• Gold: 1,255.13 -0.67
  • Silver: 15.97 -0.07
  • Euro: 1.175 -0.001
  • USDX: 93.932 0.443
  • Oil: 57.26 0.11

The desperation is mounting

The desperation is mounting, as this "fat finger" caused gold to fall $13 in ONE SECOND at 10:15 AM; not un-coincidentally, as it was up 1.0% just after the 10:00 AM KEY ATTACK TIME. With the December contract bordering on default - as at least 275,000 ounces have stood for delivery but not seen gold leave the registered inventory category - and the "commercials" at their most bullish positioning ever, something appears ready to give. Germany only received 37 measly tonnes of the 300 it is supposed to receive over a seven-year period in 2013; and as it turns out, the gold received wasn't even their original gold.

The end is nigh

Today, King World posted an article showing gold and silver prices at their most oversold levels in HISTORY; i.e, well below the lows in both 2008 and even 1980. I wrote about it this morning, so please check the Miles Franklin blog later today. As for the markets, they opened the year with a PM surge, whilst interest rates remained near their highs and stocks plunged. The walls could close around TPTB at any time; and perhaps the 400,000 ounces or so of gold scheduled to leave the COMEX registered inventories of just 494,000 this week will be the catalyst. Or perhaps not; but either way, the end is nigh on a PAPER shorting scheme that has created record PHYSICAL demand - which likely, will be dramatically higher in 2014, whilst the mining industry starts to see equally dramatic production declines.

Ending the year in style

Looks like the Cartel is ending the year in style; starting with perhaps the 30th straight "Sunday Night Sentiment" attack; followed by the 143rd 2:15 attack in the past 158 days. And oh yeah, the only news this morning, the Housing Index, was much worse than expected.

The odds of a physical issue are only growing

Yesterday, I did an Audio Blog with Harvey Organ (to be published tomorrow), who is in fact alarmed by the drain of gold inventory at the COMEX and LBMA (in the latter case, via redemptions of GLD). When the December COMEX contract closes on Tuesday, we may well have no more than one or two hundred thousand registered ounces left. February was an even bigger delivery month than December this year (which typically has been the biggest); and thus, the odds of a physical issue are only growing - particularly with gold and silver still trading below their respective costs of production.

SOMETHING'S gotta give soon - and WILL!

Per my Friday article, http://blog.milesfranklin.com/proof-of-the-tapering-mirage, it appears the Fed has been MASSIVELY lying about the amount of tapering all along; to the tune of roughly $45 BILLION per month! Not only that, they entirely discarded the 6.5% "unemployment rate" threshold for raising rates; instead, stating they'd maintain exceptionally low rates "well past a drop below 6.5%." And even if they weren't LYING all along about the amount of QE, a $10 billion/month "taper" is immaterial in a program that will STILL print $900 billion in 2014 - causing the Fed's balance sheet to surge from $4 trillion today (owning 1/3 of all Treasuries, and 1/2 of all MBS's) to nearly $5 trillion by year-end.

PHYSICAL Buying Reaction - Worldwide

How can I possibly summarize the Fed's pathetic "taper" of $10 billion/month; whilst lowering its "unemployment rate" threshold, and essentially promising ZIRP until at least 2017? I know, a veritable money-print-a-thon. Please read my new article tomorrow, as following yesterday's "pre-FOMC" commentary, I did the equivalent of a "post-Mortem" this afternoon.

The Cap of Last Resort

Well, the Cartel has erected its prototypical "CARTEL HERALD" algorithm at the standard 12:00 pm est "cap of last resort," at the current "line in the sand" of $20/oz silver, for perhaps the fourth time in the past five trading days. And what a shock, at gold's own "line in the sand" at the equally KEY ROUND NUMBER of $1,250/oz.

What more can one say?

What more can one say? Clearly, the Chinese announcement last week that it no longer intends to accumulate foreign currency reserves was a death knell for "tapering"; and shortly, PM price suppression. Today's attack - amidst utterly ZERO news other than much higher than expected jobless claims - was clearly motivated to quash this week's budding PM momentum. However, with physical supplies rapidly dwindling (what will COMEX registered inventories look like after the 12/31 delivery period ends?) and surging global demand (23% Indian premiums!), it's only a matter of time before reality overcomes manipulation.

PHYSICAL demand continues to surge

Well, another bogus NFP report is come and gone - not withstanding its obviously weak "internals," and gold and silver continue to hold well above the June lows; which they darn well should, given both metals are trading well below the marginal all-in cost of production. The COMEX "Commercials" are again covering shorts maniacally; yet again, on the verge of turning "net long" for the first time in the entire 13-year bull market. The last time their shorts were this small was the last week of June, when gold and silver bottomed, commencing on a sharp, two-month rally.

Peru miner Buenaventura reports strike at thier...

The purpose of the strike is to seek the restatement of 12 workers terminated for serious misconduct against labor law. While Buenaventura fully respects labor and union workers' rights, it has strict guidelines regarding workers who have violated the law.