JPM Customer Delivers 500 Gold Contracts of Bullion, Goldman Takes Most For the House

It is not possible to interpret the action fully from this report below.  Let me stipulate that up front.

It seems that a 'customer' trading with JPM has allowed 500 of their August gold receipts to be taken for 'delivery.' And most of them, 442 to be exact, were picked up by Goldman Sachs for their 'House' account.

In and of itself this may not be so significant. For example, we do not know who the 'customer' at JPM might be, or why they might have been selling their bullion receipts. Perhaps they were just raising some cash to cover stock losses.

And we do not know why Goldman picked up receipts for 44,200 ounces of gold at $1124. And what exactly this 'house account' might be.

Goldman has been stopping, or taking deliveries, for their House account pretty steadily this month.

Don't be too impressed by the words, because a 'delivery' just means paper receipts change hands.  Most of the time nothing really happens to the bullion, at least in The Bucket Shop.  It just gets shoved around the plate.  Up for delivery, back to storage, rinse and repeat.

I do like to keep track of how many receipts are marked 'deliverable' or offered for sale at the prevailing price, compared to the potential number of claims, or active contracts.

This is how it is for gold.   Silver, not so much.

CNT seems to be using the Comex for an actual sale and delivery and withdrawal mechanism for their actual business of obtaining a supply of bullion for their wholesale customers.

What an odd thing to do, actually transact deals between people who will take and use what they sell.  Well, they are an oversized coin shop, so you will have to excuse them.

And as the pit slugs will be quick to point out, we do not know exactly what this transaction on this report 'means.'  That is in the nature of these markets and their reports.  It could have been this, it could have been that.   Don't stand too close to the table kid.

I just thought it was interesting, and wanted to make a note of it for future reference.   I am curious to see how things in the warehouse reports set up for the big month of December.

And besides, it's nice to watch someone busy doing God's work.

Gold Daily and Silver Weekly Charts - The Only Certainty Is Change - Option Expiration

The stock market was finally taken in hand by some adults, who worked to stabilize the prices, and then slowly and deliberately walked it backed up, getting a little greedy perhaps in the last hour when they started running the bears into short covering.

I do not expect this to end well. It is just a matter of time, and timing.

To that end I have posted intraday my favorite commentary on hubris and will to power that was American finance and politics in the 1920s. It is titled Remembering the Summer of 1929.

You may wish to do yourself some service and watch the entire documentary.  It is worth it.

Today was an option expiration at The Bucket Shop.  Gold and silver fell somewhat to the campaign of managing the wallets of passing speculators, as well as perceptions.  The pinnacle of the Banks, the Fed, seeks to restore confidence in paper, and discourage even a thought of just about every other alternative.

The dollar managed to rally a bit back up today. A stronger dollar is definitely not in the interests of the US economy, but it does favor the predatory financial class.  And since they are 'in the driver's seat' of the markets these days, they bend them to their will as they may.

Forces backing the supremacy of  US dollar based paper financial assets and decision making are fighting this trend towards economic and monetary alternatives in the rest of the world with all their power.  So we are watching an historic, great drama unfolding.

The rise and decline of Empire are often not discernible to the participants at the time, and often tend to follow their own schedules, seemingly slow and then in great rushes of change that seemingly could not have possibly been foreseen.

And never forget this great truth that in the long timescale of monetary history, gold and silver are almost constants, but purely paper money is just a glimmer, a relative flash in the pan that is here, and then it is gone, with whatever passing regime of the day that may have fathered it.

Gold and silver are forged in the hearts of great and uncommon stars, and nowhere else. And the trappings and ornaments of mortal men are often powerful, and sometimes seemingly irresistible for a time, but in the end they are just dust, returning to the vanity and nothingness of their creators.

As will even gold and silver return to nothingness, at some even more and very distant day.    But the soul of even the most common and ordinary person will endure in its Creator forever.  So let us mark our priorities accordingly.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Walk the Market Higher, Slowly and Deliberately, and Then?

Yesterday we saw a furious rally in the morning that failed, and badly.

Today the bulls and their backers in various moneyed quarters were a little smarter. They gather themselves together, stabilized the market at a sustainable bottom, and then slowly and deliberately walked it up into the close.

This should give a little cheer to the rest of the world, and hopefully we will see some more stability especially in the Asian markets.

Nothing has changed, really. This is all perception and cosmetics.

Not one thing has changed.  Nothing.   This was only a taste of things to come if nothing really changes.

There is not an ounce of will to reform anything in New York and Washington. What we saw this week was the pigs getting frightened that they were losing control, and especially losing ready access to their personal feedbags.

The worst thing that these jokers can do now is get overconfident and greedy, and run the markets back up, trying to achieve the former high so they can get their dopey rate increase out in September or October.  I would not put this past them since for the most part they are fluff and stuff, lacking all wisdom and proportion.  

If they do this, and if the market falters and begins a slight downward again, the risks to the economy are unimaginable to most. But they are especially unimaginable to these myopic, puffed-up, bureaucrats at the Banks, and the indentured servants of Big Money in Washington.

Have a pleasant evening.