Gold $1255.00 up $3.10
Silver 17.41 DOWN 5 cent
In the access market 5:15 pm
Gold: 1258.00
Silver: 17.50
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
.
The Shanghai fix is at 10:15 pm est and 2:15 am est
The fix for London is at 5:30 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.
And now the fix recordings:
Shanghai morning fix OCT 13 (10:15 pm est last night): $ 1263.42
NY ACCESS PRICE: $1259.90 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1264.98
NY ACCESS PRICE: 1260.64 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!!
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London Fix: OCT 13: 5:30 am est: $1258.00 (NY: same time: $1258.40: 5:30AM)
London Second fix OCT 13: 10 am est: $1261.60 (NY same time: $1261.10 , 10 AM)
It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.
Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.
end
For comex gold:
41 NOTICES FILED FOR 4100 OZ
For silver:
for the Oct contract month: 0 notices for NIL oz.
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Let us have a look at the data for today
.
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In silver, the total open interest FELL by 1509 contracts DOWN to 185,960. The open interest FELL as the silver price was DOWN 1 cent in yesterday’s trading .In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .929 BILLION TO BE EXACT or 133% of annual global silver production (ex Russia &ex China).
In silver for October we had 0 notices served upon for nil oz
In gold, the total comex gold fell by 4,871 contracts with the FALL in price of gold( $3.90 yesterday) . The total gold OI stands at 495,457 contracts. The bankers have done a great job fleecing longs
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With respect to our two criminal funds, the GLD and the SLV:
GLD
TODAY WE HAD ANOTHER HUGE ADDITION TO THE GLD: A DEPOSIT OF 2.67 TONNES OF GOLD
Total gold inventory rests tonight at: 961.57 tonnes of gold
SLV
we had NO CHANGES at the SLV
THE SLV Inventory rests at: 361.147 million oz
.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver FELL by 1,509 contracts DOWN to 185,960 as the price of silver FELL by 1 cent with yesterday’s trading.The gold open interest FELL by 4871 contracts DOWN to 495,457 as the price of gold FELL $3.90 IN YESTERDAY’S TRADING.
(report Harvey).
2.a) The Shanghai and London gold fix report
(Harvey)
2 b) Gold/silver trading overnight Europe, Goldcore
(Mark O’Byrne/zerohedge
and in NY: Bloomberg
end
2c) Federal Reserve Bank of New York/earmarked gold removal
(Harvey)
3. ASIAN AFFAIRS
i)Late WEDNESDAY night/THURSDAY morning: Shanghai closed UP 2.84 POINTS OR 0.09%/ /Hang Sang closed DOWN 375.75 POINTS OR 1.61%. The Nikkei closed DOWN 65.76 POINTS OR 0.39% Australia’s all ordinaires CLOSED DOWN 0.71% /Chinese yuan (ONSHORE) closed DOWN at 6.7275/Oil ROSE to 50.30 dollars per barrel for WTI and 51.99 for Brent. Stocks in Europe: ALL IN THE RED Offshore yuan trades 6.7362 yuan to the dollar vs 6.7275 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS QUITE BIT AS MORE USA DOLLARS LEAVE CHINA’S SHORES
REPORT ON JAPAN SOUTH KOREA NORTH KOREA AND CHINA
3a)THAILAND/SOUTH KOREA
The much beloved King of Thailand has died. Prior to his death the Thai bhat currency and their stock market were plummeting. The king was the stable force behind Thailand. It sure looks like their central bank intervened today trying to cool things:
( zero hedge)
b) REPORT ON JAPAN
none today
c) REPORT ON CHINA
i)Chinese exports sink which causes the USA/Jpy cross to plunge! The yuan also plunged to 6.73 to the dollar.
( zero hedge)
ii)We have a new bubble in China: car sales !
( zero hedge)
4 EUROPEAN AFFAIRS
i)DEUTSCHE BANK/GERMANY
As I have mentioned to you in the past, Deutsche bank has an income problem coupled with a solvency issue and not a liquidity problem. To prove this, they have implemented a hiring freeze: the stock slides again.
( zero hedge)
ii)ENGLAND/EU
Just look at what the EU is seeking for a BREXIT divorce: 20 billion euros. England needs access to the EU but the EU needs England more with respect to their financial hub
( Mike Shedlock/Mishtalk)
iii)EU/
What a complete failure. One would have thought that savings rate would decline as consumers would spend more. Wrong! they are saving more because they are fearful of a global catastrophe.
(courtesy zero hedge)
iv DEUTSCHE BANK
Deutsche bank’s stock continues to slide accompanied by higher credit default swaps and yet BB states that there is nothing to see here..sure thing!@
( zero hedge)
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
i)The USA is joining Saudi Arabia directly with cruise missile strikes inside Yemen. This is not going to end well!
