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Loading ...Monday, January 28 2019
By GCRU Gold News on Monday, January 28 2019, 01:29
“Interestingly, we just polled 4,000 Bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to Bitcoin and now it’s going the other way.”
“Not only have we lost all liquidity on the underlying commodity but truly outside of the existential blockchain argument, it’s been very difficult to argue store of value which is really what we started hearing about. Gold is a store of value and there’s no disputing that.”
The metals this morning, Wednesday, Sept. 11, 2019
I am showing only silver, although the pattern is similar for gold. Silver is more volatile and therefore displays price changes better. Last night and this morning, the Chinese returned to the metals on the buy side. You can see this last night (red line) with a surge of ten cents upon the opening of the SGE at 9:30 pm, although silver firmed all day yesterday. The buying continued into this morning (green line) and we now wait for the market to eliminate any gap up by opening at $18.10. From there on, it’s up to that whale who has been buying silver or other idiots who are still hanging on to the wrong end of that huge Open Interest in COMEX silver to cover their exposure.
Silver may be above its cost of production by a dollar or so, but it is still dirt cheap at barely above half what it was priced at 39 years ago when it sold for $34 in dollars twelve to fifteen times worth more. To put the inflation adjustment back in for today’s tiny dollars, the price of silver needs to be at least $400 per ounce just to equal the average price for 1980. So this ‘rally’ in silver prices does not impress. In fact, it is a cruel joke. The reason silver is still down here under $20 is because COMEX and London are selling infinite volumes of paper silver to drown any advance in paper silver. Last Friday, COMEX sold a BILLION ounces of paper silver to quash the silver market. They did this to block an immanent breach of $21 in the spot market that might have initiated a buying frenzy in paper silver on COMEX.
All of this selling is designed to block the real breakout for silver that resides above $21. I watched a video yesterday with Chris Marcus in which $800 silver was quoted as a price goal for silver. That did not overly impress me either. A day’s average wage in 1900 was a tenth ounce of silver for an American. An average day’s wage today is $250. To reach that 1900 valuation for silver, simple arithmetic requires a present price of $2500 per ounce. Even if you back calculate inflation to 1970, the price of silver must rise 50 fold from it’s 1970 level. Since the price of silver was about $1.80 U.S. in 1970, that implies a present value of $90 but realize that the 1970 price had been fixed by the Treasury department using sales from the strategic stockpiles. These were exhausted by 2006. Essentially, silver has had its price imposed by Anglo-American interests for all of the 20th century. One has to wonder why.
Harvey Organ believes if silver blows up to its real fair value, it will take down the entire financial system, starting with the big banks who are mega short silver. Given the efforts being exerted to suppress the silver market, I have to wonder if Harvey’s conclusion may be valid. The effort to suppress silver is far greater than the effort to suppress gold. Just look at the silver open interest on COMEX compared to world stockpiles. COMEX alone has shorted more silver than exists in all world stockpiles and that’s just the open interest, not the total volume of selling. So, there is something really wrong with the Western centric financial system, and it seems to be related to silver. As a general rule, all of the world’s derivative silver markets sell the total above ground stockpiles of silver EVERY DAY. So, what is it about silver that requires a blitzkrieg of selling every day to keep its price suppressed? Rhody
Fed Still Working Against President Trump – John Williams
By Greg HunterOn September 11, 2019
Economist John Williams says the Fed is still not in President Trump’s corner when it comes to the economy.
Williams says the real numbers say the economy is getting worse and not better. Williams thinks “The Fed is going to feel pressure to cut interest rates .5%” and not .25% that Fed Head Jay Powell has been indicating. Williams also thinks the Fed is going to feel pressure to start a “new round of QE.” Why? Williams says, “First of all, the economy is that weak. I am seeing it in the numbers, and I am sure they (Fed) are too. . . . The headline numbers that you hear are bloated, and they know it. . . . Construction spending is a lot weaker than reported. . . . So, we know the GDP is overstated. . . . They just reduced payroll employment . . . They overestimated payroll growth by 501,000. This eliminates 20% of the employment growth you have seen in the last year. . . . This also will be reflected in the GDP, and it will continue to get weaker. The Fed should be recognizing they have some bad numbers here. I think you are going to see retail sales numbers weaken. They will be out later this week, and also industrial manufacturing numbers will be weaker. They will be out next week. This is all before the FOMC (Federal Open Market Committee) meeting. The economy is weak enough that they’ve got to do something that will stimulate the economy by cutting more than a quarter point. There is a fair shot they go a half point (cut) and if not, they will be easing again soon. As things turn more negative, they are going to have to turn back to quantitative easing (money printing).”
Contrary to mainstream media propaganda, the tanking economy is clearly the Fed’s fault. Williams points out, “When the Fed started tightening quarter after quarter, which started in 2017, and at that point, the interest rate was 1.5% for targeted Fed Funds. When we finished 2018 in December, they were up to 2.5%. The underlying interest rate there had been doubled in a year. That’s not gradual and non-disruptive to the economy. It’s very rapid and turned out to be very disruptive. . . . When they (Fed) said they were going to raise rates another couple of times in 2019, which is when the market crashed, that was around Christmas time, and then all of a sudden, they start backing off.”
