Gold Bottom Is In! India Now In A Gold Buying FRENZY!

[mamboni]

I'm calling the gold bottom at the Fibonacci retracement at $1330. More importantly, this drop in gold has ignited a buying frenzy in India, the world's biggest gold consumer. Folks, the bankers would have to be absolutley suicidal to conduct another raid thinking Indians will stop buying gold to wait for a bottom - it ain't gonna happen. The bottom is in. And I think gold could easily end the year up. Damn straight!


India's Response To The Gold Sell Off: A Massive Buying Frenzy


http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://gold-silver.us/users/tyler-durden)
Submitted by Tyler Durden (http://gold-silver.us/users/tyler-durden) on 04/16/2013 22:35 -0400



Bank of America (http://gold-silver.us/taxonomy_vtn/term/7841)
Bank of America (http://gold-silver.us/taxonomy_vtn/term/113)
BLS (http://gold-silver.us/taxonomy_vtn/term/10937)
Bureau of Labor Statistics (http://gold-silver.us/taxonomy_vtn/term/9225)
Central Banks (http://gold-silver.us/taxonomy_vtn/term/10130)
Fail (http://gold-silver.us/taxonomy_vtn/term/9344)
Greece (http://gold-silver.us/taxonomy_vtn/term/11787)
India (http://gold-silver.us/taxonomy_vtn/term/10673)
Portugal (http://gold-silver.us/taxonomy_vtn/term/8729)
Reality (http://gold-silver.us/taxonomy_vtn/term/12218)



Panic, depression, rage, suicidal ideations: watching the US mainstream media, one would think that these are the prevailing sentiments among those who unlike the prevailing "developed world" speculative class, are invested most heavily in physical old - Indians, who collectively comprise the largest end-demand consumer segment for gold products. One would be very wrong.
Because while apparently it is incomprehensible to the "sophisticated" financial crowd in the US that someone may have conviction in their beliefs, and not just lunge from extreme to another, merely riding momentum and technicals like so many "professional" investors, Indians are doing precisely what a buyer should do when the price of the desired product plunges: doubling down, literally.


Bloomberg reports (http://www.bloomberg.com/news/2013-04-16/gold-bears-scarce-in-india-as-selloff-lures-shoppers-to-bazaars.html)of the immediate aftermath to the past few days' gold plunge: "Gold buyers in India, the world’s biggest consumer, are flocking to stores to buy jewelry and coins, betting a selloff that plunged bullion to a two-year low may be overdone." Wait, so instead of jumping out off high buildings, Indians are being cool, calm and collected and... buying more? Unpossible. Do they not get CNBC in Mumbai? Apparently not: "My daughter is just six months old, but I think it is never too early to buy gold,” said Sharmila Shirodkar, a 28- year-old housewife, while displaying a new pair of earrings she bought from a store in Mumbai’s Zaveri Bazaar. “I had been asking my husband every day if prices will go down more. I couldn’t wait anymore.”


Indeed - the buying frenzy in India has been unleashed:




While the drop in gold prompted investors worldwide to pare holdings in exchange-traded products, surging physical demand in India may help stem the 17 percent slide in prices this year. The plunge after rallying for 12 straight years may make bullion more affordable to Indians, according to Mehul Choksi, chief executive officer of Gitanjali Gems Ltd. (GITG), the nation’s biggest retailer of jewelry and diamonds by sales.


“This is a perfect time to buy as prices will only go up from here,” said Vishal Mehta, a 33-year-old garment dealer, while ordering coins from Choksi V. Naginchand & Co. in Zaveri Bazaar. “I usually buy one gold coin a month, but this time I am buying two.”



Hence the true value of the word "double down". Here is another word US "investors" can learn from the Indians - value.




“It has been very hectic in the last two days,” said Deepak Tulsiani, owner of Dwarkadas Chandumal Jewellers in Mumbai as he surveyed his 11 employees, who were busy with customers. “There has been a rush to buy gold because now people are getting jewelry 15 percent cheaper than before. It’s value for their money.”


Zaveri Bazaar, the largest bullion market in the country, buzzed with customers, who were browsing through collections of bangles, bracelets, necklaces and rings displayed in trays ahead of the wedding and festival seasons. Most buyers were women in groups of two or more, accompanied by a male who paid the bills.


“Whatever be the price, Indians buy gold because it is an age-old tradition,” C.P. Krishnan, a director at Geojit Comtrade Ltd., said by phone from Kochi. “It has become an unavoidable expense during weddings and festivals. With the sudden crash in prices a lot of buying is happening across India as people are thinking of it as a golden opportunity.”



Yes: tradition! That's what the Chairman said too. And the chairman is never wrong. Even when he is selling the synthetic paper representation of that tradition and in the process allowing all those who trade on "value" and not "moment" to average down in terms of infinitely dilutible fiat paper.


Back to India:




“Some customers are still scared to buy now as they feel the price will go down more,” Chetan Ranka, owner of Choksi V. Naginchand, said after answering a call from a prospective customer on one of the four phones at his desk. “I have received more than 250 calls on Monday inquiring about the prices. Normally I get maybe 50 calls a day.”



The lower gold drops, the more people will buy.




“I had been keeping a tab on gold prices daily by reading the newspapers,” Sakshi Jain, a 39-year-old housewife, said as she held an intricately designed necklace against her neck in front of a mirror in Zaveri Bazaar. “I had some wedding purchases to make and as soon as prices dropped I came to buy.”



And the rub: once the correction is over, and prices resume their inexorable rising, the double down will become a buying frenzy, as everyone will realize one simple thing. Just because the BLS says inflation is has not arrived, it merely means the central banks, who are laboring under some $40-50 trillion in excess debt, will have no choice but to also double down. And one of these days not even the BLS' best efforts at fudging reality will fail.


Incidentally, they are already are. As the MIT's Billion Prices Project (http://bpp.mit.edu/usa/)shows, there is just a slight disconnect between reality and what is being spoonfed.
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/04/BPP.jpg (http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/04/BPP.jpg)
Finally, for some actual numbers, we go to Bank of America which has calculated that the disconnect between the paper selloff and physical buying spree can only last so long before gold shoots right back up to $2000 as the surge in buying overwhelms the paper selling.




With prices now below $1,500/oz, we expect a pick-up in jewellery demand in the medium term and see considerable pain for miners should prices dip below $1,200/oz. As such, we believe the downside to gold prices may be limited to an additional $150/oz. In fact, we estimate that jewellery demand may become so pronounced by 2016 that prices could trade above $1,500/oz even if investors remain net sellers. Looking at sensitivities from a different angle, investors would need to buy merely 600t of gold to sustain prices at $2,000/oz by 2016, compared to non-commercial purchases of 1,798t in 2012.



And some more thoughts from BofA:




Cyprus’ announcement to sell nearly 14t of gold reserves was a key trigger behind the recent collapse in gold prices, as it raised concerns that other peripheral nations may follow suit. Given our estimate that every $45/oz represents a net sale of 100t, the move over the last two days would suggest net sales of 480t, or about 20% of yearly mine supply. In short, the market seems to have discounted the combined future gold sales of Portugal and Greece. As we believe additional gold selling in the European periphery is highly unlikely, we find it hard to fully justify the sell-off.



So please go ahead and sell. All we can say is, well, thanks.

[optionT]

Is this the response that TPTB wanted or are they losing control?

[Shami-Amourae]

Is this the response that TPTB wanted or are they losing control?

I can never tell if they are winning or losing either. I don't get what their actual goals/plans all are.

[Glass]

I don't think you can draw a line on the score board and say we (TPTB) won!

I think it's a rinse repeat process. We are dealing with people here and it's an imperfect science. You have to work on percentages that are < 100% and be prepared to repeat the process to hoover up more and more of those people on the other side, the counter party.

so if you said your aiming for say 70% first time round you get 7 out of every ten. Next time around there is only 3/10 ths the number of people still holding out. You go for 70% of them which then gives you 91% of all people in just 2 goes around. 7 out of ten and then 70% of the remaining 30% which = 21% of the total people.

Diminishing returns when we talk about QE but that's how I think the process works. Go around 3 times and you have > 95% of the people. 70% might be a big starting number. Maybe its way less. Don't know. Of course the more idiots you have the bigger the numbers can be. Once over 90% it's a done deal. You can forget the slops (remaining ~5%) because they don't matter.

The other thing is that the US is really just a small portion of the whole world and what goes on in the US is completely different to what goes on out here. What the US hears about what goes on out here is also extremely limited. Central Asia is booming. Going deeper into the central asian region there are phenomenal development plans coming on stream over the next few years. These countries will not see the sorts of declines that the US and Europe will see over the next few years. In fact it will be the opposite IMO.

[Shami-Amourae]

Repost from a year ago for those who haven't seen it:

http://www.youtube.com/watch?v=sUr2E4dfs0Y

[Glass]

Not sure if anyone has posted this one here. Do we remeber Axel and the Silver Rockets?


Merk Gold and Currency Outlook

Axel Merk, Merk Investments

April 16th, 2013

Anyone who’s ever had a brick fall on one’s feet knows how much it can hurt. It’s little consolation if that brick is made of gold. What’s happening to the price of gold? And has our outlook changed, be that for gold, the U.S. dollar or currencies more broadly?

