Gold Daily and Silver Weekly Charts - Capped - The Fog of Currency War

The Lord is my light and my salvation;
          whom shall I fear?
The Lord is the center and refuge of my life;
           of whom shall I be afraid?

Psalm 27:1

With the VIX soaring and the US equity markets seeing their first 2% correction in many moons, the capping on the precious metals was determined and obvious.

So much for 'Greek capitulation.'

I think Syriza realized they were being presented an untenable solution, the 'generous offer' of extend and pretend by Merkel and the Eurocrats, with the IMF playing heavy.

This bailing out of private creditors while extracting a pound of flesh from the Greek people, facilitated by corporate friendly governments, was exactly how Greece came into this situation in the first place.

I thought fomenting a bank closure on Greece by the EU was a bit tough, and probably senseless. Showing them the lash to get them to fall to heel and all that.

Most economic commentators in the US are completely clueless about money these days, and global economics as well.

More surprises will therefore be coming I am sure.

Have a pleasant evening.

 

 

 

 

SP 500 and NDX Future Daily Charts - 2% Correction, Long Overdue

 

US equity markets had about a two percent correction, with the SP 500 testing its 200 DMA.

 

Forget the domestic economic news, it was all geopoliticals and mostly about Greece.

 

The markets do not like the uncertainty of what will happen in Greece, as well as Puerto Rico and the Ukraine, not to mention the wavering financial assets bubble in China.

 

I am treading slowly through the commentary and news about Greece.  The least helpful are those who are mostly projecting their egos or some ideology.

 

This is primarily a political problem.  Greece has a left wing government that the Western powers find unattractive compared to the puppet governments which have facilitated the bailing out of Greek's private creditors while sustaining an unsustainable economic situation.

 

I am puzzled by Jeffrey Sachs who suggest that Greek default on their debt, but remain in the Eurozone.   I am not quite sure how they might do that, and while Jeff says their is no mechanism to actually kick them out it does seem a bit too cute.   The EU does not have a mechanism for forgiving one member's debts and not another's either.

 

Have a pleasant evening.

 

 

NAV Premiums of Certain Precious Metal Trusts and Funds

 

"Force may make hypocrites, but it can never make converts."

William Penn

 

Despite unfolding debt crises in Greece, Ukraine, and Puerto Rico, the flight to safety in precious metals is being well managed in the paper markets.

 

The gold/silver ratio is nose-bleed high.

 

The premium on Sprott Silver is slightly positive, showing a bit of resistance for those holding physical bullion, even if by proxy. 

 

The confidence game is long in the tooth, and some are not willing to play this time.  Much moreso in the physical bullion markets of Asia.  They are playing by stacking.

 

 

 

 

Shanghai Gold Exchange 54.2 Tonnes of Bullion Withdrawn - Total More Than All Official Gold of US

During the latest week there were 54.2 tonnes of gold withdrawn from the Shanghai Gold Exchange.

Since the beginning of 2009 there have been 9,030 tonnes of gold taken out of the Shanghai Exchange into China.  

That is more than 290,320,000 troy ounces of fine gold in bars.

Just for the sake of comparison, as shown in the last chart below, the total official holdings of the United States are about 261,498,926 ounces of gold.

So it does seem that since 2009 more gold has been withdrawn from the Shanghai Exchange than is in all the official holdings, vaults, forts, mints and Federal Reserve Banks of the United States.

Related: Why Shanghai Gold Withdrawals Equal Chinese Gold Demand

Current Report: May 31, 2015

Department of the Treasury Bureau of the Fiscal Service STATUS REPORT OF U.S. TREASURY-OWNED GOLD May 31, 2015
Summary	Fine Troy Ounces	Book Value
Gold Bullion	258,641,878.074	$10,920,429,098.79
Gold Coins, Blanks, Miscellaneous	2,857,048.156	120,630,858.67
Total	261,498,926.230	11,041,059,957.46
Mint-Held Gold - Deep Storage
Denver, CO	43,853,707.279	1,851,599,995.81
Fort Knox, KY	147,341,858.382	6,221,097,412.78
West Point, NY	54,067,331.379	2,282,841,677.17
Subtotal - Deep Storage Gold	245,262,897.040	10,355,539,085.76
Mint-Held Treasury Gold - Working Stock
All locations - Coins, blanks, miscellaneous	2,783,218.656	117,513,614.74
Subtotal - Working Stock Gold	2,783,218.656	117,513,614.74
Grand Total - Mint-Held Gold	248,046,115.696	10,473,052,700.50
Federal Reserve Bank-Held Gold
Gold Bullion:
Federal Reserve Banks - NY Vault	13,376,987.715	564,805,850.63
Federal Reserve Banks - display	1,993.319	84,162.40
Subtotal - Gold Bullion	13,378,981.034	564,890,013.03
Gold Coins:
Federal Reserve Banks - NY Vault	73,452.066	3,101,307.82
Federal Reserve Banks - display	377.434	15,936.11
Subtotal - Gold Coins	73,829.500	3,117,243.93
Total - Federal Reserve Bank-Held Gold	13,452,810.534	568,007,256.96
Total - Treasury-Owned Gold	261,498,926.230	$11,041,059,957.46

Deep Storage: That portion of the U.S.Government-owned Gold Bullion Reserve which the Mint securesin sealed vaults that are examined annually by the Treasury Department's Office of the Inspector General.
 

Deep-Storage gold comprises the vast majority of the Reserve and consists primarily of gold bars. (Formerly called "Bullion Reserve" or "Custodial Gold Bullion Reserve").
 

Working Stock: That portion of the U.S. Government-owned Gold Bullion Reserve which the Mint uses as the raw material for minting Congresssionally authorized coins.
 

Working-Stock gold comprises only about 1 percent of the Reserve and consists of bars, blanks, unsold coins, and condemned coins. (Formerly listed as individual coins and blanks or called "PEF Gold").