Physical vs. Paper: The Shanghai Gold Exchange vs. the COMEX

When push comes to shove, the COMEX is only pushing paper.

Weighed, and found wanting.

Shanghai Gold Exchange (SGE)

Weekly Gold Delivery From Vault

The above graph of physical gold delivery out of the Shanghai Gold Exchange (SGE) vaults was prepared by @KoosJansen based on the weekly reports from the Chinese portion of the SGE site. The SGE has confirmed these are deliveries from the vault and the numbers are updated on a weekly basis (each Friday). I will publish the links to the exact Chinese pages next week and will ensure there is updated weekly delivery data available here.

Monthly Physical Delivery From Vault: SGE Versus COMEX

The above graph of monthly gold delivery from vault demonstrates very clearly what many have expressed repeatedly on sites such as KingWorldNews -- the COMEX is a paper gold market while the SGE is quite clearly a world class market for physical gold.

Source: GoldMiner Pulse

Gold Daily and Silver Weekly Charts - FOMC Next Week

Silver stood like a champ today, resisting the early efforts that took gold lower.

And both came back into the close for modest gains, even while stocks turned in a losing week.

FOMC has a two day meeting next week. This will provide a nice opportunity for the scare tactics of the Wall Street insiders.  And perhaps for some of us who see things as they are.

See you Sunday evening.

SP 500 and NDX Futures Daily Charts - Eyes Wide Shut

I enjoyed this commentary from Yves: Is the Fed Going to Dial Down Its Taper Talk?

There is a two day FOMC meeting next week that is most likely to be an opportunity for speculation and jawboning.

Have a pleasant weekend.

NAV Premiums of Certain Precious Metal Trusts and Funds

Plenty of gloom in the premiums which are all negative, but so far the traditional Friday bughunt has failed to materialize. It was getting a little ridiculous, like stock 'Rally Tuesday.'

Next week is the FOMC meeting, a two day affair. Perhaps they are saving their ammo.

Russia Calls For IMF Overhaul

The BRICs can call for whatever they wish, but until they find some way to apply more effective pressure on the Anglo-American banking cartel and their politicians, they are not going to get much of anything.

Their own people cannot get much of anything in the way of reform in the status quo. 

RiaNovosti
Russia’s Putin Calls for IMF Overhaul, Bigger Role for BRICS

MOSCOW, June 14 (RIA Novosti) – Russia will use its presidency of the G20 to push for a radical overhaul of the International Monetary Fund and changes to its voting system to give developing economies a stronger voice, President Vladimir Putin said Thursday in an interview with RIA Novosti.

“The IMF frequently fails to keep up with the rapidly changing situation in global finance – first and foremost, in making effective and timely decisions,” Putin said in answers to written questions, adding that the decisions’ “implementation leaves much to be desired as well.”

Russia currently holds the rotating presidency of the G20, a formal grouping of the world’s 20 most powerful economies, and will lead the G8, a group of the world’s eight richest countries, in 2014.

Putin did not call for the outright dissolution of the IMF, but argued that the organization must adjust to “current economic realities” and said it was time to consider the issue of its “overall reorganization.”

In particular, he said that the voting system used at the IMF to determine policy should be changed to “enhance the role of developing countries,” with new weight given to the so-called BRICS group of Brazil, Russia, India, China and South Africa...

Read the rest here.

Gold Daily and Silver Weekly Charts - Watch for Price Shoving After Europe Goes to Bed Tomorrow

FOMC next week.

A late day rally in the metals and stocks was caused by a Fed mouthpiece implying that they would not be ending QE anytime soon, taper or not.

Until the FOMC meeting confirms this, or not, then it will largely be a technical trade.

Lately the wiseguys have been hitting the metals on the Comex after Europe goes to bed.

Let's see if that still works, or if it has become a crowded trade.

I see where John Hathaway says that Gold Will Shock World With $1,000 Rapid Advance.  Shut up!

It would certainly be a topic of conversation to say the least.  Stranger things have happened. Bill Clinton was just named 'Father of the Year.'   You can't make this stuff up.

SP 500 and NDX Futures Daily Charts - Wax On, Wax Off - $yria

My own take is that today was a 'technical trading day.' The economic news of this morning was 'so-so' if you take a closer look at it.

After the sell off for the past two days, and the big losses on the Nikkei overnight, the wiseguys saw an opportunity for a near term short squeeze when the futures we able to hold 1610. So they ran it right back to the top of the short term downtrend channel.  It is easy to shove prices around in these lightly participated markets.

Wax on, wax off.

Tomorrow we get PPI and Michigan sentiment. As a reminder, the wealthy will get the Consumer sentiment reading about five minutes before you do.

FOMC next week and that will weigh on the markets.