With regard to gold, the primary change is in its price. That’s not a very good reason to be more positive or negative on the fundamentals of the yellow metal. Since the market appears to be in a “glass half-empty mood”, let’s list some of the negatives:


China’s GDP growth has slowed to 7.7%, ushering in an era of more modest growth. In the past, disappointing growth numbers out of China have, on occasion, been a negative for the price of gold, as well as broader “risk sentiment”.
Indeed, as European Central Bank (ECB) President Draghi has recently pointed out, the reason the ECB isn’t printing more money is because other central banks have shown that it doesn’t work. For the time being, the market appears to agree: the printing presses have not achieved a great deal, as exemplified by lackluster growth in the developed world. Indeed, we have pointed out many times that the biggest threat we might be facing is economic growth. That’s because once the money that’s been “printed” starts to “stick”, then deficits start to matter as bond markets throughout the world might sell off.
The Eurozone has not fallen apart, and rampant inflation has not taken hold. Sure, certain prices have skyrocketed, but overall, the market as a whole is rather complacent. As such, it’s only reasonable for gold to take a breather.
There’s a lot of “exit” talk at the Federal Reserve (Fed) with even doves calling for a phasing out of purchases towards the end of the year. Never mind that a “phasing out of purchases” is not an exit. As we discussed in our recent analysis “Fed Exit - What Exit?” (http://www.merkinvestments.com/insights/2013/2013-04-10.php), much of this talk might be wishful thinking. Surely the Fed would like to go back to a more normal environment, but recent disappointing data, such as disappointing nonfarm payroll and retail sales reports show that such talk might be premature. Still, forward looking markets might start to price in that “at some point” there may be an exit from the highly accommodative monetary policy.


In the past, we have cynically indicated that there’s never been a Eurozone crisis; instead, there’s a global crisis. It is naïve to think that Japan’s problems are all solved with the one time salvo of the Bank of Japan. Similarly, the Bank of England is about to get Mark Carney as their governor, suggesting that a higher inflation target and/or nominal GDP targeting is in the cards. And in the U.S., Bernanke’s term is ending early next year; the last time we checked, Paul Volcker was not the most likely candidate to succeed Bernanke, but super-dovish Janet Yellen was the frontrunner. Taken together, there are plenty of reasons to believe that we haven’t seen anything yet with regard to the price of gold - and with that, we mean on the upside. However, investors were reminded of the fact that gold is historically rather volatile, even if recent volatility is on the high side even by historic standards. We also have to keep in mind that a lot of technical damage has taken place: many investors that bought gold in the past 2 years have paper losses and might be eager to sell on rallies. From our point of view, volatility is your friend, as it shakes out weak holders of gold, making price appreciation ultimately more sustainable.


More here (http://www.merkinvestments.com/insights/2013/2013-04-16.php). The link has some stuff about currencies which is interesting.

The message hasn't changed much. Shaking the weak hands etc

[mamboni]

The FED cannot stop printing for many reasons. The bottom line is that printing (QE) is the only tool and the only leverage the FED has. If they stop printing then they cease to be a force of any significance - they render themselves irrelevant. In any event, if they did stop QE interest rates would rise. If this happened the entire derivative structure would implode. I don't want to contemplate the kaos that would ensue worldwide. I do believe that amidst the anarchy and suffering, the peoples of the world would demand a stable money, having had their fill of Keynesian games and financial tricks. They have turned to gold every other time this has happened. Why woudl this time be any different?

[mamboni]

“(Reuters) - When he woke up to news of a collapse in gold prices, Yujiro Yamashita, 63, made his way to Tokyo's posh Ginza district to buy the precious metal for the first time in 20 years.”

http://www.reuters.com/article/2013/04/16/us-japan-gold-idUSBRE93F18I20130416 (http://www.reuters.com/article/2013/04/16/us-japan-gold-idUSBRE93F18I20130416)

[mamboni]

I think the FED and JPM cut their own financial throats with this latest gold and silver takedown paper rape. They will fail becuase of their arrogance and myopia. They still think America is the master of the world and the heart of finance. Well the world isn't playing that tune anymore and is moving to it's own tune now. They have unwittingly ignited the physical gold and silver markets into an international buying frenzy, in India, China, Japan, Russia and elsewhere.

(physical silver prices are exactly where they were just beofre the paper short raid by the banksters, showing what a fraud the COMEX price is. If you buy silver from the dealers today, you will get a modestly discounted price because premiums have all but compensated for the spot price discount; and you will wait 4-5 weeks for delivery. So physical silver in in literal backwardation. Which begs the question: how sure are you that the metal you buy todays will be delivered? A lot can happen in 4 weeks).




Gold Buying Frenzy Continues: China, Japan, And Australia Scramble For Physical


http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://gold-silver.us/users/tyler-durden)
Submitted by Tyler Durden (http://gold-silver.us/users/tyler-durden) on 04/17/2013 08:47 -0400



Australia (http://gold-silver.us/taxonomy_vtn/term/9837)
China (http://gold-silver.us/taxonomy_vtn/term/139)
Japan (http://gold-silver.us/taxonomy_vtn/term/8436)
National Debt (http://gold-silver.us/taxonomy_vtn/term/10174)
Reuters (http://gold-silver.us/taxonomy_vtn/term/9184)
Yen (http://gold-silver.us/taxonomy_vtn/term/10118)
Yuan (http://gold-silver.us/taxonomy_vtn/term/10769)



We noted here (http://www.zerohedge.com/news/2013-04-16/indias-response-gold-sell-buying-frenzy) that the plunge in the paper price of gold (and silver) had prompted considerable renewed demand for physical and now it seems the scramble among the "more stable investor base (http://www.zerohedge.com/news/2013-04-16/dylan-grice-gold-market-healthier-now)" is increasing. The shake out of ETFs and futures has left the Australian mint (http://www.theage.com.au/business/markets/golden-times-for-perth-mint-20130417-2hzv7.html) short of deliverables and Japanese (http://www.reuters.com/article/2013/04/16/us-japan-gold-idUSBRE93F18I20130416) and Chinese (http://www.ycwb.com/ePaper/ycwb/html/2013-04/16/content_1568336.htm) gold retailers seeing a "frenzied" surge in demand. The customers are not just the 'rich' or 'elderly'; in China "they tend to wear water shoes and come directly from the market...;" in Australia, "the volume of business... is way in excess of double what we did last week,... there’s been people running through the gate," and Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal. The panic selling by a weaker 'imminent inflation-based' investor base has sparked physical shortages - "there’s been significant sales made as people see this as great value." It seems our previous discussions of a rotation from paper to physical were correct (http://www.zerohedge.com/news/2013-02-26/februarys-strange-divergence-precious-metals) and this physical demand will eventually leak back into the paper markets.
Australia (via The Age (http://www.theage.com.au/business/markets/golden-times-for-perth-mint-20130417-2hzv7.html)):




Gold sales from Perth Mint, which refines nearly all of the nation’s bullion, have surged after prices plunged, adding to signs that the metal’s slump to a two-year low is spurring increased demand.


“The volume of business that we’re putting through is way in excess of double what we did last week,” Treasurer Nigel Moffatt said, without giving precise figures. “There’s been people running through the gate.”
...

“There’s been significant sales made as people see this as great value,” Mr Moffatt said. “Gold owners are very reactive to significant market movements.”
...

The Perth Mint’s sales of gold coins climbed 49 per cent to 97,541 ounces in the three months ended March 31 from a year earlier

China (via China News (http://www.chinanews.com/shipin/2013/04-17/news202021.shtml)):




Beijing gold store two hours to sell 20,000 grams of gold bullion trading volume of nearly 200 million



and (via YCWB (http://www.ycwb.com/ePaper/ycwb/html/2013-04/16/content_1568336.htm)):




People have to rush to buy gold, ... gold bullion out of stock yesterday, investors yesterday to spend as much as 600 million yuan to buy 20 kilograms of gold bars
The mad pursuit gold insufficiency is not just a game for the rich. Yesterday, the Yangcheng Evening News reporter learned from the East flowers to Bay store, many growers, pork traffickers, fishmonger recently put down his job went straight to the mall to buy gold.



Japan (via Reuters (http://www.reuters.com/article/2013/04/16/us-japan-gold-idUSBRE93F18I20130416)):




Some Japanese also harbor fears that the expansionary monetary and fiscal policies dubbed "Abenomics", coupled with a national debt more than twice as large as annual economic output, could trigger a crisis down the line.


Skeptics about the radical attempt to reflate the economy -- or those simply worried that a slide in the yen that began in anticipation of Abe's election victory last December will continue unabated -- are still buying gold, dealers say.
"Investors in gold are convinced that Japan's fiscal position will get worse," said Wakako Harada, general manager of Japan's top bullion house, Tanaka Kikinzoku Kogyo.


"What I see at our counter is that more people are getting worried about Japan. That's why we are seeing a lot of buying."
...

"In contrast this time, we are seeing interest to buy on dips to take exposures to gold,"
...

"Investors are using this opportunity to buy gold to diversify beyond bonds, stocks and the yen currency as Japan's fiscal situation could deteriorate."