( zero hedge)
ii)This is also not going to end well: British pilots have been ordered to shoot down hostile (Russian jets) over Syria:
( zero hedge)
iii)Having already intervened in Yemen, this Friday, Obama will decide on what military action he will do in Syria:
( zero hedge)
6.GLOBAL ISSUES
How the Philippines has just snubbed the USA as they face eastward towards China for alliances. One by one, nations are abandoning the uSA.
( James Holbrooks/antiMedia.org)
7.OIL ISSUES
WTI plunges below $50 on another huge inventory build
( zero hedge)
8.EMERGING MARKETS
none today
9.PHYSICAL STORIES
i)Even mainstream is getting the idea that we have gold intervention by governments and bankers
( John Embry/Kingworldnews)
ii)All indicators suggest that inflation will rise. Gold will be the ultimate winner here
( Phoenix Research Capital/Graham Summers)
iii)A good indicator defining global growth (copper crashing): non existent
( zero hedge)
10.USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i)USA layoffs in Sept jump by 38%
( CNBC)
ii)Wells Fargo CEO retires immediately as the heat of the situation got to him
( zero hedge)
iii)This should give you an idea of how pension shortfalls can destroy towns or cities:
( zero hedge)
iv)The very popular hedge fund, Bridgewater, was evacuated yesterday after receiving a bomb threat
( zero hedge)
v)Import prices have now dropped for 26 straight months as both the uK and China are supplying the deflation.
( zero hedge)
Let us head over to the comex:
The total gold comex open interest FELL BY 4871 CONTRACTS to an OI level of 495,457 as the price of gold FELL by $3.90 with YESTERDAY’S trading.
We are in the delivery month is October and here the OI GAINED 40 contracts UP to 192. We had 3 notices filed yesterday so we gained another 43 contracts or 4300 additional oz will stand.
The next delivery month is November and here the OI FELL by 74 contracts DOWN to 2952 contracts. This level is extremely elevated as generally November is a very poor delivery month.The next contract month and the biggest of the year is December and here this month showed an decrease of 7,295 contracts down to 372,654.
Today we had 41 notices filed for 4100 oz of gold.
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And now for the wild silver comex results. Total silver OI FELL BY 1,509 contracts from 187,469 down to 185,960 as the price of silver rose to the tune of 1 cent yesterday. We are moving further from the all time record high for silver open interest set on Wednesday August 3: (224,540). The next non active delivery month is October and here the OI rose by 2 contracts up to 116. We had 0 notices filed yesterday so we gained 2 contracts or 10,000 additional oz will stand for delivery.The November contract month saw its OI remain constant at 341. The next major delivery month is December and here it FELL BY 2491 contracts DOWN to 150,857
VOLUMES:
Today the estimated volume was 152,214 contracts which is fair.
Yesterday, the confirmed volume was 155,069 which is also fair.
today we had 41 notices filed for GOLD:
INITIAL standings for OCTOBER
Oct 13.
Gold
Ounces
Withdrawals from Dealers Inventory in oz
NIL
Withdrawals from Customer Inventory in oz nil
2m089.75
Scotia
Manfra
65 kilobars
Deposits to the Dealer Inventory in oz
nil oz
Deposits to the Customer Inventory, in oz
32,921.620 oz
incl 1000 kilobars
Brinks
Scotia
No of oz served (contracts) today
41 notices
4100 oz
No of oz to be served (notices)
151 contracts
15,100
oz
Total monthly oz gold served (contracts) so far this month
7989 contracts
798,900 oz
24.849 tonnes
Total accumulative withdrawals of gold from the Dealers inventory this month
oz
Total accumulative withdrawal of gold from the Customer inventory this month
131,768.6 oz
Today we had 3 kilobar transactions
Today we had 0 deposit into the dealer:
total dealer deposits: nil oz
We had zero dealer withdrawals:
total dealer withdrawals: nil oz
.
We had 2 customer deposits;
i) into Brinks: 771.62 oz (real)
ii) into+Scotia: 32,150.0000 oz (1000 kilobars) suspect!
total customer deposits; 32,921.620 oz
We had 2 customer withdrawals (also suspect)
Out of Scotia: 1,929.000 oz (60 kilobars)
out of Manfr: 160.75 5 kilobars
total customer withdrawal: 2089.75 oz
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Total dealer inventor 2,447,936.0 or 76.14 tonnes
Total gold inventory (dealer and customer) =10,648,362.400. or 331.249 tonnes
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 331.229 tonnes for a gain of 28 tonnes over that period. Since August 8 we have lost 23 tonnes leaving the comex. However I am including kilobar transactions and they are very suspect at best.
For October:
Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued form their client or customer account. The total of all issuance by all participants equates to 41 contract of which 0 notices were stopped (received) by jPMorgan dealer and 31 notice(s) was (were) stopped received) by jPMorgan customer account.
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To calculate the initial total number of gold ounces standing for the Oct contract month, we take the total number of notices filed so far for the month (7989) x 100 oz or 798,900 oz, to which we add the difference between the open interest for the front month of OCT (192 contracts) minus the number of notices served upon today (41) x 100 oz per contract equals 814,000 oz, the number of ounces standing in this NON active month of September.
