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On Wednesday’s broadcast of MSNBC’s “The Last Word,” host Lawrence O’Donnell retracted and apologized for a report that President Trump had received loans that were co-signed by Russian oligarchs. O’Donnell said, “Last night, on this show, I discussed information that
Wow. That’s an oldie. I’ve got the same copy around here somewhere; haven’t seen it in years.
Platinum was up $40. today. I own one ounce of phiz which I bought last week. It just looks cheap compared to gold and paladium. Something is going on in the world economy.
History always repeats itself but never repeats itself exactly. We now have several direct correlations to the late 1920’s. The biggest difference this time is the US Government is broke. During the 1930’s, the government had little debt so they could “prime the pump” of the economy by various public works projects.
We now appear to be at the point of money supply contraction or helicopter money. The 21st century “Teapot dome scandal” is about to unravel or will be buried forever. The ticking debt bomb is about to reset. Volatility is slowly working up to frenzy stage. Anybody notice the cattle market lately?
Be nimble my friends. There is going to be a lot of collateral damage to people who thought they had no exposure.
rno, ready for the barter system to be resurrected!
James Mc…
Shorting September will be like holding a lit stick of dynamite
Bill,
In another bizarro moment yesterday’s gold preliminary open showed an increase of 24,192, but the final OI shrunk to +7,321. Also odd was the EFP’s coming in at an even 10,000 contracts, of which 9,053 were in the Dec. contract. The cartel has now added 40,697 contracts in just the past 4 trading days, not counting the additional monstrous EFP’s. During that time gold went up $29.00, or just under 2%. We can only speculate as to how high gold would have risen without the onslaught of cartel shorts. I’d say +$150-$200 would be for starters. Odd too that yesterday’s preliminary OI showed a very large portion of the increase was in the October contract, but when the final OI was published it ALL just went away.
The silver shorts are still present, but FAR more timid than gold. Since May 28 silver has risen over $4, from $14.51 to $18.60 basis December, with total silver open interest also having risen by 22,000 contracts. Translated the silver shorts are now offsides to the tune of approx. $4.8 billion dollars. Gold in the same time has went up $260, with shorts adding a whopping 128,000 contracts. Gold shorts are now offsides by approx. $16.5 billion. That’s a combined $21.3 billion hit to precious metal short positions. Granted the shorts no doubt had profits rolling back on May 28 so some of the losses are essentially givebacks, and COT changes would allow for some exiting of positions. Nonetheless this is still significant damage which only deep pocket banksters could take on. What other short could be on the wrong end of a 20-30% move higher and not only NOT cover, but keep ADDING to their positions? Only one with “the full faith and credit”…… along with the CTRL-P button.
Rate cuts, QEmore, NIRPfest, inverted yield curves, and a Dow not pricing in anything other than going higher. THAT’s the perfect environment for precious metals. We might eventually get a pullback. Will the pullback get bought? You betcha. Shorting September will be like holding a lit stick of dynamite.
James Mc
Intriguing input from James, as usual. Right on the money as to why gold and silver ought to be on fire in September.
You have to wonder if The Gold Cartel forces are ever going to cover their shorts, and if they do, who will be the sellers? In terms of their massive losses at the moment think about what they made time and time again these past years, flushing out spec longs over and over and over.
The gold price suppression scheme has always been a US operation, which is one reason why gold in dollars is not in all-time high ground. Compared to other financial markets, gold and silver are tiny. But how much money is The Gold Cartel willing to lose in these markets right now to maintain financial stability, to their way of thinking? Clearly, our long awaited Tipping Point has been reached in which THEY can no longer get away with their manipulation as in the past.
There has been endless talk about the Chinese and gold for eons now. One thing is clear, if the Chinese want to create some chaos for the US, they can utilize their own cabal forces to buy up the precious metals physical markets (probably have been) to help put pressure on the US trade situation. Wouldn’t surprise our camp if they aren’t the ones who changed the silver picture.
The gold/silver ratio has now fallen close to 84. If it takes out 80, watch out below.
As the day came to a conclusion on the Comex, gold cut its losses substantially and silver put in an impressive gain. This constructive action occurred with the fear trade gone, as the DOW was up over 200, and the dollar was higher.
Good stuff for our camp. The bums really have a problem.
James Mc in with a post Comex close comment…
While today broke the string of rallies during NY trading hours it still wound up being not too shabby. Silver held strong, and gold recovered nicely. Silver volume approaching 200k again so it’s definitely in play.
I still wonder if the silver strength is due to one specific entity such as Deutsche who is trying to unwind a monster short before the real SHTF.
***
Dirty gold is infiltrating world markets under faked brands
A forgery crisis is quietly roiling the world’s gold industry.
Gold bars fraudulently stamped with the logos of major refineries are being inserted into the global market to launder smuggled or illegal gold, refining and banking executives tell Reuters.
The fakes are hard to detect, making them an ideal fund-runner for narcotics dealers or warlords.
