Friday, November 15, 2013

Jesse: COMEX Registered Gold Falls To 587,235 Ounces - Claims At 63 To 1 GLD, MUX, TNR.v, GDX


  It looks like that any guessing about The Taper, QE and FED's further actions can not print more Gold for COMEX. Jesse reports that registered Gold falls to 587,235 ounces and leverage in Fractional Gold Reserve System has reached another record high of 63.

Bitcoin Heist And Jim Rickards On Taper, Janet Yellen and Gold GLD, MUX, TNR.v, GDX

  "In this very interesting episode RT is reporting about the hunger for the FIAT Currencies alternatives and how it is driving the Bitcoin Bubble, but it is not The New Gold or even close to it - as we have written before. New security concerns are reported with the cryptocurremcy and Jim Rickards dissects the Currency War situation in the ECB, BOJ and FED race to the bottom. You will find out why Janet Yellen can not Taper and what is behind the Gold and why Gold Standard is still valuable option even today. 
  After our yesterday US dollar chart observations it has fallen out of bed so far today - maybe somebody already has received Janet Yellen's testimony for tomorrow's nomination hearing."

Jesse: COMEX Claims Per Deliverable Ounce Up Again To 62 GLD, MUX, TNR.v, GDX

 "Jesse reports that in Fractional Gold Reserve System the leverage has reached the all-time-high of 62 owners per ounce of Gold. With Janet Yellen set for hearing tomorrow we can expect another hit and run Gold accident in the DC area, but so far US Dollar has fallen out of bed today and Gold is holding up at its four weeks low. Where LBMA is going to get the physical Gold for delivery at this level of prices? We doubt that China will accept Bitcoin instead of Gold for its currency reserves any time soon."

Jesse's Cafe Americain:

There was a rather large adjustment into eligible gold storage at the HSBC warehouse as 51,617 ounces left the deliverable 'registered' category.

This is not such a big short term issue since November is a' non-active delivery month' for the Comex precious metals futures markets.

But in fact there is so little actual physical delivery activity taking place there anymore, even in an 'active month,' that one might argue that the New York metals market is approaching practical insignificance, long before it can reach the storiedpermanent backwardation.

However, one must keep up appearances, since the Comex still effectively sets the metals price for much of the free world, if only aspirationally these days for Asia.

More charts will be added as they are updated later this evening.

Earlier today in a piece about price premiums in India I included a link to the online section of Charles Mackay's Extraordinary Popular Delusions and the Madness of Crowds.

You might want to have a quick glance over the chapter regarding John Law's highly innovative dalliance into the théorie monétaire moderne that was adopted by the nation of France, almost to the point of its demise.  It is a useful reminder that truly, there is nothing new under the sun.

As theoretical as all these pricing antics and market manipulations might seem, exercises in price setting for personal greed or policy considerations have real world consequences, especially when they are applied over long periods of time, and with some resort to coercion.

The longer that valuations are maintained against the market, the stronger the coercion to sutain them must become, to the demise of freedom, and the point of exhaustion and collapse.   The Soviet ruble is a possible case study for what happens when the unsustainable meets the inevitable, even with a hairy knuckled police state backing it up. 

We might start thinking about 2014 as the year of financial consequences.

Weighed, and found wanting.

Stand and deliver.

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