Thus the INITIAL standings for gold for the SEPT contract month:
No of notices served so far (7989) x 100 oz or ounces + {OI for the front month (192) minus the number of notices served upon today (41) x 100 oz which equals 814,000 oz standing in this non active delivery month of Oct (25.318 tonnes).
we gained 4300 additional oz standing in this active delivery month of October.
The gold comex is an absolute fraud. The use of kilobars and exact weights makes the data totally absurd and fraudulent! To me, the only thing that makes sense is the fact that “kilobars: are entries of hypothecated gold sent to other jurisdictions so that they will not be short with their underwritten derivatives in that jurisdiction. This would be similar to the rehypothecated gold used by Jon Corzine.ALSO TODAY THE LIQUIDATION OF 96 CONTRACTS HAVING STOOD FOR THE ENTIRE MONTH AND THEN ROLLING MAKES ABSOLUTELY NO SENSE
IN THE LAST MONTH and one half , 23 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
OCT INITIAL standings
Oct 13. 2016
Silver
Ounces
Withdrawals from Dealers Inventory
NIL
Withdrawals from Customer Inventory
1,113,591.69 oz
Brinks
Scotia
Deposits to the Dealer Inventory
nil OZ
Deposits to the Customer Inventory
2,009,412.700 oz
JPM
No of oz served today (contracts)
0 CONTRACTS
(20,000 OZ)
No of oz to be served (notices)
116 contracts
(580,000 oz)
Total monthly oz silver served (contracts)
353 contracts (1,765,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month
3,100,010.5 oz
today, we had 0 deposit into the dealer account:
total dealer deposit: nil oz
we had 0 dealer withdrawals:
total dealer withdrawals: nil oz
we had 2 customer withdrawals:
i) Out of Brinks;; 513,021.890 oz
ii) Out Scotia: 600,569.800 oz
Total customer withdrawals: 1,113,591.69 oz
We had 1 customer deposits:
i) Into JPMorgan; 2,009,412.700 oz
total customer deposits: 2,009,412.700 oz
we had 0 adjustments
Volumes:
Today the estimated volume was 53,243 which is very good.
Yesterday the confirmed volume was 50,765 which is very good
The total number of notices filed today for the Oct contract month is represented by 0 contracts for NIL oz. To calculate the number of silver ounces that will stand for delivery in OCT., we take the total number of notices filed for the month so far at 353 x 5,000 oz = 1,765,000 oz to which we add the difference between the open interest for the front month of OCT (114) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing
Thus the initial standings for silver for the OCT contract month: 353(notices served so far)x 5000 oz +(116 OI for front month of SEPT ) -number of notices served upon today (0)x 5000 oz equals 2,345,000 oz of silver standing for the OCT contract month. THIS IS STILL A HUGE SHOWING FOR SILVER AS OCTOBER IS GENERALLY A VERY WEAK DELIVERY MONTH.
We gained 10,000 additional silver ounces THAT WILL STAND.
Total dealer silver: 29.286 million (close to record low inventory
Total number of dealer and customer silver: 172.745 million oz
The total open interest on silver is NOW close to its all time high with the record of 224,540 being set AUGUST 3.2016. The registered silver (dealer silver) is NOW NEAR multi year lows as silver is being drawn out at both dealer and customer levels and heading to China and other destinations. The shear movement of silver into and out of the vaults signify that something is going on in silver.
end
And now the Gold inventory at the GLD
OCT 13/a deposit of 2.67 tonnes of gold into the GLD/inventory rests at 961.57 tonnes
Oct 12/No changes in inventory/inventory rests at 958.90 tonnes
Oct 11/ what!!! we had a gigantic 9.76 tonnes of inventory increase today/inventory rests at 958.90 tonnes. (this was done with gold down?)
Oct 7: 949.14 tonnes
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Oct 13/ Inventory rests tonight at 961.57 tonnes
end
Now the SLV Inventory
OCT 13/ NO CHANGES in inventory at the SLV/Inventory rests at 161.147 million oz
Oct 12:NO CHANGES in inventory at the SLV/Inventory rests at 161.147 million oz
Oct 11/ a withdrawal of 1.762 million oz of inventory from the SLV/Inventory rests at 361.147 million oz/
.
Oct 13.2016: Inventory 361.570 million oz
end
NPV for Sprott and Central Fund of Canada
will not provide today.
1. Central Fund of Canada: traded at Negative 3.9 percent to NAV usa funds and Negative 4.0% to NAV for Cdn funds!!!!
Percentage of fund in gold 60.6%
Percentage of fund in silver:38.2%
cash .+1.2%( Oct 13/2016).
