Monday, July 28, 2014

Gold and Stock Market Updates

Not much has changed in markets. The trend continues: physical gold moves from West to East and the stock market bubble continues.

Below are some noteworthy updates:

1st Half Gold Exports from Switzerland to Asia: 600 Tonnes

Gold flowing to Asia through Switzerland

Western gold goes to Switzerland where its refined from 400oz bars of .999 purity to Kilobars of .9999 purity then on to China via Hong Kong.

Gold exports from Switzerland to Asian countries

NYSE Margin Debt Storms Back To All Time Highs

Sharp falls in China's once-booming property market

A farmer walks in front of a construction site of new residential buildings in Hangzhou, China

Banks accused of rigging silver price

Deutsche Bank, HSBC and Bank of Nova Scotia have been accused of attempting to rig the price of silver, in a lawsuit filed in the US.
The plaintiff alleges the banks, which set the price of silver each day, abused their position in the market.
Deutsche Bank and HSBC have not commented on the filing, while Bank of Nova Scotia told Bloomberg news agency it would "vigorously defend" itself.
The lawsuit follows similar filings in the gold price-fixing market.
 Maguire: CME colluded to save banks short gold

 These bearish bullion banks have bet billions of dollars on gold and silver closing below $1,300 gold and $20 silver.  And with the CME assisting them in rigging the casino, these bets are almost always going to pay off....

“With the physical markets indisputably strong now, and the balance of power shifting over to the Eastern markets, the physical market is beginning to dictate what the synthetic market can do.  It’s events like option expiry that are the only easy opportunities left where the Comex tail can still actually wag the physical market dog.  And this is a sign of the weakening hold that these collusive banks hold over gold and silver.

The game is so obvious that these sovereign and central bank buyers are rewarded by sitting back and waiting for these banks to defend billions of dollars of paper bets as it gives them (the sovereign buyers) a monthly opportunity to accumulate large bullion at a discount.  And that is exactly what we’ve been seeing.

Now, while the likes of Goldman Sachs are focused on these billions of dollars of short term derivatives profits, and we also see the Fed very happy to see gold capped to a slower ascent than it would be, Goldman Sachs are happy to let the Fed take the risks in the physical markets as they know that their naked short positions are ultimately going to be bailed out (by the Fed).  But the other bearish banks who are coat-tailing the likes of Goldman Sachs will not be bailed out.  And when we get the reset, they are going to suffer enormous losses.  This is going to be fuel for an enormous reset higher (in the price of gold).

So let’s look at the footprints as the bullion banks found themselves heavily offside on their bets just two weeks ago:  On Friday the 11th, Goldman Sachs and these other swaps dealers were deeply underwater on their derivatives positions.  And if you recall, gold closed that week at around $1,345.  That was an area dangerously close to large stops that they had, just $15 to $20 higher. 

The billions of dollars of bearish options bets against gold closing above $1,300 in both Comex and the over the counter markets were grossly offside.  But added to that, the COT Report we received on that Friday captured them almost all-in short -- close to record levels.  Their backs were against the wall, so something had to be done.  This is often when we see official assistance and the full court press being brought to bear to prevent an imminent breach of these very large naked short bets that would have seen the $1,400s realized very quickly (in gold).

It comes as no surprise that the CME made an announcement that very evening that they were reducing margin requirements for gold and silver futures.  Let’s think about that for a minute Eric:  Naked short bets structurally within $20 to $30 of capitulation, (bullish) geopolitical events unfolding, and a bullish uptrend in the strong physical market.  So what happened?  The polar opposite of what we saw when the funds were long futures at $49 silver and $1,900 gold.  Back then, with the funds naked long, the CME increased margin levels several times in a row to force out long positions. 

This time the funds still had dry powder to buy.  So With the bullion banks dangerously backed up against the resistance in a rising market, the CME accommodated these desperate banks by reducing margins into higher prices, at the very point these multi-billion dollar bets became vulnerable to a major squeeze. 

Now, had there not been CME and official interference on Monday the 14th, this bank would have been nursing large precious metal losses and we would have had a $1,400+ handle (on gold) while we were talking now.  I mention the CME because this criminal organization can be relied upon to jump to the tune of their largest clients all the time.”

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