In closing, Williams says, “The Fed is not just working against the President. It is working against the interests of the American people. What the Fed was doing was in the best interest of the banking system, and the banks own the Federal Reserve. There’s a conflict of interest right there. . . . . I think you are going to see that the downturn here is pretty bad. It’s not just a little softening in the economy.”
Join Greg Hunter as he goes One-on-On with economist John Williams, the founder of ShadowStats.com.
https://www.naturalnews.com/2019-09-11-remembering-911-and-the-criminal-neocons.html
Anyone attempting to pick a re-entry for silver is merely GUESSING so my GUESS is $17.50 then $15.50. The “triple L” (Late Long Liquidation) gang are now in serious trouble
As a PM permabull, I have made the transformation this evening from bearish to neutral on the precious metals…RSI numbers in the 30’s and 40’s for the gold and gold miner ETF’s. Not a buyer just yet but looking to begin nibbling if (and only if) we get more weakness…
Justices Sonia Sotomayor and Ruth Bader Ginsburg dissented. Even though they know their scamming the system for economic reasons. Never mind if they may be descendent s of the same disasters or worse but will let it happen here.
U.S. Supreme Court backs Trump on asylum crackdown
(Reuters) – The U.S. Supreme Court on Wednesday granted a request by President Donald Trump’s administration to fully enforce a new rule that would curtail asylum applications by immigrants at the U.S.-Mexico border, a key element of his hardline immigration policies.
The court said the rule, which requires most immigrants who want asylum to first seek safe haven in a third country through which they traveled on their way to the United States, could go into effect as litigation challenging its legality continues.
Liberal Justices Sonia Sotomayor and Ruth Bader Ginsburg dissented.
Kind of like everyone knows the stock market is a scam yet no one will ever talk about it. And now the Epstein situation. Just too many powerful people that could get hurt?
Lol
Definitely worth the 10 minutes of this video to understand that even those on the commission knew it was a cover-up from the start.
but not so bad for the metals. Could have and probably should have been a lot worse.
Hope we’re trying to find a bottom here around $1500 but would feel a lot better about it if the shares were leading.
lends confidence to anyone adding on or opening a new position in G&S within this time frame.
Sounds like your son is not a licensed contractor or he did not follow the fine print that said “must be installed by certified contractor” .
I’m not trying to create churn here, its just that I am also qualified in many ways but still had to hire a professional to sign-off on my self installed array. Without that signature, which cost me one Silver eagle, I would not have gotten my buyback agreement from the utility.
The real sad part is when I sold the house the flipper buyer said “get that crap off the roof” and threw most of it in the dumpster even though I had a transferable buyback contract at $0.205 per kWh.
Chinese lithium miner Tianqi, one of the world’s top producers of the white metal, has shelved plans to complete a A$300 million ($205m) second phase expansion at the world’s largest lithium hydroxide plant as an oversupply of the commodity continues to drive down prices.
I’m pretty sure we’ll see that $5K in our lifetimes. Hopefully not with a $50 loaf of bread.
Oil Tumbles On Report Trump Discussed Easing Iran Sanctions, Leading To Bolton Eruption And Subsequent Termination
WTI crude was sliding after mixed inventory data, but accelerated the losses, breaking below yesterday’s lows, after headlines suggesting Bolton was fired after disagreeing with Trump’s desire to ease Iran sanctions to get a meeting with Rouhani.
As Bloomberg reports, President Trump discussed easing sanctions on Iran to help secure a meeting with Iranian President Hassan Rouhani later this month, prompting now former National Security Advisor John Bolton to erupt, and “argue forcefully” against such a step, according to the report.
More notably, there already was support for de-escalation of sanctions with Iran, because during the Monday Oval Office meeting, Treasury Secretary Steven Mnuchin voiced his support for the move as a way to restart negotiations with Iran, the Bloomberg sources said. At this point, Bolton exploded.
“Bolton made sure to block any and all avenues for diplomacy w/ Iran, including a plan being brokered by Macron,” Suzanne DiMaggio, a senior fellow at the Carnegie Endowment for International Peace, said on Twitter.
“The French are offering Trump a facing-saving way out of a mess of his creation. He should grab it.”
https://www.zerohedge.com/energy/oil-prices-plunge-after-trump-iran-sanctions-headlines
put Solar panels on his house because the electric company had agreed to buy excess electricity from him .and gave a TAX credit …He installed it himself as he is a qualified Electrical Engineer and Physicist PHD.So it worked for a while .NOW the electric company refuses to buy the excess electricity from him,refuses to pay the rate originally quoted him.AND hit him with a minimum bill even though he generates electric in excess of what he uses. and they took the tax credit away..thats Kalifornia for ya…
Thousands of people who bought solar panels have complained to a financial watchdog that they are not bringing them the returns they were promised.
Not sure why, but I guess it doesn’t matter. Everything is working against pm’s yet they are still going higher.
I’ll take it.
treefrog – $5K works for me… 🙂
