Thursday, September 9, 2010

The Advancing Army Of Physical Metal Demand

With Gold scratching at $1260, Silver clawing at $20, and the HUI GOLD BUGS INDEX sniffing 500, whats a bullion bank criminal supposed to do? Cheat!

With ever increasing amounts of paper Gold and Silver being sold by the bullion banks, none of it backed by physical bullion, the CRIMEX goons have their backs pressed right up against the wall. They are trapped. There demise all but certain. Will they be allowed to default by their government backers, or will the government ride to their rescue with a rules change for settlement? No bother. A rules change will simply confirm the lack of supply to meet demand, and a mushroom cloud will replace the CRIMEX. Deceit inevitably ends in destruction.

Every conniving effort is being made as I type this to break Gold. Gold obviously wants to stretch its legs here, but the bullion banks keep hitting it below the knees. This is Gold's season to soar, and the CRIMEX Rat Bastids know this. They appear prepared to give up their existence as functioning banks in an effort to prevent the inevitable.

The open interest on the gold comex rose again in fine fashion up a huge 5437 contracts to 585,564. The gold comex OI is coming close to its all time high of around 609,000

The silver comex OI rose as well, closing today (basis yesterday) at 139522 up a huge 1726 contracts.

With both gold and silver both exhibiting outside day reversals, the increase in OI must show the banking cartel trying to cover but cannot due to the swift rise
in metal prices. No doubt the huge strength in physical purchases from London has a lot to do with the comex price strength.

Evidence of declining LBMA volume means that buyers are not rolling but taking delivery of their physical metal. With a higher degree of leverage to the tune of 100: 1 you can bet the farm that banking cartel are very nervous that they will not be able to service the advancing army of physical metal demand.
-Harvey Organ, Sept 8, The Daily Gold & Silver Report

In other words, this precious metals scam is on the verge of being crushed...and the US Dollar along with it.

BLS BS: Jobless Claims Data Released Today Was A Complete Farce
By Dave Kranzler
"Nothing is but what is not" (Macbeth, Act 1, Scene 3).

True Orwellian deception once again rules the day. The stock market is bouncing with vigor on the weekly jobless claims report, which showed about 27k less new jobless claim filings than was expected.

But let's examine the report itself to see what's going on. Because of the holiday week, NINE States ended up not reporting their jobless claims, including California. The jobless claims number reported was estimated for these 9 States. That completely invalidates, from a statistical sampling context, anything reported and celebrated (how the hell do you celebrate a few less claims for unemployment welfare than was expected anyway?). As Bloomberg reports:

For the latest reporting week, nine states didn’t file claims data to the Labor Department in Washington because of the federal holiday earlier this week, a Labor Department official told reporters. As a result, California and Virginia estimated their figures and the U.S. government estimated the other seven, the official said. (Here's the article link: Another Govt Joke)
I really don't think this situation requires my editorial rhetoric. It stands out by itself as yet another example of the ways in which our Government goes to great lengths in order to hide the truth and proliferate deception and lies. As a matter fact, the Truth about this jobless claims report was not even contained in the actual BLS news release, as you can see for yourself: BLS BS. As you can see from the Bloomberg news release, the Truth was revealed in the media interview of the BLS official. Very few people who follow the news will ever see this subtely.

The most irritating and absurd aspect of this is that Obama was elected on a platform in which he promised more transparency and truth in Goverment. Not only has Obama completely failed in this regard, he is actually more deceitful than his predecessor. It just gets worse as time goes on. The system is completely broken and the continuous and inexorable descent into complete Orwellian Totalitarianism is occurring irrespective of which political party is in power.

Please do have Hope for anything to Change when the voters hand Congress back to the Republicans in November. The best outcome of that will be to neutralize Obama. President Obama becomes Lame Duck Obama and good riddance to Nancy as the capo di tutti capi of the House.

Yuan Trading Against Russian Ruble Said to Start Within Weeks in Shanghai
China and Russia plan to start trading in each other’s currencies as the world’s second-biggest energy consumer and the largest energy supplier seek to diminish the dollar’s role in global trade.

China may start trading its currency against the ruble within weeks, three bankers with knowledge of the matter told Bloomberg, and sent out a document last week allowing lenders to apply for ruble trading licenses, one of them said. Russia’s Micex Stock Exchange is making preparations to trade the ruble against the yuan in an initiative that has the backing of the country’s central bank, Ruben Aganbegyan, the head of the bourse, told reporters at a conference in Moscow today.

