White Shoe Boys

Goldman Sachs: Cover Your Gold Shorts

"This morning, Goldman Sachs has put out an advisory recommending that clients close out their short positions in gold. Just weeks ago on April 19, GS cut its short- and long-term gold forecasts. At the time, analysts Damien Courvalin and Jeffrey Currie told clients that 'should our expectation for lower gold prices continue to prove correct, the fall in prices could end up being faster and larger than our forecast.' On April 12, gold fell on its worst two-day plunge since futures first started trading in New York. Despite the advice to close out short positions, it appears GS wants to have its foot in both the bullish and bearish camp." Continue reading →

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Takedown Of Paper Gold Unleashes Global Run On Physical Gold And Silver

"Precious metals dealers now find themselves being overwhelmed with orders in the United States, in Canada, in Europe and over in Asia. Will this massive run on physical gold and silver soon lead to widespread shortages of those metals? Instead of frightening people away from gold and silver, the takedown of paper gold seems to have had just the opposite effect. People just can't seem to get enough physical gold and silver right now. Those that wish that they had gotten into gold when it was less than $1400 an ounce are able to do so now, and it is absolutely insane that silver is sitting at about $23 an ounce." Continue reading →

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Gold Crash 2013 – Deliberately Engineered?

"Traders will be looking for a significant turnaround to the upside in price before entering long positions. However, a long-term, fundamentals-based trader has to look at the low price as a buying opportunity. I can't prove it, but I think the fundamentals will drive the long-term market more than these short-term events. The fight between pricing from the physical market for bullion and that from the 'paper market' of futures is showing signs of discrimination and disagreement, as the physical market is booming, while prices set by futures are seemingly pressured to go nowhere. In short, I think this is a strong buying opportunity." Continue reading →

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US Mint’s Sales of Gold Coins Soar After Futures Prices Plunge

"The U.S. Mint in April has sold 153,000 ounces of American Eagle gold coins, the highest in almost three years, after futures prices started the week by plunging the most since 1980, moneynews.com reports. Sales have more than doubled from March and surged sevenfold from a year earlier, data on the Mint’s website showed. The amount for all of May 2010 was 190,000 ounce. This week, retail sales and jewelry demand soared in India, the world’s top gold buyer, and China, the second-biggest, after futures in New York slumped into a bear market, touching the lowest in more than two years. Coin sales also surged in Australia." Continue reading →

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Gold’s Black Market?

"Have investors really lost faith? We read that gold demand in Asia and India remains very strong and informal reports from gold buyers (for physical gold) seem to indicate that it is difficult to buy gold at any price. Silver, not much better. One explanation for this would be that the paper market and the physical market are diverging. The paper market, according to those who see this crash as manipulated, is easy to push down. The physical market might reject these manipulations were it a mark-to-market operation. But it is not. The physical price of gold is apparently fixed twice a day by a consortium of wise men." Continue reading →

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John Paulson’s Gold Bet Loses Almost $1 Billion In Rout: Chart of Day

"Hedge-fund manager John Paulson’s wager on gold wiped out almost $1 billion of his personal wealth in the past two trading days as the precious metal plummeted 13 percent. Gold’s tumble since the start of the year has cut his riches by $1.52 billion on paper. Paulson started the year with about $9.5 billion invested across his hedge funds, of which 85 percent was in gold share classes. Paulson is sticking with his thesis that gold is the best hedge against inflation and currency debasement as countries pump money into their economies, according to the New York-based firm, which manages about $18 billion." Continue reading →

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Volcker Travelled as Chase Bank Official to Kuwait; Was Viewed as Federal Reserve Official

"How lucky for Chase Manhattan Bank. Below from a new batch of cables released by Wikileaks: A 1975 cable on Paul Volcker travelling to Kuwait as an official of Chase Manhattan Bank, who the State Department reports will be viewed by the Kuwaiti government as a senior Federal Reserve official." Continue reading →

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Which Dominoes Are Next to Fall in Europe?

"As we saw in The Real Cyprus Template (the one you're not supposed to notice), once the smart money exits the at-risk banking sector, it is allowed to fall. This suggests that one way to identify which dominoes are likely to fall next is to look at the smart money's deposits in each nation's banks. If the smart money has pulled most of its capital out, ECB and Eurozone authorities have a diminishing stake in propping up the domino. As a result, its fall becomes increasingly likely." Continue reading →

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Who Got the Fed Minutes in Advance of Everyone Else and Why?

"This is really an odd list and appears to be some type of very insider, VIP group. It contains major investment banks, such as Goldman Sachs, high powered law firms, such as Sullivan Cromwell and bank lobbying firms. I am on the list to receive FOMC minutes and other Fed releases, but did not receive the FOMC minutes in advance, like those on this list did. The real question is what is this list about, how does one get on it and do they receive any type notices from the Fed that are not released to anyone else? Indeed, the BIG question is why was this list put together?" Continue reading →

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These 12 Banks Got the Fed Minutes a Day Early

"It wasn't just Capitol Hill staffers and trade groups that received the Federal Reserve minutes a day early. Many banks and other financial institutions also got an early look at the minutes. A list of recipients obtained by CNBC reveals that at least 12 banks, a Wall Street law firm, a hedge fund and a private equity fund were on the distribution list that got the minutes early. The banks included Fifth Third, Citigroup, UBS, Barclays, U.S. Bancorp, Goldman Sachs, Wells Fargo, HSBC, BNP Paribas, BB&T, JPMorgan Chase and PNC. Sullivan & Cromwell, one of the most powerful Wall Street law firms, also got the email." Continue reading →

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