(via The Age (http://www.theage.com.au/business/markets/golden-times-for-perth-mint-20130417-2hzv7.html)):




Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal.

[joboo]

It doesn't matter where people try to run and hide if you can just print up the control you need.

Theoretically the best strategy is to zag from the herd assuming the shepherd's don't have spares waiting on the sidelines.

I'm guessing it's all one big illusion at this point, as they're messing with everything, and just stealing it outright when the time comes.

[Large Sarge]

spreading around the globe, japan, china, and Australia in a frenzy for gold

http://www.zerohedge.com/news/2013-04-17/gold-buying-frenzy-continues-china-japan-and-australia-scramble-physical

[mamboni]

spreading around the globe, japan, china, and Australia in a frenzy for gold

http://www.zerohedge.com/news/2013-04-17/gold-buying-frenzy-continues-china-japan-and-australia-scramble-physical

My goodness, this is deja vu all over again! LOL

[Large Sarge]

My goodness, this is deja vu all over again! LOL

LOL

sorry,

went to the end of the thread....

my humble apologies

[mamboni]

US Mint Sells Record 63,500 Ounces Of Gold In One Day


http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://gold-silver.us/users/tyler-durden)
Submitted by Tyler Durden (http://gold-silver.us/users/tyler-durden) on 04/17/2013 21:23 -0400



High Frequency Trading (http://gold-silver.us/taxonomy_vtn/term/8356)
High Frequency Trading (http://gold-silver.us/taxonomy_vtn/term/140)
New Normal (http://gold-silver.us/taxonomy_vtn/term/11402)
Warren Buffett (http://gold-silver.us/taxonomy_vtn/term/9041)



One of the more curious revelations of the New Normal is the fundamental dichotomy when investing between paper "investors", or those who chase returns based on intangible, fiat-based and central bank-backed promises, such as capital appreciation or cash flow streams, and those who would rather convert their paper money into hard assets, even if said assets can not be, in the immortal words of Warren Buffett, fondled, or otherwise generate a cash-based return. Such as gold.


Today provides perhaps the perfect example of how the former increasingly trade on nothing but momentum and speculative mania (such as the previously reported record inflow (http://www.zerohedge.com/news/2013-04-17/late-party-after-203-annualized-surge-record-number-foreigners-buy-japanese-stocks)of foreign capital into the Japanese stock market well after the bulk of the easy upside has already been made and at this point there is mostly downside) and where buying begets only more buying, while rampant selling only leads to liquidations, while those who invest in hard assets (and thus have little to no leverage) have become the true value investors, purchasing more as the price of the underlying asset drops. Yes, a novel concept to most High Frequency Trading vacuum tubes, and the momentum-chasing, equity trading "expert" du jour, but nothing new to Indians (http://www.zerohedge.com/news/2013-04-16/indias-response-gold-sell-buying-frenzy), Australians (http://www.theage.com.au/business/markets/golden-times-for-perth-mint-20130417-2hzv7.html), Chinese (http://www.chinanews.com/shipin/2013/04-17/news202021.shtml)or the Japanese (http://www.reuters.com/article/2013/04/16/us-japan-gold-idUSBRE93F18I20130416).
And apparently to at least some Americans.


According to today's data from the US Mint (http://www.usmint.gov/mint_programs/american_eagles/?action=sales&year=2013), a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.


Punchline number one, as the chart below shows, is that the more the price of gold fell, the more aggressive the purchases of physical gold through the Mint became, rising to 96,500 oz in the last two days alone. Buying more of something you want when the price drops: what a stunning concept - explain that to the algos who nearly crashed the German stock market overnight (http://www.zerohedge.com/news/2013-04-17/closer-look-todays-german-stock-market-flash-crash).


Punchline number two, of course, is that the US mint charges a hefty premium for purchases: much more so than traditional vendors like Apmex or Gainesville Coins, and is usually the last resort for when nobody else has any physical at a lower premium to spot (or any metal in inventory).


http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/04/Gold%20Mint_0.jpg (http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/04/Gold%20Mint.jpg)


So how long until the US mint "runs out" of American Eagles and Buffaloes in inventory, along with the depletion of all other precious metal vendors? And what happens if the price of paper gold hits zero (or goes negative) courtesy of bank and financial institution liquidation selling of paper derivative contracts nebulously referencing some yellow metal somewhere, even as suddenly there is no physical to be delivered to anyone, anywhere?
Inquiring minds really want to know.

[mamboni]

Gold rush in Turkey


http://www.hurriyetdailynews.com/price-slump-sparks-rush-to-gold.aspx?pa... (http://www.hurriyetdailynews.com/price-slump-sparks-rush-to-gold.aspx?pageID=238&nID=45180&NewsCatID=344)

In another link the Turkish mint said "we have never seen such a high demand in our history, even though we work in two shifts we cannot catch up the demand, we sold 40 tons of minted coins last year but this year just in 4 months we have reached total of 37.5 tons.".


http://finans.gazetevatan.com/portal/ISE/getDetailsStory.html?storyId=20... (http://finans.gazetevatan.com/portal/ISE/getDetailsStory.html?storyId=208445&goToHomePageParam=true&siteLanguage=en)

[mamboni]

Chinese Gold Exchange Sold Out - Begins Importing From Switzerland (http://www.zerohedge.com/news/2013-04-19/chinese-gold-exchange-sold-out-begins-importing-switzerland)

Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 04/19/2013 - 14:02
http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/04/gold-coins_0.jpgHong Kong’s Chinese Gold & Silver Exchange Society has been in operations for over a century (http://www.bloomberg.com/news/2011-10-16/hong-kong-starts-trading-bullion-in-yuan-to-tap-triple-demand-.html), and it’s President Haywood Cheung was interviewed by Bloomberg news earlier today. Whoever orchestrated the attack on gold and silver (http://libertyblitzkrieg.com/2013/04/14/500-tons-of-paper-gold-dumped-on-friday-whats-next/) in the last week or so has gravely miscalculated, since the response to the drop has been surging demand for physical gold and silver. While I tend to be skeptical when I hear about silver shortages since these reports have been so exaggerated in the past, the lack of silver coin availability and premiums are the most extreme I have seen since the financial and economic meltdown of 2008. Now we discover that the Chinese Gold & Silver Exchange Society has essentially sold out of gold bullion, and must wait until Wednesday for shipments to arrive from Switzerland and London.


http://www.zerohedge.com/news/2013-04-19/chinese-gold-exchange-sold-out-begins-importing-switzerland



The thesis of the gold bull analysts like Sinclair, Turk, Willie and others is that the LBMA and western bullion banks have been practicing fractional reserve banking, have leased private gold accounts into the market secretly (and illegally) and have rehypothecated their gold bullion multiple times over. Perhaps with this explosion in gold bullion purchases we will find out if this true. Because if they're right, then LBMA is going to run out of gold for delivery to foreigners.

[ximmy]

frenzies, riots, melees, scrambles ...yawn ;D

[gunDriller]

i wonder what percentage of the Indian population 'stacks'. sounds like it might be more than in the US.

they stack in the form of jewelry, but stacking is stacking.


the rate things are going, maybe someday Americans will 'man' call centers for Indian consumers. they seem to have more common sense about money.

[mamboni]

i wonder what percentage of the Indian population 'stacks'. sounds like it might be more than in the US.

they stack in the form of jewelry, but stacking is stacking.


the rate things are going, maybe someday Americans will 'man' call centers for Indian consumers. they seem to have more common sense about money.

It's a class-dependent phenomenon. The middle class can afford to buy gold for a wedding - it's obligatory. The middle class is small compared to the west. But India is growing wealthier every year and the middle class will only grow in size and means. Considering it's population is four times the USA, this is incredibly bullish for gold.

[mick silver]

when gold went below 1400 bucks and oz i pick up two bars of gold . i also got a few rounds of silver for 50cents over the oz price

[Neuro]

Gold rush in Turkey


http://www.hurriyetdailynews.com/price-slump-sparks-rush-to-gold.aspx?pa... (http://www.hurriyetdailynews.com/price-slump-sparks-rush-to-gold.aspx?pageID=238&nID=45180&NewsCatID=344)

In another link the Turkish mint said "we have never seen such a high demand in our history, even though we work in two shifts we cannot catch up the demand, we sold 40 tons of minted coins last year but this year just in 4 months we have reached total of 37.5 tons.".


http://finans.gazetevatan.com/portal/ISE/getDetailsStory.html?storyId=20... (http://finans.gazetevatan.com/portal/ISE/getDetailsStory.html?storyId=208445&goToHomePageParam=true&siteLanguage=en)
Hmmm, yes that is about 4 times the amount that Europe forced Cyprus to sell. Which my mother claimed was the reason for the recent price drop (she is dis informed by Swedish MSM) My regular shop I went to this morning were practically sold out, never seen so little on the shelf before, here, and that includes the price drops of 2008... People do understand a discount sale here...

[osoab]

Hmmm, yes that is about 4 times the amount that Europe forced Cyprus to sell. Which my mother claimed was the reason for the recent price drop (she is dis informed by Swedish MSM) My regular shop I went to this morning were practically sold out, never seen so little on the shelf before, here, and that includes the price drops of 2008... People do understand a discount sale here...


