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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: Ed Steer this morning
America Should Open Its Vaults and Sell Gold
¤ Yesterday in Gold and Silver
Despite the wild looking Kitco gold chart below, not much happened in the gold world on Tuesday. The low [around $1,340 spot] occurred around 10:00 a.m. in London. The gold price then struggled back to finish about three dollars lower than its Monday close. Gold's high of the day [around $1,355 spot] was about thirty minutes after trading began in the Far East on Tuesday morning.
There were no changes reported in either GLD or SLV yesterday. At the Zürcher Kantonalbank in Switzerland, they reported adding another 38,632 ounces of gold and 98,896 ounces of silver to their respective ETFs last week. As usual, I thank Carl Loeb for these numbers.
The U.S. Mint had a sales report yesterday. They sold another 4,500 ounces worth of gold eagles... plus another 475,000 silver eagles. Month-to-date, gold eagles sales total 41,000 ounces... and silver eagles sales are up to 1,225,000.
Over at the Comex-approved depositories, they reported adding another 352,543 ounces of silver to their stocks on Monday. All the activity was at Brink's, Inc... and the link is here.
In New York, gold got hit for eight bucks the moment that the equity markets opened for the day at 9:30 a.m... with the New York low coming 20 minutes later at the London p.m. gold fix about 9:50 a.m. Eastern time.
Silver's price path was similar to gold's... with the low [around $22.95 spot] occurring in London at the same time as gold. Silver's high came on a bit of a price spike that occurred around 2:15 p.m. in New York... shortly after electronic trading began. The high price tick was $23.50 spot. However, a not-for-profit seller showed up and put an end to the merriment in short order.
All in all, it was "just another day off the calendar"... as Ted Butler is wont to say. But, if you haven't noticed it already, prices appear to be more 'volatile' than usual lately.
The world's reserve currency rose about 40 basis points up until 10:00 a.m. in London on Tuesday... but then proceeded to fall about 60 basis points... and closed in New York at 5:15 p.m on its absolute low of the day.
The shares never saw positive territory all day... with the HUI's absolute low coming shortly before 10:00 a.m. Eastern time at the London p.m. gold fix. From there, the shares slowly gained ground as the gold price slowly recovered... and finished the Tuesday trading session down only 0.44%.
The CME Delivery Report showed that only 85 gold contracts were posted for delivery on Thursday... with JPMorgan, Deutsche Bank and the Bank of Nova Scotia all trading in their house [proprietary] accounts. JPMorgan said that they were going to stop this practice... but it's obvious that they haven't yet. Only one silver contract was posted for delivery. The link to all this 'activity'... if you wish to dignify it with that name... is here.
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¤ Critical Reads
SubscribeWhere's The Note
I'm starting off my stories today with one last item on the current real estate mess. I received an e-mail from reader Kipling Lee yesterday. He provided a website called "Where's The Note" that you can go to, to check and see whether the bank you're making your mortgage payments to has the original mortgage note... or not. Kipling says [and I agree] that everyone needs to take a few minutes to figure out if their mortgage is affected. The link to the wheresthenote.com website is here. Good luck!
Bank of America: Too Big to Fail?
My next story is about America's too-big-to-fail banks... and was sent to me by reader U.D. I must admit that some of the commentary in this relatively short article is very heavy reading... but it's not the parts that you don't understand that will scare you half to death! The article deals primarily with Bank of America... but all the other major banks are in the same boat. The headline reads "Bank of America: Too Big to Fail?"... and is posted over at mybudget360.com... and the link to the article is here.
The Violence of the Storm, the Destruction of the Middle Class and the Coming Gold Standard
The next item today is a longish piece that's posted over at the Swiss website, thedailybell.com. It's an interview with our own Doug Casey. It also has a longish headline to go with it... "The Violence of the Storm, the Destruction of the Middle Class and the Coming Gold Standard". The link to this article was sent to my by reader Carl Lindfors... and it's a must read from one end to the other. The link is here.
The long and short of what's happening with silver
Reader Ray Wiberg sent me a story about silver that was posted over at the mineweb.com yesterday. The headline to this article reads "The long and short of what's happening with silver". Author Chris Mack say that things appear to have changed in silver trading with the bullion banks nearing a position where they may have lost control of the markets. From what I read in this piece, virtually all of the information in this article originally came from Ted Butler... which the author freely acknowledges. So, if you're a Ted Butler fan, reading this piece is the equivalent of reading one of Ted's own essays. Needless to say, it's a must read as well... and the link is here.