2. Sprott silver fund (PSLV): Premium FALLS to +1.11%!!!! NAV (OCT 13/2016)
3. Sprott gold fund (PHYS): premium to NAV rises TO 0.86% to NAV ( OCT 13/2016)
Note: Sprott silver trust back into POSITIVE territory at 1.11% /Sprott physical gold trust is back into positive territory at 0.86%/Central fund of Canada’s is still in jail.
end
FEDERAL RESERVE BANK OF NEW YORK/GOLD INVENTORY MOVEMENT:
Last month we had a reading of 7883 million dollars worth of gold at the FRBNY at $42.22 dollars per oz. This month we had a reading of 7849 million dollars
Thus we had 34 million dollars worth of gold valued at $42.22 shipped out.
In oz:
34,000,000 divided by $42.22 = 805,305 oz
in tonnage:25.048 tonnes
Since Germany is the only official nation seeking its gold, no doubt that this gold was repatriated towards Frankfurt.
end
And now your overnight trading in gold,THURSDAY MORNING and also physical stories that may interest you:
Trading in gold and silver overnight in Asia and Europe
Sell Gold Now – Time To Liquidate Gold ETF, Pooled and Digital Gold
By Stephen FloodOctober 13, 20160 Comments
Sell Gold Now – A Note from GoldCore CEO Stephen Flood
It has never been more important to own gold as part of a diversified portfolio. The form your gold investment takes is just as important as owning it in the first place. ETFs and pooled gold may not be functional in extreme markets and may themselves be subject to systemic risk events.
We are living in extraordinary times and key to any investment plan that can weather the coming global financial storm is access to all important – liquidity.
Traditional market liquidity is drying up. Increasingly dark pools are hoovering up equity and FX volumes. Markets are becoming disjointed and prone to large wild swings. Central banks are entering the market on political mandates as opposed to a search for yield, algorithmic investors are untested in bear markets and likely unprepared. The table is set for significant disruption and systemic damage. Your gold investment may not be accessible nor liquid in times extremis.
When you buy gold as a systemic hedge you do so hoping that it will never be needed. You may even hope it falls in value, because if it is falling all your other productive assets are hopefully appreciating. This is the key, gold is valuable as a systemic hedge, if the system is working then gold should fall in value. If gold is rising then the system is not healthy and you need to take stock, literally.
At GoldCore we have long advocated a 5 – 10% allocation of gold into your portfolio. Today given the increasing risks, we believe there is a justification for allocating as much as 20% to 25% of a portfolio to physical gold. Your gold should be held in allocated, segregated and most importantly physical form, with serial numbers, in a non bank vault, in a safe jurisdiction.
Gold owners should be able to take physical delivery of their gold whenever they wish, without entering into a transaction to sell. We believe that gold should have as little legal separation from our clients as possible and that is how we have designedGoldCore Secure Storage – with clients having maximum and outright legal ownership of actual, individual bullion coins and bars.
Beware of e-gold masquerading as allocated gold
Buying gold through an electronic platform can be very convenient and very fast. You can buy significant sums and pay low spreads and low fees, your storage costs for such investments can be extremely cheap too.
These electronic platforms spend a lot of money advertising, and some even claim to give you allocated gold. We do not consider a part ownership of a large 400 oz bar of gold as being allocated. You are in fact a pooled gold investor and one who has no idea of what particular part of a gold bar you own. You can not, unlike GoldCore Secure Storage, drive to a vault in Zurich, Singapore, Hong Kong, Dubai or London and take delivery of your gold, without entering into a sale transaction.
In addition many such platforms force you to only buy and sell through their market board and their online platform and website. Digital gold platforms are “closed loop systems” where liquidity and pricing are dependent on a single platform, website and company. A buyer can only buy and sell through that one online platform. An investor is in effect “captive”. This is very different to owning individual Canadian Maple Leaf gold bullion coins or gold kilo bars and the huge level of liquidity and pricing one has when one owns coins and bars in a segregated and allocated manner.
Yes you may be able to sell your gold in the future but at what cost? Yes you may be able to take delivery in the future, but at what cost? The fact is that if you can’t hold it you may not truly own it.