I thought Cyprus still had to "vote" on the selling of the gold.

[Neuro]

I thought Cyprus still had to "vote" on the selling of the gold.
That may be, I am not totally involved and informed in the intricacies of the Cyprus affair... Ten tons is really nothing, but it's been touted as the reason for the drop in gold price to the Sheeple...

[mamboni]

per Andy Xie


Gold Has Bottomed…

The recent crash has cleansed the gold market of speculative liquidity. The demand for gold is mainly from emerging economies that face chronically high inflation. The recent growth deceleration pushes these economies into stagflation. Their demand for gold is likely to be persistent.

At the beginning of the year, I was positive on gold for the second half of 2013. I was expecting a rising dollar and strong stock market to dampen gold demand. As a weak global economy eventually cools stock markets, gold will come back.

Now I believe that gold has bottomed. Speculative money in gold has left. Inflation and slowing growth are favorable for gold. Stock markets are likely to struggle for the next few months. The dollar's rise is pausing for now. It seems that the headwinds for gold are removed and the tailwinds are getting stronger. Gold should perform quite well for remainder of the year. Even a new high is possible.

Retail investors must be vigilant on market manipulation. Physical gold demand is mainly from emerging economies like China, India and Middle Eastern countries. The gold financial markets are in New York and London. The financial players can make money from emerging market retail investors by creating artificial cycles, creating euphoria and panics. Gold buyers should not buy after a price surge. Now is a good buying opportunity.

http://english.caixin.com/2013-04-19/100516606_1.html

[gunDriller]

It's a class-dependent phenomenon. The middle class can afford to buy gold for a wedding - it's obligatory. The middle class is small compared to the west. But India is growing wealthier every year and the middle class will only grow in size and means. Considering it's population is four times the USA, this is incredibly bullish for gold.

from CIA world book -

"$4.784 trillion (2012 est.)
country comparison to the world: 4
$4.492 trillion (2011 est.)
$4.205 trillion (2010 est.)
note: data are in 2012 US dollars
GDP (official exchange rate):
Field info displayed for all countries in alpha order.
$1.947 trillion (2012 est.)
GDP - real growth rate:
Field info displayed for all countries in alpha order.
6.5% (2012 est.)
country comparison to the world: 34
6.8% (2011 est.)
10.1% (2010 est.)
GDP - per capita (PPP):
Field info displayed for all countries in alpha order.
$3,900 (2012 est.)
country comparison to the world: 166
$3,700 (2011 est.)
$3,500 (2010 est.)
note: data are in 2012 US dollars "
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html


i get the impression that Indians spend a much larger percentage of their money on physical Gold than do Americans.

in the long run, i think that will serve them well.

[Serpo]

Today Jim Sinclair sent King World News one of the most extraordinary and powerful pieces he has ever written in his 50 years in the financial business. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis and whose father was business partners with legendary trader Jesse Livermore, had to say in this remarkable piece.



&lt;/frame&gt;


Sinclair: “Gold is freeing itself as an emancipation process from the gold banks control via paper gold that has no gold whatsoever involved in it. The thralldom of the gold price ends when the Evil Kings of Gold, the Gold Banks, are clearly proven to have no gold clothes on.



The emancipation of gold from paper is now in progress as physical demand increases unperturbed, and rather pleased by the lower price of the metal of kings. The central planning fools, in their effort to try and break the mystic of gold via a paper crash, have only ignited what once was sparks into flames for its physical accumulation....



“They do not understand that the day demand stands for full delivery at a contract maturity, even at these low prices, the fraudulent nature of the gold future, gold lease, and OTC gold hedges is revealed and therefore destroyed.



This could occur in gold at any price and need not be foreshadowed by a rise in the price of the metal. Since there is no gold anywhere and above ground supplies are now being significantly consumed by us, the physical gold market will set the price unencumbered by governments or manipulators. This freedom from manipulation by paper is the emancipation of gold.



Every time you buy one ounce of physical gold you cast your vote against the system and its masters, the banksters. These sociopaths rule by being bullies and committing fraud. Their days are numbered and gold is the ‘White Knight’ that is going to slay the evil dragon.



The biggest mistake the central planners have made is to depress paper gold, which they thought would stop the physical run on gold. They have ignored the fact that the Cyprus plan for confiscation of depositors' funds, originally at all levels of wealth, plus their clear call for nationalization of retirement accounts and funds, has gone viral around the entire world. No amount of denial will now stop the average person or the wealthiest of individuals from seeking other means to privatize and protect their wealth.



We all know that the next move of central planers can be predicted as currency controls. Consequently the trend to buying gold, seeking out of the system storage and closing down of large in the system deposit accounts and in the system retirement accounts, will now only accelerate.



The central planners in their infinite lack of wisdom have, by bombing the gold price, simply made the source of the problem more transparent and added huge short positions to the no gold behind paper fraud. KWN readers around the world have to keep in mind that the central planners have never, in all of history, succeeded in eliminating gold's role as money, or as a timeless protection of savings.



If the COT report does not reveal an enormous growth in the short position in gold then it will be revealed as being as much of a fraud as was the LIBOR rate. That is not to hard to understand when you recognize the exact people who gave you LIBOR are also the major architects of the COT.



We live in evil times wherein there will be no hesitation for the sharks to attack the other sharks when a severe weakness has been exposed. The Federal Reserve in NYC and Morgan may have a common tunnel between their precious metals depository, but given an opportunity, based on any weakness, either would attack the other for profit.



Governments annoyed by the prejudicial Cyprus 'bail-in' proposals, knowing that gold does not exist behind paper, need only accelerate their physical purchases to further expose the weakness that the now non-functioning fractional gold paper system has exposed.



This why two of the professionals that did recognize $1900 as a price the Banksters were most uncomfortable with also see this month as the culmination of an attempt to destroy physical demand by crushing the paper price. I cannot speak for Mr. Fennen, but I know that is Polny’s view.


"http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/21_Sinclair__Physical_Gold_Buyers_Will_Now_Crush_C entral_Planners.html

[Serpo]

THIS
IS
NOT
HOW
IT
IS
SUPPOSED
TO
WORK!!!!




But that's not the BIG NEWS. What is truly breathtaking is that the silver commercials who are long...and gross long at a record-breaking 60,000+ contracts...and which suffered incredible losses during the reporting week...and were subjected to Tuesday's margin hike...ACTUALLY ADDED MORE LONGS. THEY WERE NOT DEFEATED OR DISSUADED. THEY ARE STEADFAST.

GOLD

For the week, the LargeSpecs added 850 longs and covered 8,650 shorts. The SmallSpecs really got burned by the drop and also felt the sting of the margin hikes. They sold 7,150 longs and compounded their future issues by adding 4,250 shorts. Yikes! This allowed the Gold Cartel to only cover 1,900 net shorts as they added 6,800 shorts while they also added 8,700 longs. (I would imagine that almost all of this Cartel activity took place on Monday.) The updated Cartel net short ratio is a still-bullish 1.98:1.
SILVER
Just as in gold, the silver Large Specs added 1,200 new longs while covering 8,500 shorts. Their updated net long ratio is 1.8:1. And the silver SmallSpecs were burned just like the gold SmallSpecs. They sold 3,100 longs and added 2,000 new shorts. Double Yikes!
And now check this out. As mentioned above, not only did the everybody-but-JPM crowd NOT sell last week, they actually BOUGHT! They increased their already record breaking gross long position by 581 contracts to 61,641. Incredible mainly because they are subject to the margin hikes, too. Not only did they not bail...they gave JPM the finger and bought more!
This forced JPM and their two pals to issue even more naked paper. For the week, they added 5,155 new shorts, bringing their total back up to 84,139. The new Silver Cartel net short ratio is still extremely bullish at 1.36:1.

On massive selloffs, whoever is long (be it the specs or some commercials) is supposed to sell. This allows JPM and their friends the ability to cover. This is how it has worked for time immemorial. Period. End of story. NOT THIS TIME! Silver fell over $4 (15+%) in two days and yet JPM had to ADD SHORTS?!?! Are you kidding me???

http://www.tfmetalsreport.com/blog/4660/xxx

[Hypertiger]

The top owns all the gold in circulation...of course to sustain a circulation the supplies have to be constantly increased...

All the top does is let you all bid up their assets...and then when you all below have bid them up enough...they short the assets or tax the bottom...Until everyone is running from the taxes and then they cover and let you all bid up the assets until it's tax time again.

April 15 was tax day...and taxes are rising globally.

The top...owner...employer...master...government.

Lives off the yield from

The bottom...the owned...the employee...the slave...the governed.

The top does all the buying and selling...the bottom follows along and speculates.

[Ponce]

There are NINE TIMES the ammount of gold above ground that there is of silver....so, which on do you think is more valuable?

Now they are going to use silver for those scanners tags of which billions of them are all over the world.

Those using silver for their electronics, and so on, are getting worried about their suppy.

The more of your silver and gold that you sell the more of your gold and silver that the power to be will buy which in turn means less gold and silver in the hands of the John Doe on the streets which means higher and higher prices for silver.

