SP 500 and NDX Futures Daily Charts - What, Us Worry?

Another afternoon stick save for equities.

 

NAV Premiums of Certain Precious Metal Trusts and Funds - Drawdown in Sprott Gold Trust

I do not know when it happened as I just noticed it today, but the Sprott Physical Gold Trust reduced its bullion level and the shares outstanding in what was apparently a redemption of units for gold.

The bullion level was reduced by 8,292 ounces, and the units outstanding by exactly 1,000,000. The cash on hand dropped by $434,969 which may be unrelated since it is used to pay storage and management fees.

The two spreadsheets are dated today and August 2. I sometimes neglect to update inventory so it could have happened earlier than that.

As you know the Sprott Trusts do have a facility for the redemption of units for bullion, so I do not view this with any concern, merely curiosity. Obviously someone wanted physical gold bullion for some purpose.

I include both the current and my last spreadsheet pages below.

Gold Daily and Silver Weekly Charts - Hedge Funds Stage Limp Bear Raid in Light Volume

...and the horse they rode in on.

Weighed, and found wanting.

Stand and deliver.

SP 500 and NDX Futures Daily Charts - Weak Economy, Den of Vipers

There was little price discovery in the market today, just some algos tiredly batting the prices around in light volume.

Gold Daily and Silver Weekly Charts - Treading Water

Let's see how the physical inventories fare this week. The hedge funds seem to be determined to press the paper price of the metals lower.

I am watching this 'W' formation on the gold chart with increasing fascination. If the funds cannot negate this, then W will stand for whiplash.

SP 500 and NDX Futures Daily Charts - Complacency Reigns, But Jitters Behind the Scenes

There was a light volume choppy market in stocks today despite the 'better than expected' number for ISM Services.

Richard Fisher came out and make hawkish comments about the Fed's policy, which dampened the markets.

VIX dropped again, but you have to wonder about this given the 'heightened threat' environment that is alledged to be the worst since 9/11.

This is a light data week, and the equities markets will lack direction except from earnings and secular events.

Gold Daily and Silver Weekly Charts - Ship of Fools

The metals were pounded in the quiet overnight session on the COMEX ahead of the Friday Jobs Report, with gold smacked down to $1282 and silver down to $19.20.

The jobs number came in light, and the metals rocketed back to where they started.

Gold is now in the August delivery cycle with registered inventories of actual bullion on the COMEX down to shocking lows. 

The US is closing some of its overseas embassies this weekend and has issued a travel alert because of terrorist threats.   Let's see if anyone throws a flag on the field over the weekend.

A new scandal has emerged as the CFTC investigates fifteen of the biggest banks which apparently have been rigging a key interest rate number in order to swindle their customers in the swaps markets.

"US regulators have reportedly been handed evidence that traders at some of the world's biggest banks manipulated a key rate for derivatives, pocketing millions at the expense of pension funds in the process."

Apparently New York and London are where the elite meet to cheat. 

As Jeff Sachs said to a meeting of economists at the Philly Fed, our modern financiers seem to be almost pathologically criminal, and some of the world's politicians are rightfully aghast at the scope and audacity of their abuses.   Blowback for this gross failure of integrity in financial governance is coming, and it could be terrific.

They have no shame, they are unworthy of all trust, and their word means nothing. So what is there to discuss?

Weighed, and found wanting.

Stand and deliver.

SP 500 and NDX Futures Daily Charts - Complacency Reigns

Another day, another weak jobs report, another scandal in which Banks are discovered to be fixing a key rate to cheat the people, this time through interest rate swaps.

When will it end?

NAV Premiums of Certain Precious Metals Trusts and Funds - Banks Rigging Derivatives

It appears that the overnight hit on the metals for Payrolls Friday got stuffed pretty handily when the jobs number came in light.

Silver is still up although gold has been pressed back a bit.

The CFTC is investigating fifteen of the biggest banks on evidence handed to them that they were rigging a key derivative for interest rates.

