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The con...
Cleared OTC London Gold hike from $6751 to $9450 (40%.)
The Exchange (CME) acts as the clearer for these OTC products, eliminating counterparty risk (cash deals done in OTC space, is posted / converted into futures via the Clearport platform). The Exchange however does not post Open interest in these OTC cleared forwards.
DATE : Thursday, September 8, 2011
NOTICE # : 11-317
SUBJECT : Performance Bond Requirements: Agriculture, Coal, Crude Oil, Ethanol, Freight, Metals, Natural Gas, NGLs, and Refined Product Outrights - Effective Monday, September 12, 2011
FOR THE FULL TEXT OF THIS ADVISORY :
Cleared Products Margin Advisory
The pro...
“International supervision over the issue of U.S. dollars should be introduced and a new, stable, and secured global reserve currency may also be an option to avert a catastrophe caused by any single country.”
Xinhua, China’s official news agency
The Whoa!
“I think silver will outperform gold in the next decade. If silver should trade at a 16 to 1 ratio (to gold), it will probably trade at 10 to 1 because things tend to overshoot. Let’s use Jim Sinclair’s $12,000 target, that would suggest $1,200 silver, which is a thirty bagger from here...The biggest reason it (silver) should go there is people should fear bank deposits, that’s what I think they should fear.”
Eric Sprott at KWN
And Look Who's Talking Now...
"After rallying nearly 100 USD last week from 1795 to 1895 with demand coming from the official sector and some leveraged players rebuilding length following the severe prior correction we traded to new all time highs of 1922 on Tuesday shortly before the Swiss Franc intervention.
The immediate aftermath was in complete contradiction to prior recent episodes of intervention and what anyone would have expected. Instead of spurring a further gold price rally on the basis that it was one of the few remaining safe haven "currencies" we saw a 50 USD collapse in minutes.
The source of this flow seems hard to pin down with some speculating over whether "authorities" were concerned about the signals of an accelerating gold price and its impact on other fragile markets. Soon after, much of the losses were recovered but the psychological damage had been done and there followed a series of liquidations from within the leverage space with gold closing down 50 USD on the day. This was then exacerbated by a near 60 USD flash crash within 2 minutes during the Asian session."
Goldman Sachs, September 8, 2011
Perception management, start to finish. Gold was not to be viewed as a safe haven during a renewed sovereign default concerns. Without interventions I suspect the yellow metal would have broken out to new highs.
The Ten Year Treasury yield dropped to an intraday record low of 1.89 percent, before settling at 1.92, in an obvious flight to safety caused by renewed talk of a default by Greece.
Still, despite repeated bear raids, especially in the lighter periods of the trading day, gold and silver remained resilient.
"In careless ignorance they think it civilization, when in reality it is a portion of their slavery...To ravage, to slaughter, to usurp under false pretenses, they call empire; and where they make a desert, they call it peace."
Tacitus, Agricola
“A psychopath can tell what you’re thinking but what they don’t do is feel what you feel. These are people without a conscience.”
Bob Hare
It was 'fear on' as concerns about a Greece default had stocks selling off led lower by the financials. The VIX remained elevated. We will have to see if anything comes out of the G7 or the ECB before Monday.
The Ten Year Treasury hit a record low of 1.91 yield today.
Gold and silver were repeatedly pummeled but remained resilient in the light trading sessions overnight and in the access market this evening. The perception management was painfully obvious.
Although there were many smacking Obama today, it was not clear what he might have offered as a solution to please the Congressional sociopaths on the right, except human sacrifices of the poor, the elderly, the immigrants, and the different. The hyper-polarization of the monied interests has been inflamed by the moral hazard of the bailouts and excuses of the financial sector fraud. These fellows despise conciliation and compromise as weakness.
This is one of those remarkable episodes in history that Americans, Europeans, and Brits might have trouble explaining to their grandchildren. But ignorance is a familiar excuse.
I will be covering the obvious bear raids in my gold and silver chart commentary.
One of the pampered princes on financial television, who often carries the daily talking points for the pigmen, has said about fifty times today that:
perception management
'look at the price of gold, why isn't it going up if there is a European banking crisis? Is it really a safe haven like Treasuries and defensive stocks?'
/perception management
Gold will likely be hit again in the thin trade of the access market.
Crazy days in the metal trade as the recent bear raid, using the infamous Dr. Evil strategy, did not stick.
The people and traders of India and China may have liked the buying opportunity, but I suspect it just gave Blythe and her merry pranksters a headache.
Most commentary on the economy carried on the television financial networks is astonishing. How many moons do these people have on their planets?
It is almost a curse to know anything these days. But it is as I forecast it, so it should come as no surprise. The monied interests will keep pushing their agenda until they and the country hit the wall, in the manner of the obsessive-compulsive addicts that they are, like an alcoholic who finally wraps his car around a tree. And then the job of rebuilding and recovery can begin.
The next big events for the metals are likely to be the FOMC September 20-21 meeting, and the Comex October Option expiration on September 27.
I doubt that Obama will say anything useful, other than staging another raid on Social Security with a payroll tax cut, an infrastructure bank, and perhaps a refi program, all vetted by his Wall Street cronies.
The only thing he could do to satisfy this Jacksonian is to fire a number of his appointees in the CFTC, SEC, and Justice, bring in Eliot Spitzer as his Attorney General, William K. Black to head the SEC, Liz Warren at Consumer Protection, Bart Chilton as Head at the CFTC, Robert Reich at Labor, Ron Paul at Defense, Michael Hudson at Treasury, and to let justice be done, though the heavens may fall.
Fat chance of any of that, so gold and silver look like enduring safe havens.
Timmy addresses Jamie Dimon and his troops, Kelly on the Asian trading desk gets her buying opporunity, and Blythe has her shorts in a twist, and a headache.