Caveat Emptor
Stephen Flood, CEO of GoldCore Limited
Email: stephen.flood@goldcore.com
US +1 (302)635 1160
UK +44 (0)203 086 9200
IRL +353 1 632 5010
Open an account with GoldCore today
Gold and Silver Bullion – News and Commentary
Increasingly shambolic U.S. election could support gold said GoldCore (MarketWatch)
Greenspan: Worried about 1970s Style ‘Stagflation’ (CNBC)
Gold prices up in early Asia despite rising chances of Fed hike (Investing)
Wells Fargo CEO Stumpf Quits in Fallout From Fake Accounts (Bloomberg)
Fed Says Several FOMC Members Saw Rate Rise ‘Relatively Soon’ (Bloomberg)
The Demise Of The EU (ZeroHedge)
Doug Casey on “Quitaly” and the Collapse of the EU (CaseyResearch)
Major Silver Bottom Reached; Dramatically Higher Levels Ahead (Investing)
WikiLeaks Bombshell: Emails Show Citigroup Had Major Role in Shaping and Staffing Obama’s First Term (WallStreetOnParade)
If Europe insists on a hard Brexit, so be it (Telegraph)
Gold Prices (LBMA AM)
13 Oct: USD 1,258.00, GBP 1,029.93 & EUR 1,141.76 per ounce
12 Oct: USD 1,255.70, GBP 1,024.53 & EUR 1,139.05 per ounce
11 Oct: USD 1,256.40, GBP 1,021.58 & EUR 1,130.76 per ounce
10 Oct: USD 1,262.10, GBP 1,016.62 & EUR 1,129.71 per ounce
07 Oct: USD 1,255.00, GBP 1,012.91 & EUR 1,127.62 per ounce
06 Oct: USD 1,265.50, GBP 994.30 & EUR 1,131.23 per ounce
05 Oct: USD 1,274.00, GBP 1,001.11 & EUR 1,134.37 per ounce
Silver Prices (LBMA)
13 Oct: USD 17.59, GBP 14.40 & EUR 15.95 per ounce
12 Oct: USD 17.44, GBP 14.23 & EUR 15.83 per ounce
11 Oct: USD 17.48, GBP 14.26 & EUR 15.78 per ounce
10 Oct: USD 17.78, GBP 14.31 & EUR 15.92 per ounce
07 Oct: USD 17.33, GBP 14.01 & EUR 15.55 per ounce
06 Oct: USD 17.76, GBP 13.98 & EUR 15.88 per ounce
05 Oct: USD 17.80, GBP 13.99 & EUR 15.86 per ounce
Recent Market Updates
– Gold In GBP Up 43% YTD – “Massive Twin Deficits” To Impact UK Assets
– Ron Paul Says “Gold Going Up” Whether Trump Or Clinton Elected
– Gold Trading COT Report “Means Lower – Then Much Higher – Prices Coming”
– Currency Shock Sees Sterling Gold Surges 5% In One Minute “Flash Crash”
– Top Gold Forecaster: “As Quickly As Gold Fell” May “Rally Back” on Global Risks
– Gold Buying ‘Opportunity’ After Surprise 3.4% Drop
– Deutsche Bank “Is Probably Insolvent”
– GBP Gold Rises 1.3% as Sterling Slumps On ‘Hard Brexit’ Concerns, Up 36% YTD
– Why Krugman, Roubini, Rogoff And Buffett Hate Gold
– ECB Refused “To Answer Questions” – Deutsche Bank “Systemic Threat” Is “Not ECB Fault”
– Euro “Might Start To Unravel” If Collapse Of Deutsche Bank
– Do You Really Own Your Gold?
– “Gold Will Likely Soar To A Record Within Five Years”
Stephen Flood
Chief Executive Officer
I am the CEO of GoldCore. We help investors buy and store gold and silver easily and cost effectively. We work with clients of every variety from wealth family offices to everyday people. We provide the very best market data and client service and we care deeply for our clients interests.
Published in Daily Market Update
END
Even mainstream is getting the idea that we have gold intervention by governments and bankers
(courtesy John Embry/Kingworldnews)
It’s getting harder to deny intervention against gold, Embry tells KWN
Submitted by cpowell on Wed, 2016-10-12 21:02. Section: Daily Dispatches
5:03p ET Wednesday, October 12, 2016
Dear Friend of GATA and Gold:
It’s becoming difficult if not impossible for a rational observer to deny government intervention against gold and silver in the monetary metals markets, Sprott Asset Management’s John Embry tells King World News today. An excerpt from the interview is posted at KWN here:
http://kingworldnews.com/john-embry-the-imfs-warning-desperate-bullion-b…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
END
All indicators suggest that inflation will rise. Gold will be the ultimate winner here
(courtesy Phoenix Research Capital/Graham Summers)
What Happens to Gold When the Markets Figure Out the Fed Screwed Up?
The Fed is now in very serious trouble.
All but one of the inflation metrics the Fed tracks are above its target rate of 2%.
The one exception is Core Personal Consumption Expenditures (red line below). And it’s turning sharply upwards as well.
H/T VP Research
I keep emphasizing this but no one is paying attention…
THE FED HAS LET THE INFLATION GENIE OUT OF THE BOTTLE.
Look at the recent spike in inflation expectations. We’ve broken the downtrend of the last three years.
BIG inflation is coming. The US Dollar will be dropping hard in the near future.
And Gold will be going through the roof.
On that note, we just published a Special Investment Report concerning a secret back-door play on Gold that gives you access to 25 million ounces of Gold that the market is currently valuing at just $273 per ounce.
The report is titled The Gold Mountain: How to Buy Gold at $273 Per Ounce
We are giving away just 100 copies for FREE to the public.
To pick up yours, swing by:
https://www.phoenixcapitalmarketing.com/goldmountain.html
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
END
A good indicator defining global growth (copper crashing): non existent
(courtesy zero hedge)
Copper Crashes To 1 Month Lows
Selling pressure began during Asian trading following disappointing China trade data but as US markets started trading so Copper futures plunged on extremely heavy volume to one-month lows…
China cut imports for a 6th month…
But it seems the US markets prompted a flush…
As the metal broke crucial technical support..