V

[mamboni]

Bloomberg News
Indian Jewelers Offer Premium on Gold Imports as Demand Surges
By Pratik Parija
April 23, 2013

A rush by Indian consumers to buy gold jewelry and coins after the biggest plunge in prices in three decades is prompting jewelers to offer premiums on imports as traders and banks run out of stockpiles, a trade group said.
Jewelers in big cities are paying as much as 800 rupees ($14.73) per 10 grams (0.02 pounds) while retailers in some remote areas are paying about 1,200 rupees per 10 grams as a premium, Haresh Soni, chairman of the All India Gems & Jewellery Trade Federation, said by phone today.
Buyers are flocking to jewelry stores and bank outlets to buy ornaments, coins and bars ahead of India’s main wedding and festival seasons after gold slumped to a two-year low. Standard Chartered Plc’s gold shipments to India last week exceeded the previous record by 20 percent and were double the week before, London-based analyst Dan Smith said by phone today.
Gold has declined 15 percent in London trading this year, completing its descent into a bear market, and fell the most since 1983 in the two days through April 15 on growing speculation that a recovery in the U.S. will curb demand for the metal as a store of value.
“There is scarcity of raw material in the market and demand is good now,” Soni said. “We don’t have a choice but to pay a premium to get the raw material on time. We normally don’t pay premium on imports.”
Overseas purchases of gold may jump 36 percent to 305 metric tons in the three months ending June from 225 tons a year earlier, Mohit Kamboj, president of the Bombay Bullion Association Ltd., said in a phone interview last week. Imports may climb as much as 20 percent this month from year earlier, he said.
Banks, Agents
“Banks and agents don’t have much gold left to sell and jewelers are buying at a premium to meet the rise in retail demand,” Kamboj said. “Small and retail investors are buying more coins and bars. Looking at the rate at which people are buying, imports are bound to rise.”
Futures on the Multi Commodity Exchange of India Ltd. (MCX) tumbled to as low as 25,270 rupees per 10 grams on April 16, the cheapest since September 2011. The June-delivery contract traded 0.3 percent lower at 26,275 rupees by 6:55 p.m. in Mumbai.
The Akshaya Tritiya festival on May 13 is considered by India’s more than 900 million Hindus as the traditional day to buy precious metals. Gold is bought during festivals and marriages as part of the bridal trousseau or gifted in the form of jewelry by relatives. The main festival season runs from August to October followed by the wedding season from November to December and from late March through early May.
India has tripled import taxes from as low as 2 percent in January last year after the current-account shortfall, the broadest measure of trade, widened and the rupee slumped to a record against the U.S. dollar. The current-account deficit widened to $32.6 billion in the last quarter of 2012.

[mamboni]

Bloomberg News
Indian Jewelers Offer Premium on Gold Imports as Demand Surges
By Pratik Parija
April 23, 2013

A rush by Indian consumers to buy gold jewelry and coins after the biggest plunge in prices in three decades is prompting jewelers to offer premiums on imports as traders and banks run out of stockpiles, a trade group said.

Jewelers in big cities are paying as much as 800 rupees ($14.73) per 10 grams (0.02 pounds) while retailers in some remote areas are paying about 1,200 rupees per 10 grams as a premium, Haresh Soni, chairman of the All India Gems & Jewellery Trade Federation, said by phone today.

Buyers are flocking to jewelry stores and bank outlets to buy ornaments, coins and bars ahead of India’s main wedding and festival seasons after gold slumped to a two-year low. Standard Chartered Plc’s gold shipments to India last week exceeded the previous record by 20 percent and were double the week before, London-based analyst Dan Smith said by phone today.
Gold has declined 15 percent in London trading this year, completing its descent into a bear market, and fell the most since 1983 in the two days through April 15 on growing speculation that a recovery in the U.S. will curb demand for the metal as a store of value.

“There is scarcity of raw material in the market and demand is good now,” Soni said. “We don’t have a choice but to pay a premium to get the raw material on time. We normally don’t pay premium on imports.”

Overseas purchases of gold may jump 36 percent to 305 metric tons in the three months ending June from 225 tons a year earlier, Mohit Kamboj, president of the Bombay Bullion Association Ltd., said in a phone interview last week. Imports may climb as much as 20 percent this month from year earlier, he said.

Banks, Agents

“Banks and agents don’t have much gold left to sell and jewelers are buying at a premium to meet the rise in retail demand,” Kamboj said. “Small and retail investors are buying more coins and bars. Looking at the rate at which people are buying, imports are bound to rise.”

Futures on the Multi Commodity Exchange of India Ltd. (MCX) tumbled to as low as 25,270 rupees per 10 grams on April 16, the cheapest since September 2011. The June-delivery contract traded 0.3 percent lower at 26,275 rupees by 6:55 p.m. in Mumbai.

The Akshaya Tritiya festival on May 13 is considered by India’s more than 900 million Hindus as the traditional day to buy precious metals. Gold is bought during festivals and marriages as part of the bridal trousseau or gifted in the form of jewelry by relatives. The main festival season runs from August to October followed by the wedding season from November to December and from late March through early May.

India has tripled import taxes from as low as 2 percent in January last year after the current-account shortfall, the broadest measure of trade, widened and the rupee slumped to a record against the U.S. dollar. The current-account deficit widened to $32.6 billion in the last quarter of 2012.

[mamboni]

CEO Of Gold Bullion International On Why Now Is The Time To Buy Precious Metals (https://www.hardassetsalliance.com/investing-news/editorial/ceo-of-gold-bullion-international-on-why-now-is-the-time-to-buy-precious-me)Hard Assets Alliance Team (http://www.hardassetsalliance.com/about-us/hard-assets-alliance-team)

April 05, 2013

Steven Feldman had a distinguished banking career at Goldman Sachs, but he's now devoting his efforts to Gold Bullion International.
In this exclusive interview, Feldman discusses the SmartMetals platform and gives his outlook for precious metals.


http://www.youtube.com/watch?feature=player_embedded&amp;v=icGXLc9MnFc

[Serpo]

How the bankers crashed the gold market – again! Last week’s take-down of the gold price has huge parallels with December 2011 – even down to the freezing of computer gold trading systems at a critical time in the process.



Author: Lawrence Williams
Posted: Tuesday , 23 Apr 2013
LONDON (Mineweb) -
There have been all kinds of theories as to the cause of the huge drop in the gold market over last weekend, and the best I have seen to date has come from Bill Downey – proprietor of the internet site www.goldtrends.net (http://www.goldtrends.net) and long term student of the gold and silver markets.
Interestingly, the driving down of the price may not have directly involved the Fed (although there could perhaps have been some collusion) – but relates initially to a drawdown in physical stocks of gold on COMEX and in the JP Morgan vaults (and perhaps others too) to levels which could seriously damage the short position holders in the metals. While the analysis is yet another theory on what actually happened, its parallels with the gold price take-down of December 2011 are too close to be ignored – even down to the assumed possibility of a total breakdown of the computer systems allowing trading of physical gold at a critical point in the price action. Too unlikely perhaps to be a coincidence.
The crashing of the gold price would probably not be possible without the computer trading systems which dominate the market today with trigger points for stop-loss trades which come in at specific levels – and themselves drive the price down in a continuing spiral once the key trigger points are reached. It is the market manipulation to bring the prices down to these trigger points which is key to the whole scenario.
As Downey puts it, the market controllers would thus “need to devise a plan that would collapse the market and trip up all the stops at the correction lows in gold of $1525 thereby setting off the stop loss orders under this important market low. And what if the plan included a way to stop the physical market from purchasing gold under 1525 while that correction was underway?”
The first move would be to spook the gold market, perhaps with disinformation – but key this time was an indication from the FOMC minutes that the Fed might be considering ending QE sooner than previously indicated. This was leaked earlier than usual, whether by design or coincidentally, who knows – but it created the initial trigger for the big gold price take-down.
Downey goes on “You start the ball rolling with disinformation and early leaks and surprise with potential policy change considerations at the Federal Reserve level and you follow it up with a potential huge gold supply story that could come to the market”
In this case the story which triggered the next fall in the markets was the enforced Cyprus gold reserve sale one – which may well have been pure disinformation given that the Cyprus central bankers say this had not been discussed at all!
And then the final blow to the market was massive selling on the futures market. One report talks of a single 400 tonne sale.
Downey again “You've shaken up the market and the selling begins and gets to within 20 dollars of two year lows where all the stops are and then you bring it down to where all the stops start getting tripped up and you just sit back and watch the market do the rest. Finally, you shut off the physical system and stop gold buying and at the same time you force physical dealers to sell the futures to hedge themselves.”
This appears to be what happened even down to total computer shutdowns on the Friday afternoon which prevented physical gold trades being accomplished in this manner, (although telephone trades could still be made) – which could possibly have halted the decline. Unable to trade and fearful of margin calls coming due at market opening on the Monday, many traders were forced into panic shorting of the futures market to protect themselves, all contributing to the gold freefall - or so Downey's theory suggests.
One might think that the computers freezing at a critical time might have been coincidental – but the same happened in the previous big gold price take-down in December 2011. Maybe it was just volume related, but it is certainly suspicious. Of perhaps some comfort to those who have kept their gold holdings – or have been buying on the dip, following the December 2011 crash gold rose by $270 over the next two months given the then shortage of physical metal. This time around the volume of buying at the lower gold price levels appears to have been enormous which is likely to exacerbate any precious metals shortages which may have developed. Thus it may not be ridiculous to anticipate an even greater bounce back this time around.
Downey reckons that in reality there are only two things that can bring gold down. A manipulated event like we just saw or a liquidity squeeze like we saw in 2008 where an immediate need for cash forced the liquidation of all assets. “Can it happen again?” he says – “ Yes, but this time it would be on a global scale and much more powerful than the Lehman crisis of 2008.”
This article is but a brief summary of Downey’s thesis on what actually happened to gold over that fateful weekend. To read his full analysis click here. (http://www.goldtrends.net/FreeDailyBlog?mode=PostView&bmi=1267250) It makes for fascinating reading.
Be aware though that this is a theory of what happened, but one which fits the scenario well. Other analysts, like Doug Casey for instance, do not subscribe to the overt manipulation theory, but would reckon that a whole combination of events occurring over the past two weeks could have had the same effect. Whether the real truth will ever come out is anyone's guess.

http://www.mineweb.com/mineweb/content/en/mineweb-gold-analysis?oid=187188&sn=Detail

[Serpo]

http://silverdoctors.com/falling-into-a-golden-twilight-zone-of-financial-theft/#more-25557

[mamboni]

Why $50,000 Gold?

