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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: from Midas report tonight
And nothing could be finer in the GATA camp right now. For a change we are on a bit of a roll. Many of you know one of GATA’s staunch supporters, John Brimelow, a former Stanford Business School grad who was a notable figure in the gold share world and now with his own gold commentary to institutions. John has presented at our last three GATA conferences and is smart as they come. He sent me his commentary today for your perusal as it pertains to the FT GATA breakthrough…
Tuesday, January 29, 2013
Indian ex-duty premiums: AM $3.32, PM $6.29 with world gold at $1,659.40 and $1,661.63. Adequate for legal imports. The rupee firmed 0.3% to close at $1= R53.76 (R53.91). The stock market fell 0.56%.
As noted last night, local Vietnam gold today stood at a $129.26 premium to world gold of $1,659.25 (Monday $135.01/$1,659.10).
Shanghai gold closed at a high premium of $11.53 to world gold of $1,663.15 on volume equivalent to 9,084 NY lots (Monday $9.54/$1,661.75/8,678 NY). "Delivery Volume" continued heavy at 10.44 tonnes (Monday 12.092 tonnes). As usual nowadays gold saw its overnight high, up $11.10 in Feb close to the Shanghai close. The yuan was little changed at a 9.67% post $US "depegging" appreciation (Monday 9.69%).
On volume equivalent to an unexciting 8,042 NY lots, TOCOM saw open interest rise by 1.485 tonnes, 477 NY, but the public did nothing to its net long (down 0.037 tonnes or 0.2%). The active contract closed down 4 yen but world gold rose $4.40 during the session to go out $6.70 above the NY stock market closing level.
In a development which will be astonishing to veterans of the Gold Wars, the Financial Times today in a discussion emphasizing how drastic the Bundesbank’s shift to transparency about its gold activities has been salutes the Gold Anti Trust Action Committee (GATA):
"…it is not the Bundesbank’s decision to move its gold, but its decision to be more open about where it is located and how it has traded it in the past, that is most welcome. In one
document published on its website earlier this month, the Bundesbank lists, for example, each one of its gold transactions since 1951.
In another, it details how much gold it has held in each of New York, London, Ottawa, Paris, Bern, Frankfurt and Basel since 1951, and how much it was lending to the market at any one time. This reveals the interesting titbit that the Bundesbank moved almost 1,000 tonnes from London in 2000 and 2001. It also shows that the German central bank halted all gold lending activity in 2008 when the financial crisis began… That the Bundesbank has been nudged into this new-found transparency must be chalked up as a victory for the groups of investors – most prominent among them, the Gold Anti-Trust Action Committee, or Gata – that have for years been asking central banks to reveal their activities in the gold market." GATA has been completely justified in its complaints that its views have been excluded from the MSM for years. This is a remarkable development. Equally remarkable is the willingness of the Bundesbank to annoy the U.S. Treasury, which should of course come under pressure to adopt the same policy. The attention of the FT was obviously drawn to the website posting after it became clear that it had escaped GATA’s numerous scouts. See
Buba’s new era of openness on its gold or the GATA press release Yikes! Financial Times makes GATA's case comprehensively
The ECB weekly statement of condition shows no change in "gold and gold receivables" (last week also unchanged). Today after the Chinese close the rupee gave back some ground and $US gold weakened. However some buying on the PM fix stopped the slide and gold, unusually, has not softened on the NY open. CME website volume as of 8AM was a heavy 75,000 lots and as of 9AM it was some 109,000 lots. Active capping is going to be needed to stop gold creeping higher… Tuesday, January 29, 2013 The CME Final for Monday confirms that volume was 295,408 lots, 12.82% above estimated. Some 56,000 lots of this were switches out of the Feb contract. Open interest, however, is reported to have fallen an astonishing 19,020 lots, 59.15 tonnes or 4.15%, to 438,918 lots. This takes open interest back to the area of Jan 7th, eliminating the buildup associated with the subsequent attempt on $1,700. (The Preliminary had suggested a fall of 1.86 %.) Gold was down 0.22% at the floor close and 0.26% at the stock market close. It is difficult to accept an open interest drop of this size was negotiated in the market. More likely some massive short was allowed out. While this does imply some ominous actors are present in gold, it also suggests the overhead barrier has been lifted and that the operation has been completed. Arguably the path is now clear for an Asian physical demand-driven recovery.
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