Arthur Cutten: JPM Holds the Whip Hand on the Comex - Gold Buy Signal GLD, MUX, TNR.v, GDX

  

  

  Arthur Cutten has issued his Buy Signal on Gold. He has a very conservative approach and his article speaks for itself.

Bloomberg: China May Become The Third-largest Holder Of Gold GDX, TNR.v, MUX, GDX

 "Here it comes and a lot of people will be taken totally by surprise. Record buying of Gold by China last year will be translated in the much higher Gold holdings by PBOC. Bloomberg reports that these holdings could surpass now those of Italy and France - Jim Rickards talks about the announcement by Chinese Central Bank of 5,000 t of Gold holdings in the nearest future. It will be the game changer and puts Gold solidly into the investment game as well. Yesterday shock with Jobs numbers can be the sign of the real state of US Economy and it means that FED does not have any real exit strategy from QE permanent state. In another news Royal Mint in UK has run out of gold coins due to the exceptionally high demand."

Jesse's Cafe Americain:

Gold Daily and Silver Weekly Charts - JPM Holds the Whip Hand on the Comex - Buy Signal

About 89,757 ounces of gold bullion left the deliverable category at Brinks, and a similar amount showed up in the eligible inventory at JPM yesterday.  

I do not know who owns the registered gold, since title can be transferred fairly easily.  But it remains fairly clear that JPM was in the driver's seat in stopping most of the deliveries, and now likely holds the 'whip hand' on the Comex in terms of gold.

This brings the overall number of deliverable gold ounces down to 370,137 which is a shockingly low number considering that we are coming into the normally heavy delivery month of February in a few weeks.

Along with a few other indicators this triggers a 'buy signal' for gold in the intermediate term.  This is the first buy signal that I have issued since gold broke out of its cup and handle and ran to its all time high.  This is a 'structural' buy signal that must be confirmed by price and the chart formation.   The price signal will remain active unless gold sets a lower low on price.

I will post something about potential claims per ounce later tonight.

There is sufficient gold in the eligible categories at the bullion banks, and while we do not know who actually 'owns it,' there is a high probability that it will take higher prices to pry that gold into the delivery process in February, at least from profit motivated holders.

Take a look at the distribution of all categories of gold on the Comex.   Brinks and Manfreda have been 'cleaned out,' and the three bullion banks, JPM, HSBC and Scotia Mocatta are the big holders.  This market is now made up of big holders and bag holders.

There is some strong overhead resistance at 1260 which any number of analysts have noted, and there does seem to be an effort to hold the line on price here.

I have marked the most important resistance level, at least from my charting perspective, on the chart in red, just under 1,350 dollars per ounce.  A breakout through 1350 will confirm the buy signal.

February is shaping up to be an interesting month.   The various indicators have come together to signal a buy here but one might wish to wait for confirmation if you wish.  After all, it is a manipulated market.  There might be a rocky road before the precious metals finally break out.

I am now holding a full allocation of trading account gold and am considering adding more on pullbacks.    There are likely to be some vicious pullbacks since the Banks will not wish to have small spec company during the initial leg of this bull market move.  They are just like that.

If the specs jump on the metals here with leverage they are going to get their teeth knocked out.   I was of two minds in writing this, because I do not wish to see amateur traders throwing themselves to the sharks.  But on the other hand sentiment is so bad that perhaps now they will stand aside and take a more measured approach to investing rather than speculating.

It's been a long time coming.  But change is going to come.

Have a pleasant evening.

COMEX Gold Inventories Hit New Low GLD, GDX, MUX, TNR.v

   SRSrocco reports on further deterioration of the COMEX Gold inventories available for deliveries. You can guess who is taking now all deliveries. The game of musical chairs for fractional Gold bullion system has begun. This time it is HSBC taking the heat.

Eric Sprott: "China Bought 60% of Gold Production Last Month, I Am Buying Gold And Silver Stocks Now." MUX, TNR.v

"Price of Gold and Silver will be the main driving forces for all survived companies. Eric has very bold prediction for Gold going to $2400 by next year: "The most important thing in the precious metals business - the price of precious metals. They all go up if the price of Gold will go up. The question is which one will go up 200% or 500%. If the Gold will go up to $2400, I can bet that the Gold miners index goes up 200%. What we are trying to do: where is the one which will go up 1000%."

  This summer we had the capitulation in Gold and Silver stocks with the following turn around and now we are looking to the Eric Sprott and Rick Rule for guidance to run this new Bull. China will play the very important role in this big picture, according to Eric."

SRSrocco Report:

Comex Gold Inventories Hit New Low

It looks like the stagnate two month bottom in the Comex Gold inventories is now over as a huge withdrawal from HSBC has taken the total warehouse stocks to a new low not seen since 2006.

As you can see from the table, 173,358 oz of gold were withdrawn from HSBC’s Eligible category.  While this withdrawal was only 5.5% of HSBC’s Eligible (Customer) inventory, it would have totally wiped out Brinks, HSBC, Scotia Mocatta, and most of JP Morgan’s Registered inventories.

This single withdrawal was more than what most of these individual banks held in their Registered Inventories.  Furthermore, the 173,358 oz withdrawn from HSBC is 5.4 tonnes of gold… now more than likely gone forever from the Comex.

Not only does this large withdrawal from HSBC break the two month flat line bottom, but it also puts the Comex Gold Inventories at a NEW LOW not seen since 2006:

Here we can see in the one month chart below what a huge decline has taken place as it does not fit on the chart.  This chart will not be updated until tomorrow, so I stretched the graph to include the new data point which is now at 6,860,160 oz.

Another surprising trend is taking place on the GLD inventories.  Since the price of gold bottomed in the beginning of July, the level of gold at the GLD is 1,887,419 ounces less even though the price has rallied nearly 12%.

On July 1st, the gold inventory at the GLD stood at 31,131,769 oz while the price of gold bottomed at $1,180.  Today, gold ended the day at $1,323, but the total gold inventory at the GLD is 29,244,351 oz.  For some odd reason, the GLD is not adding gold as readily now that the price has increased compared to how it was drained as the price declined.

There seems to be an orchestrated effort by the Gold Cartel to convince investors not to purchase physical gold.  As I mentioned in a previous article, the World Gold Council has announced the following:

World Gold Council Promoting Gold ETFs with New Program

(Kitco News) - Weak investor demand in gold markets remains a major concern as outflows continue to plague gold-backed exchange-traded funds.

However, the World Gold Council is trying to change investors’ perceptions of the yellow metal with the creation of a new program. On Thursday, the council announced the appointment of William Rhind as the managing director of its new Institutional Investment Program.

According to the WGC, Rhind will be “responsible for developing and implementing initiatives focused on expanding the use of SPDR Gold Shares (NYSE: GLD) and other physical gold-backed products.” GLD is the world’s biggest gold-backed ETF and since the start of the year has seen significant outflows as investors moved out of gold and into better performing equity markets.

Thus, the World Gold Council has appointed Rhind to be “Responsible for developing and implementing initiatives focused on expanding the use of the SPDR Gold Shares and other ETFS” to continue to bamboozle investors into buying worthless paper garbage gold products while making sure that MUMS the word for those who want to purchase physical metal.

There seems to be serious trouble ahead for the bullion banks as their registered inventories are at record lows.  There is no way a withdrawal of this size today could have been met by the bullion banks registered gold inventories.

There will be new updates on the COMEX & Shanghai inventories at the SRSrocco Report."