In the last three years, bars worth at least $50m, stamped with Swiss refinery logos but not actually produced by those facilities, have been identified by all four of Switzerland’s leading gold refiners and found in the vaults of JP Morgan Chase & Co, one of the major banks at the heart of the market in bullion, said senior executives at gold refineries, banks and other industry sources.
Four of the executives said at least 1,000 of the bars, of a standard size known as a kilobar for their weight, have been found. That is a small share of the gold industry’s output, which is roughly 2 million to 2.5 million such bars each year. But the forgeries are sophisticated, so thousands more may have gone undetected, according to the head of Switzerland’s biggest refinery.
Taliban says near agreement on U.S. withdrawal from Afghanistan
NO ,and I dont want him to be perfect,just look out for the Countries interest !
Jesus was perfect..Did you see what they did to him ?
I think its another DEAD CAT BOUNCE ,but you are so good at timing,rinse & repeat until it stops working ..! some people make money buying JUNK Bonds,some do it buying distressed property Sam ZELL made millions like that ..Do what your good at ,stick with whats working until it dont work anymore …BUY dead cats and catch them when they Bounce ,if your good at it..
When Bankers are jumping out of windows,think about how to follow them ,there must be money to be made down there !
can rescue the BOND MARKET with Interest rate rise,but it’ll bust the Stock Market and Bankrupt the Budget ,so the question will be WHO gets Blamed .Trump is not going to be the FEDS SCRAPEGOAT ,he’s too smart for that ,so the FED will get blamed and the public will dismember it in retaliation ,goodbye FED….So its a mexican Standoff ,meantime Gold sez I can fix the problem, the Gold price rise is more palliative than a RATE rise,so be it …even though it does long term damage to the FED ,but who cares ? they dont vote ! WE have to get through the election first then we can deal with rates …first things first…SO GOLD gets a free RIDE until the election s over.. Thats all we need ! better yet if Trump gets reelected,he can slash & BURN the budgets and get things back in balance ,put everybody to work ,deport the illegals cut all that expense ,build the Wall .Wages will rise ,budgets will fall ,debt will go down …and we are back to a working ,growing middle Class that pays taxes..instead of getting a welfare check.JOBS come back and the middle class goes back to work…Payroll taxes come back in, Bond payments can be made ,rates can go up modestly ,Bond Market gets saved ,Gold remains part of the budget for stability . IT all works if Trump gets elected,if……if not we got until the election to save ourselves before the monkeys run the ZOO…again…and then the FEDS only choice is raise RATES and start the contraction of the money supply (depression) .Its the choice the fed wants because it keeps them in Power .
gold fell to. $250–do. u. know. what the. FED funds rate was then? In February 1979. it was 10.6%–the rate. rose and in February 1980 it was 16%–so gold rose. WITH rising. rates from 250. to 850
https://www.macrotrends.net/2015/fed-funds-rate-historical-chart
That said…corrections in gold have not been outlawed…I see that. yields are just turning up a tic or two-If we need to correct I hope it won’t be too brutal…
Concur about rates. Gold cannot be stopped by raising rates like they did in the late 70’s. If they do that it will blow up the deficits. That’s why Trump is yelling so hard at Powell about rates, he wants to spend like a drunken sailor but is having problems with financing that debt.
Funny thing is that the Fed seems to have lost control of rates and the bond market, and they are already way behind the curve. Trump is trying to set them up for anything bad that might happen to the economy. I’m not sure the American public is smart enough to understand any of it.
Another pretty good day. If this is all we have to endure in terms of a pullback, I’d say we’re in a very strong bull market.
Allocation, the action or process of allocating or distributing THINGS of need or value.
Unfortunately, between artificial manipulation of the Dollars value, combined with manipulation of futures prices, 90% of which are phantom contracts, combined with algorithms, fake news etc, the values and pricing system has been DISTORTED.
If or when the price DISTORTION of the US Dollar or a commodity that gets too far out of whack, the trend reverses. The prices, if get too high cause less use and more production. If the price gets too LOW? it causes more use or waste and LESS production. For example, odds are the low 72 Dollar caused $145 Oil, with added production, and the $145 Oil caused a glut, leading to $28 a bbl. later on.
Supply and demand takes effect ONLY after the distorted price gets too far out of reality. Eh? 🙂
Dollar Chart note 72 in 2008, also notice the manual adjustment higher in June ’14.
https://www.mrci.com/pdf/dx.pdf
Oil chart, note the distorted $145 high in 2008, and the $28 soon after.
https://www.mrci.com/pdf/cl.pdf
Commodities always trying to fine their “sea legs” 🙂
the price of OIL is a political Question ,,it will be allowed to rise when Iran and Venezuela questions are settled AND Gasoline is allowed to rise AFTER the ELECTION ….
Or a WAR in the straits gets going ,thats why we beefed up the military FIRST thing….destroyers might have to ride SHOTGUN on those tankers for awhile …OH well it all gets so expensive !
Meanwhile back at the Ranch ,keep a lid on those Long Range missals ….,keep JAPAN from rearming,keep S KOREA from caving in to the North with appeasement …Keep Germany from becoming dependent on Russia for energy …..Keep European Union intact without Britain in order to keep Germany from Rearming ..I still cant figure out why TRUMP wanted to be President ! He had a nice easy quiet life ! POWER and ego is more than a mental disease ..its a death wish !