Posted April 19th, 2013 by Jim Sinclair (http://www.jsmineset.com/author/jimsinclair/) & filed under General Editorial (http://www.jsmineset.com/category/generaleditorial/).

My Dear Extended Family,

I have a huge number of emails all asking why $50,000 gold. The answer is that the bullion market is in the process of emancipation of the gold price from the fractional paper gold system. The actualization of the real price of gold will be its emancipation from the prison of paper gold. The emancipation will occur because there is no gold whatsoever behind the deluge of paper we have just witnessed.

The central banks have most of their gold under lease. That gold was leased by gold banks and then sold for cash. That cash has been dispersed.

There are no funds to re-buy the gold that the leases call for upon maturity. The central banks cannot lease out any more gold. The entire fractional gold paper scam sits upon gold leases that are exploding right now.

The attempt to hide reality by the can kick of pummeling the gold market with paper is going to fail miserably.

Every time you buy one gold coin you consume more physical. It is the physical market that is going to emancipate gold. Gold then will be free to react to not only the debt due to foreigners, but all debt.

Please take your time to watch the Canadian documentary on gold here on JSMineset.com (http://jsmineset.com/). It exposes the fragility of the fractional paper gold system that is now burning down because leases cannot be repaid to central banks.

The real gold show is only starting. For a great deal of what the Free-Golders think, they are right.


Sincerely,
Jim

[mamboni]

Market Wrap: Gold & Silver Surge As Indian Demand Doubles, Jim Rogers To Buy At $1300


http://www.hardassetsinvestor.com/market-monitor-archive/4744-market-wra... (http://www.hardassetsinvestor.com/market-monitor-archive/4744-market-wrap-gold-a-silver-surge-as-indian-demand-doubles-jim-rogers-to-buy-at-1300-oil-a-copper-jump.html)

[mamboni]

http://1.bp.blogspot.com/-OGYBB-waic4/UXls3agwHpI/AAAAAAAAo40/Bw_fotM5rlg/s1600/goldonmilkcarton.jpg

[Serpo]

There may be a paper market that trades virtually every second, but if you want real physical gold it is becoming harder and harder to come by. .....


article



http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/25_Stunning_%26_Massive_Run_On_Physical_Gold_%26_S ilver_Continues.html

[Serpo]

http://rt.com/shows/keiser-report/episode-436-max-keiser-331/

[mamboni]

Check out the comments section. Physical is moving. The paper price .... well, that's a whole 'nother story.

Your Insights From Around the World (http://srsroccoreport.com/your-insights-from-around-the-world/your-insights-from-around-the-world/)

Filed in News (http://srsroccoreport.com/category/categories/news/) by SRSrocco (http://srsroccoreport.com/author/srsrocco/) on May 19, 2013 • 8 Comments (http://srsroccoreport.com/your-insights-from-around-the-world/your-insights-from-around-the-world/#comments)



(BANGKOK: Many traders put $300,000 at a time on the counters of the hundreds of gold shops here in the city). We want to hear what is going on in your area of the world… whether it’s about precious metal availability or premiums, inflation, political events, important local news, employment/job situation, etc.

If you would like to share an insight that you believe is important, you can place it in the comment section of this post.
The inspiration to start this new blog post came from reading one of the comments on this site about the huge demand of gold buying taking place in Bangkok.

This is what roger had to say:

“I live in Bangkok and with the fall in price of gold yet again many of the small gold shop have removed ALL their gold bars for sale. People are buy what evers in the shops. It truly is a constant free for all. At some point the shops will be empty of gold bars. Here owning paper money is only for trading. NO ONE keeps their wealth in paper only gold.

After the weekend trade in the many businesses here the Chinese traders are queuing to exchange their Bahts for gold. Many traders put $300,000 at a time on the counters of the hundreds of gold shops here in the city.. Buying gold is about as difficult as buying a hot dog from a vender on a street corner in America .. NO name is asked for. NO asking where ya get the money from, NO ,where ya live , NOTHING WHATSOEVER. No paperwork . The ONLY words from the shop keepers is Thank for using my shop.
This is the land of the free.”
—————–


Again, it would be nice to know what important events or updates are taking place in your town, village or country. This post will be updated every week. If you have something that you think is interesting, please share it with us.

http://srsroccoreport.com/your-insights-from-around-the-world/your-insights-from-around-the-world/

[Serpo]

South Africa's NUM seeks 15-60 percent wage rises from gold, coal producershttp://www.reuters.com/article/2013/05/19/us-safrica-union-demands-idUSBRE94I04O20130519

[mamboni]

No Bear Market In Gold — Paul Craig Roberts
May 20, 2013


You know that gold bear market that the financial press keeps touting? The one George Soros keeps proclaiming? Well, it is not there. The gold bear market is disinformation that is helping elites acquire the gold.


Certainly, Soros himself doesn’t believe it, as the 13-F release issued by the Securities and Exchange Commission on May 15 proves. George Soros has significantly increased his gold holding by purchasing $25.2 million of call options on the GDXJ Junior Gold Miners Index.


http://bullmarketthinking.com/soros-reports-over-239mm-in-gold-positions-buys-25mm-in-call-options-on-juniors/
(http://bullmarketthinking.com/soros-reports-over-239mm-in-gold-positions-buys-25mm-in-call-options-on-juniors/)

In addition the Soros Fund maintains a $32 million stake in individual mines; added 1.1 million shares of GDX (a gold miners ETF) to its holdings which now stand at 2,666,000 shares valued at $70,400,000; has 1,100,000 shares in GDXJ valued at $11,506,000; and 530,000 shares in the GLD gold fund valued at $69,467,000. [values as of May 17]


The 13-F release shows the Soros Fund with $239,200,000 in gold investments. If this is bearish sentiment, what would it take to be bullish?


The misinformation that Soros had sold his gold holdings came from misinterpreting the reason Soros’ holdings in the GLD gold trust declined. Soros did not sell the shares; he redeemed the paper claims for physical gold. Watching the gold ETFs, such as GLD, being looted by banksters, Soros cashed in some of his own paper gold for the real stuff.


More… (http://www.paulcraigroberts.org/2013/05/20/no-bear-market-in-gold-paul-craig-roberts/)

[mamboni]

This is why I don't watch Bloomberg and any other MSM propaganda outlets. The interviewers are always these young chippies who pose every question with an obvious pro-dollar anti-gold bias supplemented by a disrespectful giggle and titter at every answer that doesn't conform to their predetermined script. The twit asserts that gold is unstable because the dollar price is volatile? This stupid bitch can't see the obvious circular argument here? Too bad Paul didn't point out that gold in yen has been anything but "unstable" raging higher and higher despite all the paper suppression by the FED:


http://www.youtube.com/watch?v=Iwav9ldKvbg&amp;feature=player_embedded

[gunDriller]

This is why I don't watch Bloomberg and any other MSM propaganda outlets. The interviewers are always these young chippies who pose every question with an obvious pro-dollar anti-gold bias supplemented by a disrespectful giggle and titter at every answer that doesn't conform to their predetermined script.

and the scary thing is - they're the ones who score high on tests.

though i think appearance and "diction" must play a role.


i lasted 10 seconds on that video.

the dumb interviewer can go plant all her retirement savings in Google stock.

[mamboni]

and the scary thing is - they're the ones who score high on tests.

though i think appearance and "diction" must play a role.


i lasted 10 seconds on that video.

the dumb interviewer can go plant all her retirement savings in Google stock.

What is infuriating is the obvious hatred directed at gold. Every damn news piece is turned into a vehicle for trashing gold, every damn one. These are the same sanctimonious folk who claim to be objective and factual. The entire 12 year bull run in gold is conveniently ignored: "let's talk about the last few months. Oh my, gold is looking really bad. How about that mighty dollar rah rah rah." The entire MSM news edifice is a government-run propaganda apparatus to promote the dollar and paper investment and trash the one asset that is a major thorn in the side of our lying cheating stealing government: GOLD!