"ISDAfix is published each morning after banks submit bids for swaps via Icap, the inter-dealer broker, in a number of currencies. The CFTC has been investigating suggestions that the banks deliberately moved the rate in order to profit on these deals.

Given the hundreds of trillions of dollars worth of interest rate derivatives trades that occur annually, even the slightest manipulation can have a substantial effect.

The CFTC, which started to investigate ISDAfix after last summer’s Libor scandal has now been handed emails and phone call recordings that show the rate was deliberately moved..."

When crime pays, why wonder that it flourishes? And they have little fear, and no shame.

Gold Daily and Silver Weekly Charts - The Day Before the Non-Farm Payrolls Report

The metals were capped lower today as stocks went running higher. Gold was hit a bit harder than silver.

The August delivery period now begins.

Stand and deliver.

SP 500 and NDX Futures Daily Charts - A Record Close on the SP 500

A better than expected on manufacturing in the ISM Index and a lighter than expected number of new unemployment claims had the bulls stampeding higher to a new record close on the SP 500.

Tomorrow is the Non-Farm Payrolls report.

Traders believe now that the Fed will keep printing money while inflation remains subdued.  Or at least that is the word for today.

A Forensic Investigation of Gold

This is interesting, but apparently somewhat tentative, which is understandable given the nature of the subject.

I am not in a position to assess it quite yet, but I thought it was worth sharing to see what you all might think. I intend to follow this closely and spend more time looking into it. Today I am preoccupied with the wonders of the healthcare system.

I find the opacity in these exchanges and funds to be somewhat frustrating as I am sure many do, as well as the lack of detailed independent audits and full and timely disclosure, especially with regard to what might be considered to be public information.

But still the effort can be made to untangle things as best we can.

Here is a summary of key points by Mr. Ferguson of the analysis.

"GLD was "funded" with gold leased out (sold) by the BoE and SNB.

With everything going on, not only are those entities no longer willing to provide supply, they're actually taking their gold back before it's too late.

Holders like Paulson and Soros are the "fly in the ointment" as they have a GLD claim on the same gold that the BoE and SNB claim as their own "leased" assets.

We are witnessing a managed, slow-burn "run" on the London vaults, where supposed "allocated" gold rests for entities worldwide but this gold has instead been leased out, not only to the GLD, but sold into the market and currently dangling around the necks and wrists of Asians as well as being recast into 1Kg Chinese bars."

Read the entire article here.

I would imagine it would be fairly easy for GLD to address any mistakes in this with a clear statement with regard to any claims or counterclaims on its bullion.

COMEX Registered Gold inventory Continues To Decline - A Litany in Time of Frauds

"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage."

John Kenneth Galbraith, The Age of Uncertainty

As a reminder of something we have discussed previously, the COMEX does not take legal responsibility for or audit the bullion inventories reported, as stated in the following disclaimer which they added to their records in June of this year.  They rely on the accuracy and integrity of the parties which report this and other information to them.

"The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness.  This report is produced for information purposes only."

I think this statement by the COMEX is quite clear and to the point.

It is possible to doubt anything. But sometimes we just have to accept that the data is what it is, without imputing to it anything more, or less, than what it may be. And that applies to most data that comes from the markets, which all deserve a measure of skeptical examination, things being what they are.

A broad and continuing review of all the data tends to provide the best and most reasonable approximation of what is real. Where several data sets from various sources resonate their agreement, we may proceed with more confidence than we might from a single source that is subject to error and other human vagaries.  And where there is disagreement of measurements in the form of conflicting data, then further examination is required to resolve and understand it.

Having said all this, the inventory which has been reported as registered and deliverable has continued to drop into the August delivery period which starts tomorrow.  

And since this and other data seem to indicate a shortness of supply against a continuing strong demand, which generally indicates a higher market clearing price ahead, this is something that we will all watch with keen interest I am sure.

But this is no 'sure thing,' unfortunately, given the propensity for the modern bankers to dictate protractedly their own reality by fiat, that is, by the power of the will, and their persuasive commands.  Such are the ways of empire, as they wax and wane in the character of their leaders.

