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Friday, 11-Dec-2015
 Lawrence Williams (LawrieOnGold) China
ups gold reserves 20.8 tonnes in November The figures thus
suggest that China increased its reserves by 20.8 tonnes over the period –
the highest monthly increase in its gold reserves since it started announcing
monthly reserve figures back in July.
PG Note: The relentless movement of physical gold from weak hands in the
west to strong hands in the east continues. That gold is not coming back
anytime soon — if ever — and most certainly not at anywhere near the
current price.
Michael J. Kosares (USAGOLD) What would
Keynes have done? Kosares quotes Richard Hurowitz, writing in
The Wall Street Journal: “Keynes was an economic theorist, but he was also a
clear-eyed market analyst, and a passionate and committed speculator for his own
account and for Cambridge University. If he took in today’s economic vista of
near-zero interest rates and quantitative easing, it is clear that he would
be buying gold hand over fist—regardless of what his disciples might think.”
MK Note: I believe Hurowitz is right about Keynes and gold. He would have
understood the wolf hammering on the door and adjusted accordingly – both in
his personal finances and as an advisor to governments. I keep coming back to
former Fed chairman Alan Greenspan’s comment last October that “Gold is a
good place to put money these days given its value as a currency outside of
the policies conducted by governments.”
Rajendra Jadhav (Reuters) Indian
industry group to launch first physical gold exchange A bullion
association in India is planning to launch the country’s first physical gold
trading exchange, in an attempt to bring transparency to the market for the
precious metal in the world’s second biggest consumer.
PG Note: It looks like India will follow the lead of China and offer a
physical exchange to wrest gold price discovery away from the paper markets
of the west.
Chris Martenson (PeakProsperity) The
Screaming Fundamentals For Owning Gold Gold is one of the few
investments that every investor should have in their portfolio. We are now at
the dangerous end-game period of a very bold but very reckless &
disappointing experiment with the world’s fiat (unbacked) currencies. If this
experiment fails — and we observe it’s in the process of failing — gold will
provide one of the best forms of wealth insurance. But like all insurance products,
it only works if you buy it before you need to rely on it.
PG Note: A comprehensive and spot-on examination of gold’s fundamentals by
Martenson.
Alan Sykora (KitcoNews) UBS:
Potential For ‘Dramatic’ Short-Covering Rally In Gold Is ‘Elevated’ The
risk of short covering in gold remains elevated, says UBS. A large number of
speculators are holding short, or bearish, positions in anticipation of a
rate hike when the U.S. Federal Open Market Committee meets next week. “The
upcoming FOMC meeting has been well flagged,” UBS says. “Market positioning
suggests that the gold market has also been preparing itself for a Fed rate
hike – net speculative longs are currently at the lowest in 14 years.” The
most recent Commodity Futures Trading Commission data show gross shorts are
at 93% of the record, UBS continues. “Extreme short positioning suggests that
the risk of a more dramatic short-covering rally is currently elevated,
particularly if a rate hike is accompanied by dovish rhetoric.”
PG Note: We got a little taste of that last Friday, when gold surged after
further assurances that the rate hike is coming. However, that was probably
nothing compared to the short-covering rally that would ensue if traders
really start unwinding this really overcrowded trade.
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