[mamboni]

Interesting anecdotal report out of TFMetals today:

The metals dealer in the NC city from whom I purchase my stuff has a few rolls of 2013 Eagles, but the price is $31. Only a few rolls remaining as of yesterday. He has no other gold or silver non-numismatic stuff left. But the surprising thing he told me is that he gets calls frequently from J.P. Morgan asking if he has gold or silver available for sale. I expressed amazement that the monster bank would be calling a small, local shop. He then showed me the caller ID that morning from JP Morgan. Convinces me - the bottom is in. JP is desperate to cover.

[gunDriller]

What is infuriating is the obvious hatred directed at gold.

but it's a very selective hatred.

i don't think that female propagandist went home and threw away all her gold jewelry.

i'd even bet that her boyfriend gets more sex for giving her gold than he does for giving her silver.


hook her legs up to a Spread-o-Meter and see what metals make her legs twitch.

Platinum. Spread-em !

Gold. Spread-em !

Silver. peck on the cheek.

Palladium - would make her frown. "It's used in Solar Panels ? It sounds like a roller-skating rink." if i were him, i'd stay away from Palladium.


would she rather eat dinner on Genuine Gold-trimmed china - or paper plates ?

[mamboni]

Mike Maloney with the latest on the gold and silver supercycles:


http://www.youtube.com/watch?v=vTYfG4WvJPs&amp;feature=player_embedded

[Serpo]

Interesting anecdotal report out of TFMetals today:

The metals dealer in the NC city from whom I purchase my stuff has a few rolls of 2013 Eagles, but the price is $31. Only a few rolls remaining as of yesterday. He has no other gold or silver non-numismatic stuff left. But the surprising thing he told me is that he gets calls frequently from J.P. Morgan asking if he has gold or silver available for sale. I expressed amazement that the monster bank would be calling a small, local shop. He then showed me the caller ID that morning from JP Morgan. Convinces me - the bottom is in. JP is desperate to cover.

i have a bullion dealer in Brisbane who told me 2 or 3 years ago that this would happen.....

[Serpo]

but it's a very selective hatred.

i don't think that female propagandist went home and threw away all her gold jewelry.

i'd even bet that her boyfriend gets more sex for giving her gold than he does for giving her silver.


hook her legs up to a Spread-o-Meter and see what metals make her legs twitch.

Platinum. Spread-em !

Gold. Spread-em !

Silver. peck on the cheek.

Palladium - would make her frown. "It's used in Solar Panels ? It sounds like a roller-skating rink." if i were him, i'd stay away from Palladium.


would she rather eat dinner on Genuine Gold-trimmed china - or paper plates ?
http://www.lycra-zentai.com/images/Silver-Sexy-PVC-Stockings-22130-1.jpg (http://www.google.com.au/url?sa=i&source=images&cd=&docid=OhCzjZ3KAz0WaM&tbnid=1xDO2h5fpJmiDM:&ved=0CAgQjRwwADi0AQ&url=http%3A%2F%2Fwww.stylehive.com%2Fbookmark%2Fsi lver-pvc-sexy-stockings-zentai-accessories-wholesale-zentai-catsuit-lycrazentaicom-1309193&ei=rZKcUZD_CMagkQXe44D4DQ&psig=AFQjCNF5FXaPaTHJmnfzhip673YNCed5qg&ust=1369302061190904)



In two years time the tables will be turned and it s silver all the way....................

[mamboni]

i have a bullion dealer in Brisbane who told me 2 or 3 years ago that this would happen.....

Don't be a tease Serpo. Tell us some more! At the risk of appearing obtuse, what does it mean?

[mamboni]

Ted Butler: Blockbuster in Gold as JP Morgan Likely Acquired 10 M oz of Gold Liquidated by GLD

May 22, 2013 By The Doc (http://silverdoctors.com/members/the-doc/profile/) 4 Comments (http://silverdoctors.com/ted-butler-blockbuster-in-gold-as-jp-morgan-likely-acquired-10-m-oz-of-gold-liquidated-by-gld/#comments)


http://silverdoctors.com/wp-content/uploads/2013/03/Bernanke-Dimon-Fed-Tunnel-300x199.png (http://silverdoctors.com/wp-content/uploads/2013/03/Bernanke-Dimon-Fed-Tunnel.png)

One of the key considerations in gold has been the redemption of more than 10 million ounces (over $15 billion) since year end from the world’s largest gold Exchange Traded Fund, GLD. I believe that the big buyer of the 10 million ounces of gold liquidated in the GLD was JPMorgan, either alone or with other collusive commercial banks.


I’m not suggesting that JPMorgan did anything wrong by intentionally evading SEC reporting requirements. That potential infraction pales in comparison to the real crime. In this crime (actually more egregious in silver than in gold) the crooked bank manipulated gold prices lower, via the usual COMEX price-fixing mechanics, to induce GLD shareholders to sell. This was a planned and executed operation that left no stone unturned.


It appears to me that JPMorgan and their ilk have bought absolutely massive quantities of gold and silver in many different markets. Unfortunately, much of that buying has come as a result of the deliberate and successful manipulation of price in order to force others to sell. I don’t believe that is fair or even legal. Nevertheless the bloodless verdict of the market suggests we are going a lot higher at some point soon.

This has been one of the worst stretches for gold and silver price-wise in quite some time, no secret there. I have to go back to when silver was in single digits to find a comparable period. The question on precious metals investors’ minds is whether this bad stretch is going to continue much longer. Are the past few months setting the stage for a pronounced rebound in prices or has the tide changed for the worse for an extended period of time? I think the answer can be found in analyzing the following facts:


One of the key considerations in gold has been the redemption of more than 10 million ounces (over $15 billion) since year end from the world’s largest gold Exchange Traded Fund, GLD. That is a major amount of gold and represents around 25% of the entire holdings in GLD (at year end). The gold ETF holds the largest privately held stockpiles of the metal. Consequently it has a pronounced influence on gold prices.


It is widely reported that the 10 million ounces of gold that came out of the GLD have been bought by India or China, even though substantiating data is lacking. Let’s only consider the facts that we know. The 10 million gold ounces that came out of the GLD equals roughly 100 million shares of GLD (one-tenth ounce per share). The 10 million ounces that are no longer in the GLD still exist and, therefore, must be owned by someone. We know that the reason the shares were liquidated in GLD was due to the rotten price performance that weighs on metals investors’ minds. This tends to eliminate China as the big buyer; as such buying would cause gold prices to rise, not fall. The shares were sold and metal redeemed because the price went down, largely a self-reinforcing spiral. We know how much was sold and who the sellers were. What we don’t know is the identity of the buyers. There is a good reason for that. The buyers have tried mightily to hide their identity.


I believe that the big buyer of the 10 million ounces of gold liquidated in the GLD was JPMorgan, either alone or with other collusive commercial banks. The same methodology I’ve previously attributed to a potential Mr. Big in SLV (also probably JPMorgan) is at work in GLD. If one (or 2 or 3) big buyers in GLD had merely purchased the 100 million shares that were sold in GLD, that would have quickly pushed the big buyer(s) over the 5% SEC reporting threshold thereby revealing their identity. But by having the gold redeemed out of the trust and the metal being purchased (instead of shares), stock reporting requirements are evaded. A single holder, perhaps working with a few collusive partners, have come to own what is, effectively, almost a quarter of the world’s largest gold stockpile and no one is the wiser.


I’m not suggesting that JPMorgan did anything wrong by intentionally evading SEC reporting requirements. That potential infraction pales in comparison to the real crime. In this crime (actually more egregious in silver than in gold) the crooked bank manipulated gold prices lower, via the usual COMEX price-fixing mechanics, to induce GLD shareholders to sell. This was a planned and executed operation that left no stone unturned.


From late November, the commercials as a whole, bought more than 160,000 net COMEX gold contracts on declining prices, the equivalent of 16 million ounces. When you include what came out of the ETFs and exchange warehouses it adds an additional 15 million ounces. Together that totals 30 million ounces ($45 billion). Options and over-the-counter derivatives transactions could double that amount. This likely brings the total of their purchases to 50 million ounces ($75 billion). This sound like a huge number but it’s quite manageable for these big banks and it represents a small fraction of the total derivatives market. The scope of their purchases is enormous and the bullish implications are staggering.


I believe that JPMorgan and the commercials have come to hate the COT and Bank Participation reporting data because it reveals what they are up to in exquisite detail. Wrong doers prefer to operate in the dark, under rocks. But the one thing the available data shows is that the big buyers on the wicked price decline have been the commercials. On the one hand, I find it deplorable that big banks are allowed to manipulate our markets for their own benefit, making a mockery of our laws and corrupting our regulators. On the other hand, watching JPMorgan and the commercials buy so aggressively in gold and silver only leads to the conclusion that these crooks have a plan for much higher metals prices to come. If, as I contend, JPMorgan picked up at least 20 million gold ounces they shook out from the GLD and elsewhere, a $300 dollar gold rally will net them $6 billion in ill-gotten gains on that position alone. It could be much more if they are more ruthless in creating higher prices. Generally, with these crooks they usually exceed what you think they are capable of.