Rates can only go one way, tks to the size of the debt already created. As soon as rates start to rise the game is over, it just becomes a matter of time.
So they have to print, to buy new issuance, to keep rates moving south , as soon as the economy splutters….Bond rates are just front running now.
That said short term, they are way over done…..
HOW they gonna stop this GOLD RALLY ,with what ?> HIGHER Interest RATES ? Its not gonna happen unless they opt for a depression and 20 % unemployment…..Helicopter money wont stop GOLD ! How do you save the Bond Market is the question ? In bankruptsy Court you could make them (The Bond Holders) equity holders in the Stock Market …The Fed buys stocks to prop up the Markets,so they do have Stocks ,they could force the Bondholders to take stocks instead of cash …what then ? What will bond holders do with the stocks when they need income ? GOOD BYE STOCK MARKET ……Restrict the sale of stocks with a 5 year hold period ? (Your money is good,you just have to wait for it.)Whats the time value of money ? Id rather have the BOND and sell it at a discount ..I want the return OF my money when I cant get a return ON my money .! than at least I can buy stocks or GOLD with it…I wont be frozen in time….
I think it was when interest rates were 18 % and Volker put a stop to it.I bought zero coupon Bonds for 150.00 is my best recollection ….the 18 % rate was not sustainable and rates started to fall ,I recall selling them for 1300.00 ,about 9x ..the point of this is we are in the exact opposite situation today ..rates are zero and bond will go to infinity if a fed chief dosent act in the right way .BUT he is in a bad place for someone that has no choice but to use GOLD to stop the BOND crisis thats about to expload. ..a 18 % negative rate will send bonds 10 times higher .His only option is raise the official price of GOLD ,and he better do it before the Market does it for him ,or he’s going to look impotent and useless.I dont think he is going to do it…He’s a Banker ,a paper money freak…so a runaway Bond market with negative rates where you buy a bond that guarantees you will get 18% LESS money at the end of 20 years is not going to happen…GOLD must rise NOW in order to SAVE the BOND MARKET and its bigger than the STOCK MARKET ….HANG ON it going to be a Bumpy ride….RE FINANCING all this debt with almost all of it short term is a big problem.Clinton got us into this mess when his Treasury Secretary refinanced most of our debt from long term debt to short term debt that had lower rates at that time ,in order to make it look like he balanced the budget ,thanks for nothing MR RUBIN…you destroyed the Bond Market …! NOW what ? You destroyed the savers savings ,you destroyed the insurance companies ability to get a return their money ,so now they cant turn a profit and pay for insurance losses .YOU destroyed all Pensions that werent fully funded ! and depended on the earnings from investments that no longer exist ..Thanks Clinton and RUBIN ,you fucked up everything ..
…getting frisky going into the comex closing.
somebody knows something?
somebody doesn’t want to be short overnight?
really wants to knock the crap outa this gold rally…we’re not home free yet…
https://finance.yahoo.com/quote/%5EDJT?ltr=1
That doe not mean the gold rally has to die, though…
I haven’t looked for a planned split in GUSH, just figured it was like all the rest of those ETF’s on steroids. If it were a gold ETF like JNUG or NUGT it would have been split when it approached $10.
Anyhoo, good luck on that, I could see a quick 50% for you easy peasy if they can get this SM jacked up a bit.
Still pretty surprised bonds are rallying here with stocks. Probably helping to keep pm’s afloat today.
If the SM start to get weak into the close we could have a really nice close in pm’s.
didn’t buy it a few weeks ago–then. yesterday I saw it–quite by chance–again in the. 2.70. range and took a chance…not so extraordinary…it jut seemed sold out and possibly double bottoming…and it still could make a new low…but I’ll set my stop and give it every benefit of the doubt…if stocks plunger in sept or october GUSH will probably make a new low…
I think I touted it back then on this forum but I guess no one picked up on it–Looks like I 1st mentioned GUSH on July 22nd=
GUSH’s 4th split took place on May 01, 2017. This was a 2 for 1 split, meaning for each share of GUSH owned pre-split, the shareholder now owned 2 shares. For example, a 50 share position pre-split, became a 100 share position following the split
On April 22nd 2019. GUSH was 13.42—On Oct 1st 2018 it. was 40.36
The whole sector is cheap
When crude is high, GUSH goes high! Last trade is $5.35–I’m not wasting any money on near the money options–either GUSH blows its stack or zthe trade’s a write-off….
GUSH had its last stock split in 2017—on October 11th 2018 GUSH was 40.24
I”m only doing this trade predicated on the possibility of the Gulf “going hot”
is where everything begins and ends …when gold Yields ZERO ,and bonds yield below zero ,,,whats NOT TO LIKE ? buy the higher yield…watch the zero coupon Bond (ZROZ),its going to track where Gold is going to go… JMHO
It looked to me like 2.78 was the LOW…your timing is extraordinary …
I cant react that fast ….If I were ten years younger (81) haha