Goldman Tells Clients To Buy COMEX Gold At $1,364.2, Raises 12 Month Gold Forecast From $1,365 To $1,650, Silver To $27.60
The next story today is one that was posted over at zerohedge.com yesterday... and was sent to me by reader 'David in California'. The headline states "Goldman Tells Clients To Buy COMEX Gold At $1,364.2, Raises 12 Month Gold Forecast From $1,365 To $1,650, Silver To $27.60". Without doubt, G.S. and other firms, will be revising these price figures upwards long before we see the end of 2011... and it won't be the first [or last] time they've had to do it. It's a long read, with lots of graphs and charts. And, as Tyler Durden says... "here is Goldman's extended thesis on gold, which is a simple one, and fundamentally identical to what we have been saying for years: buy gold until the Fed begins to tighten. Which means forever and never." This is worth spending a few minutes on... and the link is here.
Should U.S. say it's selling gold before world learns it's long gone?
My last three items today are all related to a story that appeared in the Financial Times out of London yesterday. The FT headline reads "America Should Open Its Vaults and Sell Gold". The author is one Edwin M. [Ted] Truman. Almost from its inception back in 1999, GATA noted that Truman's name always kept turning up at the center of the gold price suppression scheme.
Along with the GATA release linked below... both Jim Sinclair and Jim Rickards have pounced on this story... and their comments are linked as well.
I can't begin to tell you, dear reader, just how important this issue is. All three pieces should be read carefully and thoroughly. The first is the GATA dispatch containing the original FT story. Chris Powell's headline reads "Should U.S. say it's selling gold before world learns it's long gone?" His extensive preamble [plus all the associated links] are must reads as well... and the link is here.
Jim Sinclair -- Great Impetus to the Bullish Side of the Market
As I mentioned above, gold trader and mining executive Jim Sinclair gave King World News some choice comments about former Treasury official Truman's story. Sinclair's comments are headlined "Jim Sinclair -- Great Impetus to the Bullish Side of the Market" and this must read interview is linked here.
Last Gasp of the Fiat Money Regime
In another blog posted over at King World News in the wee hours of this morning, comes commentary on this issue from Jim Rickards of Omnis Inc. Jim basically rips Truman a new one in an essay headlined "Last Gasp of the Fiat Money Regime". This, too, is a must read... and the link is here.
Yale Ph.D., and Former Fed Member Tells Obama to Pull a "Gordon Brown" and Sell All of America's Gold
And I couldn't resist just one more story on this. Rickards mentions in his KWN commentary above that there was also an article about Truman's FT column posted over at zerohedge.com. Well, I just dug it up... and it's a very short, but very vitriolic paragraph. Tyler Durden doesn't mince words. The headline reads "Yale Ph.D., and Former Fed Member Tells Obama to Pull a "Gordon Brown" and Sell All of America's Gold"... and the link is here.
¤ The Wrap
If you want government to intervene domestically, you’re a liberal. If you want government to intervene overseas, you’re a conservative. If you want government to intervene everywhere, you’re a moderate. If you don’t want government to intervene anywhere, you’re an extremist.- Joe Sobran [1946 - 2010]
For such a big story from such an 'important' person, that Financial Times article had no effect on yesterday's gold price... at least not that I could discern. In the past, such a story would have been the opportunity that the bullion banks were looking for to arrange a sell-off and ring the cash register. Not this time.
Volume in both metals on Tuesday, considering the price action, was very high once again. Ted Butler feels that many more day traders have entered the Comex futures market... driving up the volume, but not necessarily driving up prices... as virtually all day traders close out their positions by the end of the trading day, which leaves the market basically unchanged. It's the largest institutions that ultimately are left to drive prices up or down... and the day traders are just milking the volatility for all its worth.
As I close out today's column, I see that there has been a lot of price activity in Far East trading... with both metals rising noticeably right at the London open. Volume is already very heavy for this time of day... so it appears that the bullion banks are involved on the short side... once again attempting to prevent a parabolic rise in price. It's obvious that nobody is taking what Ted Truman had to say very seriously.
It could be an interesting day when New York begins to trade.
See you on Thursday.
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