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On August 1, we in charts how Shanghai’s physical gold market is nine times that of the COMEX, after remarking on the pace at which smart investors snapped up the physical registered as available, in warehouses affiliated with the US exchange: .
By mid-December, the available gold fell to 18.69mt, in futures had seen some serious, and new shifts. Gold paper prices re-tested their June $1,180 low on December 31, as the 10 year US Treasury yield double tops at 3%, along with the Dow Jones Industrial Average peaking the same day.Now we sit at 2.82% as the Fed prints liabilities far in excess of good assets, while demand for dollars dies—not a mix destined for higher rates. The pitch is the same as the statist’s antagonism against gold.
Mid-January and gold registered on the COMEX has hit another low, 11.51mt, as open contractual interest in the physical metal increased today by 26,577 contracts (of 100 troy ounces), or by 2,657,700 ounces, to 415,426 in futures.
This boosts leverage to an amazing 112.2x, more than the 90-100 to one commonly cited as wackadoo. In that vein, Deutsche Bank will sell their LBMA seats to another participant, and while the horror of spot price setting by telephone with a third party is the red herring (as the price is merely an offer to sell the metals at the price, for immediate delivery), it may be timed with turmoil should the euro go gold-backed alongside the yuan and ruble, whether aided by an international organization or not. Why else would they put the populace through so many broken promises, if not harboring the intent of eventual transition to a sound, international monetary system?
From this perspective we couldn’t help but notice those needing to devalue, supposedly due to strong currencies, seem to have the most profligate central banks. Perhaps Germany is slowly moving to market-based price discovery of gold, by pulling their reserves home, now breaking from daily fixing routine. The bank did mention they would still remain active in precious metals—this is an important point. Many feel the framework is already there, in China, and European nations Cyprus and Greece, didn’t sell gold, rather using it as collateral in euro lending. Is this the last helicopter out, as silver has twice intertwined around six year old support levels?
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On August 1, we in charts how Shanghai’s physical gold market is nine times that of the COMEX, after remarking on the pace at which smart investors snapped up the physical registered as available, in warehouses affiliated with the US exchange: .
By mid-December, the available gold fell to 18.69mt, in futures had seen some serious, and new shifts. Gold paper prices re-tested their June $1,180 low on December 31, as the 10 year US Treasury yield double tops at 3%, along with the Dow Jones Industrial Average peaking the same day.Now we sit at 2.82% as the Fed prints liabilities far in excess of good assets, while demand for dollars dies—not a mix destined for higher rates. The pitch is the same as the statist’s antagonism against gold.
Mid-January and gold registered on the COMEX has hit another low, 11.51mt, as open contractual interest in the physical metal increased today by 26,577 contracts (of 100 troy ounces), or by 2,657,700 ounces, to 415,426 in futures.
This boosts leverage to an amazing 112.2x, more than the 90-100 to one commonly cited as wackadoo. In that vein, Deutsche Bank will sell their LBMA seats to another participant, and while the horror of spot price setting by telephone with a third party is the red herring (as the price is merely an offer to sell the metals at the price, for immediate delivery), it may be timed with turmoil should the euro go gold-backed alongside the yuan and ruble, whether aided by an international organization or not. Why else would they put the populace through so many broken promises, if not harboring the intent of eventual transition to a sound, international monetary system?
From this perspective we couldn’t help but notice those needing to devalue, supposedly due to strong currencies, seem to have the most profligate central banks. Perhaps Germany is slowly moving to market-based price discovery of gold, by pulling their reserves home, now breaking from daily fixing routine. The bank did mention they would still remain active in precious metals—this is an important point. Many feel the framework is already there, in China, and European nations Cyprus and Greece, didn’t sell gold, rather using it as collateral in euro lending. Is this the last helicopter out, as silver has twice intertwined around six year old support levels?
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