.
end
Gold prices are now trading at a premium in India. This is in spite of the huge 10% tax and massive smuggling going on over there
(courtesy Dave Forest/OilPrice.com)
Gold Prices Just Did Something They Haven’t Done All YearBy Dave Forest – Oct 13, 2016, 9:49 AM CDT
Finally the global gold market is getting some good news from its top consuming nation — India.
Reports earlier this week suggest that something very unusual has just happened with India’s local gold prices: they’ve jumped to a premium above worldwide bullion prices.
That’s big news because — so far this year — India’s prices have been lagging the rest of the world. With gold here selling at discounts of $50 or more per ounce below average global prices.
But that situation has now apparently reversed itself. With local media reporting that gold sellers in Mumbai’s Zaveri Bazar were quoting gold at $1 to $2 above benchmark pricing. Marking the first time this year that India’s prices have pulled back to parity.
And that’s a critical observation for all participants in the global gold sector.
Here’s why.
http://oilprice.com/er/video? utm_campaign=solar&utm_placement=opban&banner_id=1
As I’ve discussed in the past, India’s buyers tend to act as a floor for the gold market. When gold prices rise (usually driven by speculative trading in places like New York and London), India’s buyers tend to stay away from the market — waiting for a correction to offer a better buying opportunity.
That’s exactly what we’ve seen so far this year. With gold prices rising from near $1,000 to as high as $1,350 per ounce, India’s buying all but dried up. In fact, stats released this week show that India’s gold imports for January to September likely fell 59% to just 270 tonnes — down from 658 tonnes in the same period in 2015.
That lack of buying caused gold prices across India to sag into discount, as buyers waited for better rates to prevail.
And this week’s news shows that Indians now feel that buying opportunity is at hand. With reports suggesting that bullion’s recent plunge to $1,250/oz has lured buyers back into the market.
Such a return of Indian buying is typically a sign that the market has reached bottom — with an influx of new purchases helping to set a floor under prices. Watch for gold to stabilize over the coming weeks, perhaps setting the stage for a renewed rally.
Here’s to getting back in the market
By Dave Forest
http://oilprice.com/Metals/Gold/Gold-Prices-Just-Did- Something-They-Haven-Done-All-Year.html
END
Your early THURSDAY morning currency, Asian stock market results, important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight
:
1 Chinese yuan vs USA dollar/yuan UP to 6.7275( DEVALUATION SOUTHBOUND /CHINA UNHAPPY TODAY CONCERNING USA DOLLAR RISE/MORE $ USA DOLLARS LEAVE CHINA/OFFSHORE YUAN WIDENS TO 6.7362 / Shanghai bourse CLOSED UP 2.84 POINTS OR 0.09% / HANG SANG CLOSED DOWN 375.75 POINTS OR 1.61%
2 Nikkei closed DOWN 65.76 OR 0.39% /USA: YEN FALLS TO 103.73
3. Europe stocks opened ALL IN THE RED ( /USA dollar index UP to 97.75/Euro UP to 1.1037
3b Japan 10 year bond yield: REMAINS AT -.056%/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 103.72/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY.
3c Nikkei now JUST BELOW 17,000
3d USA/Yen rate now well below the important 120 barrier this morning
3e WTI:: 50.30 and Brent:51.99
3f Gold UP /Yen UP
3g Japan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa./“HELICOPTER MONEY” OFF THE TABLE FOR NOW /REVERSE OPERATION TWIST ON THE BONDS: PURCHASE OF LONG BONDS AND SELLING THE SHORT END
Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.
3h Oil UP for WTI and UP for Brent this morning
3i European bond buying continues to push yields lower on all fronts in the EMU. German 10 yr bund FALLS QUITE A BIT to +049%
3j Greek 10 year bond yield RISES to : 8.37%
3k Gold at $1258.80/silver $17.56(8:45 am est) SILVER FINAL RESISTANCE AT $18.50 WILL BE DEFENDED
3l USA vs Russian rouble; (Russian rouble DOWN 5/100 in roubles/dollar) 63.19-
3m oil into the 50 dollar handle for WTI and 51 handle for Brent/
3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation (already upon us). This can spell financial disaster for the rest of the world/China forced to do QE!! as it lowers its yuan value to the dollar/GOT a DEVALUATION DOWNWARD from POBC.
JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 103.73 DESTROYING WHATEVER IS LEFT OF OUR YEN CARRY TRADERS
30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9872 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0896 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.
3p BRITAIN VOTES AFFIRMATIVE BREXIT
3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLS to +.049%
/German 9+ year rate BASICALLY negative%!!!
3s The Greece ELA NOW at 71.4 billion euros,AND NOW THE ECB WILL ACCEPT GREEK BONDS (WHAT A DISASTER)
The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.
4. USA 10 year treasury bond at 1.752% early this morning. Thirty year rate at 2.480% /POLICY ERROR)
5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.
