GLD vault defragmentation

Warren has a cool animation showing the addition and redemption of pallets of gold bars out of GLD’s vault, done in the style of the old PC disk defrag programs, at the screwtapefiles blog. A few comments on the 5 minute animation (see screenshot below): During the redemptions in 2013, most of the bars are . . . → Read More: GLD vault defragmentation

Student of the physical market - demand doesn't drive the gold price

Eric Sprott and David Baker has a new article out discussing central bank buying of gold and particularly China. I agree with his conclusion that this is an important demand side shift in the market but then Sprott plays it up way too much with statements like:

“… there isn’t a physical market on . . . → Read More: Student of the physical market – demand doesn’t drive the gold price

Tungsten Fake Gold Bars

Been busy at work and home, hence the lack of posts. I’ve recently posted on Tungsten fake gold bars for those who may not have seen it. I’ve posted before on this issue here and here.

Coincidentaly, the Mint has recently bought a “Panalytical wavelength dispersive X-Ray Fluorescence (XRF) instrument” for $470,000. Before I . . . → Read More: Tungsten Fake Gold Bars

Elliott wave predits $32659 gold on 16 Jan 2015

Nick from Sharelynx with help from Geoff S has put together an Elliott Wave theory prediction using ‘The Golden Mean’ & ‘Fibonacci Sequences’ to arrive at the future price of gold. Click here for the chart.

It predicts the next peak as $3,559 in Jan 2013 with an eventual peak of $32,659 gold on . . . → Read More: Elliott wave predits $32659 gold on 16 Jan 2015

Catch Up

Been stockpiling the following for comment:

Silver shortage vs coin shortage

I’ve been on this issue for a long time, now I have backup from David Morgan: In 2008 there was no shortage of all silver per se, but there was a shortage of coins, bars and other retail “investment” items. The evidence: Much . . . → Read More: Catch Up

Italian banks pawning $976m of gold with Scotiabank?

In January FT Alphaville’s Izabella noted that “Negative rates imply that banks are pawning gold in exchange for dollars. A move which happens to depress gold prices. But it’s always been difficult to establish who was pawning what and when, and how prevalent the practice really was.”

She quoted Goldman Sachs who thought “this . . . → Read More: Italian banks pawning $976m of gold with Scotiabank?

Martin Armstrong on metals manipulation

Below are some relevant extracts from Martin Armstrong’s The Analytical Shill. The article is generally about how research and analysts are conflicted and how analysts and investors and gurus can be blinded by their biases. The paragraphs below are straight from the article and will jump around a bit because I’ve just pasted them . . . → Read More: Martin Armstrong on metals manipulation

Inconsistent nonsense

Worth reading this response by Victor the Cleaner in FOFOA comments to this question: “At the moment, in order to influence the Gold price downwards, all that needs to be done by the authorities in LBMA and COMEX, is to raise the margin requirements.” This is complete and utter nonsense. LBMA is a trade . . . → Read More: Inconsistent nonsense

Survivor Bias and TBTF Tyranny

London Banker “has been a central banker and securities markets regulator during a varied and interesting career in global financial markets” and is a very credible commentator IMO. From his latest:

“Perhaps gold is being used as collateral for margin and cash liquidity, sold by counterparties to bring the price lower, leading to margin . . . → Read More: Survivor Bias and TBTF Tyranny

Expert says: Money spent on gold is practically wasted

Regular readers of this blog know I watch reports from Vietnam as an indicator of how Governments deal with large flows of money out of fiat and into gold. Non-first world countries feel this more I think and thus they give us a view into the future as to how first world countries will . . . → Read More: Expert says: Money spent on gold is practically wasted