It appears to me that JPMorgan and their ilk have bought absolutely massive quantities of gold and silver in many different markets. Unfortunately, much of that buying has come as a result of the deliberate and successful manipulation of price in order to force others to sell. I don’t believe that is fair or even legal. Nevertheless the bloodless verdict of the market suggests we are going a lot higher at some point soon.


For subscription information, see www.butlerresearch.com (http://www.butlerresearch.com/)

[mamboni]

Gold Cycle Bottoming Soon - 28 May 2013 This cycles specialist can't say why, but he does believe a cyclical low in gold is near...

DAVID GURWITZ is managing director of Charles Nenner Research (http://charlesnenner.com/family-offices.php). Providing global macro research to a broad class of clients across the world, and increasingly to family offices, over the last decade, Gurwitz specialized in cycles analysis, looking for patterns in where prices turn.
Here Gurwitz speaks to Hard Assets Investor (http://www.hardassetsinvestor.com/) about his analysis of financial cycles, plus the outlook for gold in particular.


Hard Assets Investor: You guys made a terrific call in gold a couple of years ago when your research, and the algorithms that you used, called the top at $1900. So I'm very curious to hear what you have to say about gold now, as well as some of these other markets.
David Gurwitz: First let me tell you how it works. Gold happens to be a specific category that fits in with everything else.

Cycles come from the Greek word "circle". And what we do is we take any data series and find basically repeating top-to-tops. I'll give you an example. In baseball, to hit for the cycle, you have to have a single, double, triple and homer. People think of the nine-year cycle.
If you find a top in gold every five weeks – forget the price – a top every nine weeks, top every 14, top every 37, you have, in effect, a lot of sine curves. When they're all topping, we don't know why. We don't know why things happen. When they're all topping, we just assume that's a top. And they were all topping at $1900.

HAI: You probably know there's a book, Fooled by Randomness. Sometimes we can look at things, and they kind of look like there are discernible patterns there, when in fact what it really is, is randomness. But we perceive it as some sort of regularity. Can you be fooled by this phenomenon? Because if we knew precisely that cycles occur at a specific moment, somebody who knew that would own the world in a month. It would be so easy to make money.

David Gurwitz: Right. There's another book, called Chaos, which basically says there's not randomness, that in fact it is predictable. There's patterns within chaos; it's the other side. Let me tell you what Einstein says about relativity: "When a man sits at a radiator for a minute, it feels like an hour. When a man sits with a woman for an hour, it feels like a minute." That's relativity.
HAI: Well, we're getting too deep for this show...

David Gurwitz: So anyway, we don't believe it's random. We don't agree with that premise, so therefore we believe that you can find patterns. And we call the top an apple. Natural gas – what came first, the cycle top or what I'm about to tell you?

The banks in Canada lent money to the nat gas producers when that gas was $6 not long ago. We had said that nat gas was going to a $1.70 after $5, $4.50, $4. All of a sudden those loans – like a lot of people's houses, with the mortgages under water – bank loans are under water too to companies. They started pressuring the nat gas companies to sell to pay back the loans. They started selling, price goes to $3, $2.10. It got to $1.90.

What came first, the cycle top or the actions to the banks? We think the new shows all say banks forcing producers to sell. We think it was the cycle top that said it. There's a cycle bottom coming in gold very shortly. We've had seven up years with gold.

HAI: But it doesn't necessarily tell you the price or the proximity of the price. It just tells you, here's a time window where we're going to hit a bottom.

David Gurwitz: We also do price too. Take football. You know the quarterback goes 1-2-3-4 and he throws. Same with us. Cycles just give you direction. Target algorithm, which is based on rocket science, believe it or not, and quantum physics...it does get very deep, gives you level. And so we look for timing, level and direction. And when they don't all line up, we will stay out, which is something most people have a hard time doing. So they're in pain staying in the gold trade. Now as you probably know, a lot of people are sitting now crying...and they're probably going to sell.

HAI: Not if they're short.

David Gurwitz: Not if they're short, which is also mostly not so easy to do. When the gold price (http://www.bullionvault.com/guide/gold/Gold-price) gets to the bottom – which we think is coming relatively soon – they're going to sell out and we think there's going to be a great opportunity.

HAI: And what price would that be?

David Gurwitz: High $1300s is what we're looking at.

HAI: So the recent sell-off that brought us into the mid-to-low $1300s, it was like a capitulation.

David Gurwitz: Almost. We'll retest that level probably, because we want everything to line up. The cycle, the target and the other things we look at. Also there's a triple top forming in the Euro right now. Again, I won't go through the details. This is the stuff we do. We're a little technical, but we think the technicals are in fact fundamental.

HAI: We've had this rally in gold now for basically 10, 11 years since 2001. I guess you're saying it's coming near the end of this correction. It would suggest from what you're saying we're in the next leg of this long-term bull market?

David Gurwitz: Yes. But you can't extrapolate from that our macro view of commodities in general. Everything's different. Gold is going to go up, based on our cycles, based on our forecasts. Silver same, but copper is down. We got out of copper six, eight months ago. We have a lot of sovereign wealth fund clients. They don't want to trade next week, next month. They want to know four years from now. So copper's down, which indicates something about not such a great economy.

Nat gas, which went from $6 to close to $1.70, is now in the low $4 range, and very shortly we think we're going to short it again back to its low. But grains we think are bottoming in several months. And there's going to be a rally.

People say stocks and bonds always go in opposite directions. If you bought stocks and bonds in 1981, it was both a great trade. They both went up. If you bought them both in 2000, bonds have done well, but stocks are flat from 2000. If you bought them from 2007, bonds have done well, but stocks haven't. So you can't just say A implies B.

HAI: Let's talk about equities – the Dow making a new historic high, the S&P at a new historic high. But a lot of people are saying this doesn't add up. Because the economy is not that strong. We still have high unemployment.

David Gurwitz: Long term, we see stocks going down for the next seven years over 60%.

HAI: Based on what?

David Gurwitz: Cycles. That's all we know.

HAI: Well, how did it work in 2007/2008...?

David Gurwitz: We took everyone out in the summer of 2008.

HAI: That was right before the Lehman crisis.

David Gurwitz: Right before. We don't know what's going to be the cause. The reason shows up afterwards, after the cycle is set.

HAI: So you really didn't get the top in that one.

David Gurwitz: We got out. Prior, when the Dow went from 1008 to 1405, we called that on CNBC; it's on our site. We went back in and got out in the summer of 2008. It was not a front end of 2008, as you can remember. We went long the beginning of 2009, more or less until now.

HAI: Again, based on the cycle?

David Gurwitz: Only based on the cycle; we admit we don't know anything else. How often do people come on and say we don't know? We're brutally honest. So stocks are topping. They're going to go straight down.

HAI: Is there a signal, a sell point?

David Gurwitz: Yes. People should go right to our site and get the research, because the answer is, we're monitoring it and we're very close to a top now. It's also been a top in 2000/2007/2013. Now it's much weaker than it was in 2000.

HAI: Now, many people for so long have been saying it's a bubble, yet bonds have been very, very strong.

David Gurwitz: There was a high 30 years ago in rates. Sixty years ago it was low. The US government was actually selling, as opposed to buying, savings bonds 2.5 percent in 1950. In 1920 rates were high, 1918/19 rates were low, 1860 the Civil War rates were high. So the next 30 years, you're going to see increasing rates.

Starting this summer, there's going to be one more rally. Same thing: cycles. So bonds are going to be a great short for the next two decades starting this summer.

HAI: I don't know about that one. But very interesting stuff. David Gurwitz, thank you very much.

Hard Assets Investor (http://gold-silver.us/user/hard_assets_investor), 28 May '13

Hardassetsinvestor.com (http://www.hardassetsinvestor.com/) is a research-oriented website devoted to sharing ideas about investing in the natural resources sector. Published by Van Eck Associates Corporation, the site offers an educational resource for both individual and institutional investors interested in learning more about commodity equities, commodity futures, and gold – the three major components of the hard assets (http://www.hardassetsinvestor.com/) marketplace.

[Serpo]

Don't be a tease Serpo. Tell us some more! At the risk of appearing obtuse, what does it mean?

That JPM would be trying to buy silver through bullion dealers and anyone they have sold too , basically and this guy is in Australia.

[mamboni]

From Richard Russell at KWN



Dear Russell,

Yesterday, after reading your comments about gold being manipulated in the crudest way, I went to a bank in Singapore to see what, if any, gold activity there was. The bank had arranged a rope line (new) to handle the volume of people, at which I waited 45 minutes in a queue to approach the “Gold Window.” Once at the window, your order would be taken and then you would be directed to what amounted to several rows of chairs to await your order to be filled.

All of this was new since my last visit about a year ago.As you can see from the photograph, 100 gram and 50 gram bars were sold out. The only things available were a few one ounce coins, but plenty of kilo bars.

We saw several people bringing in suite cases with roller wheels. I asked what that was for, the reply was their orders were too heavy to carry by hand. I asked if this was normal, the answer was yes. The whole situation was interesting to watch.So maybe the money managers are selling paper gold, but individual investors are buying physical gold with both hands in Singapore.

Best Regards,Stephen J.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/28_Richard_Russell_-_Just_One_Example_Of_Massive_Gold_Demand_files/KWN%20Russell%20I%205%3A28.jpg