(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)
HELICOPTER MONEY STILL ON THE TABLE FOR THE FUTURE/JAPANESE STIMULUS PLAN DISAPPOINTS
Global Stocks Tumble To Three Month Lows As China Fears Return
Remember when two weeks ago the China Beige Book warned that “It’s A Lot More Negative Than People Think” in the world’s second biggest economy? Well after months of complacency about the Chinese economy and financial risks emanating from its $35 trillion financial sector, overnight the world got a rude awakening when China export figures tumbled, signalling a deeper slowdown than many anticipated just as the Fed prepares to raise interest rates.
As reported last night, the market was caught by surprise after China exports dropped the most in seven months as imports dropped suggesting the latest Chinese credit impulse has again faded; here is the breakdown of the latest disappointing trade data out of the world’s former, and now massively levered, growth dynamo:
China Yuan Exports -5.6% YoY (exp. +2.5%)
China Yuan Imports +2.2% YoY (exp. +5.5%)
China Trade Balance 278.35bn (exp. 364.5bn)
China USD Exports -10.0% (exp. -3.3%)
China USD Imports -1.9% (exp. +0.6%)
China USD Trade balance 41.99bn (exp. 53.00bn)
In Dollar terms that is the biggest drop in exports since February. Imports also slid to +2.2% yoy from +10.8%. As DB notes, “while the trade data has a tendency to be quite volatile, the data will pose downside risks to the Q3 GDP print next week and will also likely put the focus back on the currency.”
The market reaction was swift and unpleasant, as stocks fell around the world, while government bonds climbed. The key carry currency USDJPY plunged on the China news…
… as China’s currency continues to weaken substantially, posing a renewed threat to the Chinese elephant in the room: an acceleration in capital outflows.
The MSCI All-Country World Index headed for an almost three-month low, while 10-year yields on Treasuries dropped three basis points and the yen gained. The Bloomberg Dollar Spot Index advanced to its highest level since March. The pound weakened to $1.2151, although it has since rebounded modestly, while Turkey’s lira slid to a record as renewed dollar strength risks send another shockwave among emerging markets.
PIMCO said it’s time to reduce risk, with the overseer of the world’s biggest actively managed bond fund expecting the Fed to raise interest rates two or three times by the end of 2017. “Shares are falling on a combination of the prospect of the U.S. raising interest rates and a slowdown in global demand hurting China exports,” said Andrew Sullivan, managing director of sales trading at Haitong International Securities Group Ltd. in Hong Kong.
The Stoxx Europe 600 dropped 0.9 percent in early London trading, led by declines in raw material and financial shares. BHP Billiton Plc and Rio Tinto Plc plunged more than 4 percent. Futures on the S&P 500 Index declined 0.8 percent to 2,115. Shares of Wells Fargo & Co. climbed in extended New York trading after the bank’s chief executive officer, John Stumpf, stepped down amid a public outcry over fake accounts. The Hang Seng Index slumped 1.6 percent in Hong Kong. Cathay Pacific Airways Ltd. sank to its lowest level since 2009 after scrapping its profit outlook. Thailand’s benchmark SET Index tumbled 3.2 percent, however in a surprise move it soared from overnight lows and at last check was in the green . The index had fallen every day this week after the royal palace said on Sunday that the king’s condition was unstable.
Benchmark U.S. 10-year yields slid to 1.74 percent, after climbing to the highest level since June on Wednesday. Australia’s 10-year yield dropped six basis points. China’s exports fell 10 percent in September from a year earlier, while imports declined 1.9 percent. Lackluster trade data may increase pressure on the yuan at the same time as new property curbs threaten the nation’s growth rate.
“The Chinese economy is going to be weaker,” said Kazuaki Oh’E, the head of fixed income at CIBC World Markets Japan Inc. in Tokyo. “There’s a flight to quality.”
Bulletin Headline Summary from RanSquawk:
European equities enter the North American crossover in negative territory as disappointing Chinese trade data hampers sentiment
The Chinese trade figures took their toll on the risk currencies, while the USD remains firm against its major counterparts
Looking ahead, highlights include German CPI, US Weekly Jobless Claims, DoE Crude Oil Inventory Report and comments from Fed’s Harker
Market Snapshot
S&P 500 futures down 0.6% to 2119
Stoxx 600 down 0.7% to 336
FTSE 100 down 0.4% to 6999
DAX down 1.1% to 10407
German 10Yr yield down 2bps to 0.05%
Italian 10Yr yield down 3bps to 1.39%
Spanish 10Yr yield up 5bps to 1.11%
S&P GSCI Index down less than 0.1% to 372.4
MSCI Asia Pacific down 0.9% to 137
Nikkei 225 down 0.4% to 16774
Hang Seng down 1.6% to 23031
Shanghai Composite up less than 0.1% to 3061
S&P/ASX 200 down 0.7% to 5436
US 10-yr yield down 3bps to 1.74%
Dollar Index up 0.11% to 98.08
WTI Crude futures down 0.4% to $49.96
Brent Futures down 0.3% to $51.68
Gold spot up 0.2% to $1,257
Silver spot up 0.1% to $17.55
Top Global News
Wells Fargo CEO Stumpf Quits in Fallout From Fake Accounts: Leaving CEO, chairman posts effective immediately; COO Tom Sloan to replace Stumpf; Stumpf Departure Doesn’t Quell Congress’ Fury: Legislators
Fed Minutes Suggest Yellen Made the Difference in ‘Close Call’; investors will get a chance to hear directly from Yellen on Friday when she speaks at a Boston Fed conference.