“Given the risk to the dollar and U.S. assets from their fiscal position they want to reduce their dependence on the dollar as an invoicing currency,” Bhanu Baweja, global head of emerging markets fixed income, currency and credit research at UBS AG, said in a phone interview from London. “It makes sense for two large economies to exclude a third, overly dominant economy from their trading equation.”

In the wake of the global financial crisis, which forced the U.S. economy into recession, both China and Russia have called for the dollar’s role in the financial system to be diluted. Volatility in major currencies is putting the global recovery at risk Zhang Ping, the head of China’s National Development and Reform Commission, said last month. President Dmitry Medvedev last year suggested Russia, holder of the world’s third-largest foreign-currency reserves, reduce its holdings of dollar.

Economists cut U.S. growth forecast again
WASHINGTON (Reuters) - Projected U.S. economic growth for the rest of this year and next was revised down for a third month in a row by a panel of about 50 economists.

The latest Blue Chip Economic Indicators report on Thursday said the weaker outlook for second-half 2010 growth stemmed from lower expectations for consumer spending, business investment and private construction.

"Growth in the current quarter now is expected to be little better than the disappointingly soft advance registered last quarter," the survey said. Gross domestic product grew at a meager 1.6 percent annual rate in the second quarter, less than half the first quarter's 3.7 percent rate.

But the economists' group said that, after the mid-year soft patch, it saw a gradual improving trend setting in with growth slightly surpassing trend rate in the second half of 2011.

Blue Chip defines GDP trend growth at about 2-3/4 percent a year.

"For all of 2010, real GDP now is forecast to increase 2.7 percent on a year-to-year basis, 0.2 of a percentage point less than a month ago and 0.6 of a point less than predicted in June," the survey said.

Its consensus forecast for real GDP growth in 2011 was cut by 0.3 of a percentage point from a month ago to 2.5 percent.

"Given the depth of the recession, a forecast of roughly trend growth this year and next amounts to a very disappointing pace of recovery, with little progress expected to be made in lowering the unemployment rate," the forecast said.

Obama's Summer Of Recovery looks more and more like a summer of lost hope. Why else would he be touting a new "spending initiative" [stimulus package is now a dirty word in Washington]? Recall Obama "promise" to cut the deficit in half in 6 years. It would take annual growth of 5.5% to have even a remote chance of pulling that off. I guess he can toss that promise onto the growing pile of "promises not kept".

Right on cue as the London markets close, Gold and Silver are getting hit by the CRIMEX goons this morning. The fools that fall for these crooks games are more to blame for our disgust with the NY CRIMEX than the crooks themselves. However, I suspect, and have suspected for a long time, that the CRIMEX is more "the left hand trading with the right hand" than actual "outsiders" trading with the bullion banks. The left hand trades with the right to give "the appearance" of weakness in the Gold and Silver market...all in an effort to steal the "outsider's" bullion as they panic at the illusion of weakness presented before them.

The CME Delivery Report yesterday showed that zero gold and 148 silver contracts were posted for delivery on Friday. JPMorgan was the big issuer in its client account... and the big stopper in its proprietary trading account. Out of one pocket and into another!
-Ed Steer's Gold & Silver Daily

Buy weakness aggressively. Be right and sit tight. The end is growing closer for these CRIMEX Rat Bastids.

Rare Trading Action, Explosion Imminent
By Eric King
Gold is attacking $1,260 in European trading and silver is moving towards $20. In a telephone interview with King World News from Spain, Turk, being a true veteran of these markets was able to follow up last week’s comments with more compelling observations:

September 8, 2010

James Turk: “Friday’s action was confirmation that the pattern has changed. Yesterday’s action verified that as well, as the dips were bought aggressively, and there is still this strong demand for physical metal at these levels.”

“The big money recognizes that the train is leaving the station. Every dip they are in there acquiring physical metal and this also substantiates that the pattern has in fact changed.”

“There is one last thing I would like to say about this pattern and this is why I keep coming back to it. This is exactly the type of trading action you would expect to see before the big breakout.”

“So, I am still expecting that upside explosion in silver as soon as we get above $20.5 to $21.”

“The action in gold is consistent with what is happening in silver, which also confirms it will break into new high ground as well.”

“In fact, gold is already there as we had an all-time record closing high yesterday in New York.”

When asked about the rarity of this type of trading pattern Turk responded, “It is very rare to see this type of trading action, and therefore you know it’s special because it means prices are about ready to take off to the upside.”

James is continuing to note the importance of the change in the trading habits of both gold and silver. Pullbacks are proving to be short and shallow in the metals and then the markets immediately turn higher. This certainly is aggressive action and as James said, “The train is leaving the station.”,_Explosion_Imminent.html

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