million before changes in non-cash components of working capital). The slight increase in cash flow before changes in working capital during the current period was largely due to higher production which more than offset lower realized gold and silver prices (down 10% and 23% respectively, period over period).
“Our operations continue to perform well, which allowed us to exceed both our production and cost guidance for the third year in a row. With projected year-over-year production growth of 12%, lower fuel costs and weaker local currencies anticipated in Canada, Mexico and Finland, we expect to have another strong year in 2015″, said Sean Boyd, President and Chief Executive Officer. “It should also be an exciting year on the exploration front, with drilling activities underway at most of our mines, and significant programs planned at our Amaruq project in Nunavut and El Barqueno project in Mexico. Given the strong potential to expand the initial 1.5 million ounce resource at Amaruq, and the recent positive permitting news at Meliadine, we expect to unlock additional value from our Nunavut platform in 2015″, added Mr. Boyd.
Fourth quarter, full year 2014 and recent highlights include:
Record annual gold production – Payable gold production 1 in 2014 was 1,429,288 ounces at total cash costs 2 per ounce on a by-product basis of $637, compared to guidance of 1,400,000 ounces at total cash costs per ounce on a by-product basis of $663. All-in sustaining costs 3 (“AISC”) for 2014 was $954 per ounce on a by-product basis, which is below the previous 2014 guidance of $990 per ounce on a by-product basis.
Record fourth quarter production – Payable production in Q4 2014 was 387,538 ounces of gold at total cash costs per ounce on a by-product basis of $662
2015 guidance maintained – Production for 2015 is expected to be approximately 1.6 million ounces of gold with total cash costs on a by-product basis of $610 to $630 per ounce. AISC are forecast to be approximately $880 to $900 per ounce
Year-over-year increase in reserves and resources – With the acquisition of Osisko Mining Corporation, reserves at year end 2014 were 20.0 million ounces compared to 16.9 million ounces at year end 2013. Measured and indicated resources and inferred resources also increased by approximately 56% and 33%, respectively, over the 2013 period
Continued focus on reserve quality and improved grades – Increased gold reserve grades at LaRonde (5.20 g/t versus 5.00 g/t), Kittila (4.93 g/t versus 4.64 g/t) and Pinos Altos (3.01 g/t versus 2.84 g/t)
Increased reserves, resources and positive permitting progress in Nunavut – Initial inferred resource of 1.5 million ounces (6.6 million tonnes grading 7.07 g/t gold) reported at Amaruq project. Meliadine reserves increased by approximately 500,000 ounces to 3.3 million ounces (at a grade of 7.44 g/t gold), and the Project Certificate setting out the terms on which the project can proceed is expected within the next two months
Proceeds from sale of Probe Mines shares used to reduce debt – In Q1 2015, $30 million was repaid on the credit line.
A quarterly dividend of $0.08 per share declared
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Today, Bill Holter tackles an extremely difficult topic
(courtesy Bill Holter/Miles Franklin)
How far is too far?.
As you know, I am in the camp that the West, led by the U.S. is and has been pushing for war. War to create more debt for the banks to skim from, and to retain/prolong the power of dollar hegemony. I also believe China is not looking for a war and neither is Mr. Putin and Russia. If they were, I believe there was enough provocation over one year ago with Syria and over the last year as sanction after sanction has been implemented.
In my opinion, Mr. Putin has been pushed just about as far as he will allow. The arming of Ukraine by NATO will cross the line and the strategy of encircling Russia is not acceptable. The data I have seen over the last 90 days leads me to believe something very big and very soon will come from Russia …and will not be “singular”, I believe what comes will be multi dimensional. In no particular order, and you decide the importance, I believe the response”s” from Russia will be nearly simultaneous.
First, there will be a financial response. This may include hacking our financial institutions, dumping Treasury bonds and dollars, purchasing and making calls on various commodity markets, buying and asking for delivery of both gold and silver amongst other disruptive strategies. Russia could also announce a “gold ruble” to stabilize their currency and economy, this might likely be followed by some sort of Chinese announcement? Geopolitically, we may hear of deals cut with the Germans and French. There may be further deals between the Swiss and Chinese or even other Western nations, we may also watch as Greece is given a deal and falls Eastward. Saudi Arabia will most likely also be of interest as they now have a new ruler. Will they continue the petro dollar status, or have “new” deals already been arranged during talks late last year with both Russia and China?
Militarily we could see Russia invade Ukraine outright or worse. Russia has had months to prepare and just last week mobilized over 100 mobile ICBM missile launchers. Their actions are not those of a nation readying to stand down. Please do not tell me that any of the above is impossible, with the financial backing of the Chinese, ANY and all of this is possible. A goal of fracturing NATO is quite logical in my estimation.
Now for the “crazy” part, but I believe to be a necessary part. We know that Edward Snowden has been a “guest” living in Russia for over one year. Do you believe he has been given “free rent”? Do you believe he has as “sensitive” information as we have been led to believe by Mr. Obama and others? Personally, I do…and maybe then some. If you take the above, financial, geopolitical and military pieces and put them together, only one piece is missing, “sentiment”. Sentiment of the American people! If Mr. Putin were somehow able to cut the populace’ natural patriotism out from under the current administration, there will be no “will” to fight. How could this be accomplished?
Let me put several “sentiment” pieces together and you decide if any of this makes sense. Do you remember back in December there was a blast of media attention given to “torture” at Gitmo and several names in the Bush administration came up? Did you know Senator Nelson from Florida has been pushing for several months very hard to get the 28 missing pages from the 9-11 report made public? These 28 pages allegedly name the Saudis as financiers of that sad day. What if some of the information Mr. Snowden has to offer is bigger than currently thought? Or separately, what if he has proof showing fraud of a massive nature? It could be proof of financial fraud, military fraud or even false flag evidence