EBay to Raise More Than $1b Selling Stake in MercadoLibre: Parent offering up to 5.5m, underwriters Morgan Stanley, JPMorgan have option 825k extra MercadoLibre shares.
Trump to Intensify Attacks on Clinton Over Bill’s Accusers: Advisers think tactic will make Hillary Clinton appear toxic, depress turnout among young women.
U.S. to Double Shale Gas Exports on Cheniere’s Train 2: Co. cleared by U.S. regulators to start loading tankers with LNG from second plant at Sabine Pass, La.
Janus-Henderson Sees U.S. Fund Growth Outstripping Others: Cos. expect largest growth in their combined funds management business to come from U.S. after 2 firms join together to oversee >$300b.
Tesla Dominates U.S. Luxury Sedan Sales: U.S. sales of Model S jumped 59% y/y in 3Q, according to internal numbers.
Sprint “Hail Mary” Financing Buys More Time for Turnaround: Softbanks CEO Son, his team have won raves from Wall Street by mortgaging Sprint’s most valuable assets to buy time to pay off creditors.
SunEdison Receives Subpoena as Part of SEC Investigation: bankrupt clean-energy co. received notice Oct. 5 of “non- public, fact-finding investigation.”
Apple CEO Tim Cook Visits Nintendo Headquarters in Kyoto: Cook spent about an hour meeting with Nintendo President Tatsumi Kimishima, Super Mario co-creator Shigeru Miyamoto.
Hurricane Nicole Extremely Dangerous, Heads for Bermuda: NHC: Maximum winds at 130mph.
Looking at regional markets, we start as traditional in Asia where stocks traded mostly lower following a subdued after weak Chinese trade data dampened sentiment, while relatively uneventful FOMC minutes provided little insight into the Fed’s thinking. ASX 200 (-0.7%) was dragged by commodity names after oil prices retreated below USD 50.00/bbl following a lack of developments at producer talks in Istanbul and a build in API crude inventories. Nikkei 225 (-0.4%) failed to hold on to early gains alongside swings in USD/JPY, while discouraging Chinese data in which trade balance fell to a 6-month low and exports unexpectedly contracted pressured the Hang Seng (-1.6%) and Shanghai Comp (+0.1%), although the latter narrowly remained afloat following recent announcements to support investment growth in the mainland. The poor trade figures also weighed on US equity futures which saw E-mini S&P retreat below a key 2120.00 support level while Dow futures dropped over 100 points.
Top Asian News
China Cooling Property Market Is New Economic Growth Threat: High-profile tightening reverses two years of easing cycle.
TSMC Profit Rises to Record on Orders for Apple Processors: 3Q net income NT$96.8b beats est. of NT$95.3b.
Cathay Pacific Falls to 7-Year Low After Profit Outlook Scrapped: Jefferies expects Cathay to report losses in 2H and 2017.
Samsung Stock Meltdown Attracts Investors on Survival Bets: Shares of Samsung trading near cheapest level since Feb.
Showa Shell, Idemitsu to Delay Merger, Nikkei Says: Both parties still agree that early merger is necessary.
Fast Retailing Forecasts FY Net Income Up 108.1%, Missing Est.: Sees net income of 100b yen for current fiscal year vs 104.7b yen analyst est.
In Europe, the re-emergence of Chinese concerns took the limelight from last night’s uninspiring FOMC minutes as soft Chinese data dictated price action this morning with weak imports and exports painting the picture that global demand remains sluggish. In reaction to this, US equity futures extended on losses with European equities following suit as Chinese exposed sectors, mainly material names dampened sentiment. As such, FTSE 100 has continued to pull away from its recent intra-day record highs seen earlier this week, while Tesco shares have also been weighing on the index after pulling Unilever products in a dispute over pricing. Government bond yields slipped amid the aforementioned Chinese trade figures with bonds paring the large declines seen from yesterday’s session. Additionally, ECB sources resurfaced with reports indicating that the central bank could potentially make technical changes to QE including a temporary deviation from the capital key.
Top European News
Pound’s Plunge Squeezes U.K. Companies as Brexit Hedges End: Dilemma for merchants: pass on higher cost or hold line on prices that erode profits; London Home Presales Slump 14% as Brexit Compounds Tax Woes
U.K. Housing Market Strengthens in Sept. as Brexit Hit Fades
Unilever Price Increases Weigh on Demand in 3Q: Volume of 3Q goods sold declined 0.4%, surprising analysts who expected an increase.
Brexit May Affect French Race With Juppe Demandin