"Boast not of what thou wouldst have done, but do
What then thou wouldst."

John Milton, Samson Agonistes

Stand and deliver.

Gold Daily and Silver Weekly Charts - Metals Batted Around on the FOMC

You might call today turbulent, but since the volumes on the markets were so insubstantial perhaps it is best described as an end-of-month dust devil.

The August contract holders in gold and silver start declaring their intentions.  Cash or carry.

Stand and deliver.

SP 500 and NDX Futures Daily Charts - Light Volume Ranging Trade Ends July

GDP came in better than estimates but this was overshadowed by analysis of the big revision of GDP back to 1929.

The Fed came out and said very little except to make dovish noises.

Stocks were all over the place today in light volume as the algos played ping pong. Some stocks had particularly impressive swings.

All eyes are now on Friday's Payroll Report.

NAV Premiums of Certain Precious Metal Trusts and Funds

Gold Daily and Silver Weekly Charts - Heading Into the Storm

The GDP figures for the second quarter will be released in the morning, and the FOMC reports tomorrow afternoon.

Inventories continue to decline at the COMEX ahead of the August delivery period.

Intraday commentary about an apparent run on the bullion banks here.

Will this be the next revelation of the Banks meddling in the markets? US Deepens Scrutiny of Banks' Activities in Commodities

SP 500 and NDX Futures Daily Charts - Summertime, and the Thievin' Is Easy....

The equity markets were treading water today ahead of the GDP release in the morning, and more important FOMC statement tomorrow afternoon.

Non-Farm Payrolls on Friday.

Unstoppable Demand Meets Undeliverable Object - A Run on the Bullion Banks

"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage."

John Kenneth Galbraith, The Age of Uncertainty

If this is accurate, if this is really happening, I think that the effects of this run on the bullion banks are going to hit quite a few people dead cold, like a smack in the face.

That is because there is so little coverage of what is going on in the media, even the internet media.

The gambit of smacking down price to dampen the desire for gold appears to have backfired in a big way by sparking an insatiable demand for the physical metal and a remarkable decline in available inventories. That certainly wasn't what had been expected I would imagine when the process of a more energetic price manipulation in response to Germany's request for the return of its gold began.

That a sovereign nation asked for the return of its own gold being held in custody, and that request was flatly denied, is almost as unbelievable as the fact that so many are willing to take it in stride, like something that would happen every day. 

A seemingly unstoppable force, the flow of gold from west to east, is going to meet the undeliverable object, the nominal inventory of unencumbered gold in the bullion banks and exchanges, sometime over the next twelve months.

Of course one cannot predict exactly what will happen and when, given the phony controversies, obfuscations, and stonewalling that seem to settle like a thick fog over the markets at every treacherous turn in this slowly unfolding financial crisis.  But the math is intriguing.

This is getting very interesting. Let's see what happens. 

Is this what I wish to happen?  No, I would prefer that the markets be transparent, honest, and provide genuine price discovery and allocation of capital with relative rationale decision making open to all market participants.   I think for now the game is badly tilted in favor of insiders and their powerful friends.

I do not believe that there can be a sustainable economic recovery without genuine reform.  A financial disaster is what the financial predators seemingly wish to happen, assuming they even care about the broader effects of their foolish greed.

At some point one would have to anticipate a declaration of force majeure and/or a change in the rules if the financial interests do not relent on their aversion to a market-clearing price.  And when that tide goes out, we will see who is swimming naked.

But there remains plenty of opportunity for more desperate antics, so as always caution is advised , particularly in the use of any leverage and short term time horizons.  This is not a healthy trading environment for the non-professional.  And many a person has gone bust by underestimating the shameless manipulation of the markets when regulation is lax.

The exchanges and the Banks will not fail, because the financiers and their friends make their own rules as they go along, and do not hesitate to act in their own interests, promises and customers be damned.  That seems to be the way of modern finance and monetary theory.  Whatever we say it is, is because we say it is.

The time for debate seems to be coming to an end. Weighed and found wanting.

Stand and deliver.