White Shoe Boys

Gold suffers worst November since 1978

"A price fall of such magnitude hasn't been seen in November since 1978, according to data from the World Gold Council, when prices plunged 20 percent. Spot gold rested at $1,252 an ounce on Friday and was headed for its biggest monthly drop since June. It has lost over a quarter of its value year-to-date, putting it on track to post its first annual loss in 13 years. Citi said this month that gold was about to enter 'phase two' of its bear market and its downside target for the metal is now $1,111 per ounce. Goldman Sachs, meanwhile, predicts a 'significant decline' in gold in 2014, with a fall of at least 15 percent." Continue reading →

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London Gold Fix Calls Draw Scrutiny Amid Heavy Trading

"Every business day in London, five banks meet to set the price of gold in a ritual that dates back to 1919. Now, dealers and economists say knowledge gleaned on those calls could give some traders an unfair advantage when buying and selling the precious metal. The U.K. Financial Conduct Authority is scrutinizing how prices are set in the $20 trillion gold market, according to a person with knowledge of the review who asked not to be identified because the matter isn’t public. The process, during which gold is bought and sold, can take from a few minutes to more than an hour. The participants also can trade the metal and its derivatives on the spot market and exchanges during the calls." Continue reading →

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Most Bizarre Hedging Statement Ever?

"This last blow-off is going to be a merciless one that will precede perhaps a movement toward a more global currency or a diminishment of the dollar reserve standard itself. Many may be tempted to sit out this latest – promulgated – rally based on the obvious and evident macro-manipulations. And I will continue to point out the various machinations that are setting up the Party. They are a long ways away from snatching the punch bowl on this one and fortunes will be made because one thing this sort of vast manipulation portends is volatility and plenty of it. Is the market a kind of Titanic heading toward an iceberg? Of course it is. But it's going to be a helluva ride." Continue reading →

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Venezuela’s Central Bank to Trade Gold with Goldman Sachs

"Venezuela's Central Bank and Goldman Sachs are ready to sign an agreement to swap or exchange international gold reserves, with a start date in October, as stated in the contract, and until October 2020. The negotiated amount, equivalent to 1.45 million ounces of gold, are deposited in the Bank of England and the transfers are made directly to Goldman Sachs once delivery times are stipulated. The operation involves the delivery of gold from the central bank, which will receive dollars from the U.S. firm. Economist Jose Guerra explains that this operation is being undertaken because of the fall in international reserves, on Nov. 15 totaled $20.6 billion, a loss of $9.9 billion in 11 months." Continue reading →

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The Fundamental Characteristic that Recommends Janet Yellen

"We expect an ever more emphatic stream of double-talk and market manipulations as the final acts of this tragedy play out. First, a Wall Street Party and then ... the ruinous aftermath. And throughout this scenario, the constant, delusional drip of increasingly unmoored statements about the Fed's competence and the government's efficiency generally. Somehow the eventual unwinding of these trillions shall be blamed on the private markets and as everything crashes down, those at the top will suggest a new and even more globalized system using the strategies that have created such domestic havoc." Continue reading →

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Geithner Joins the Wall Street Party

"He made sure of the solvency of Wall Street and of the City and having done this for four years – and no doubt seeing that the situation was deteriorating further – he decided to head for the exit. He has moved on to take the presidency of a white shoe Wall Street firm specializing in start-up investments. It is his first 'private sector' job, we're told, but one he will be good at because of his work ethic and 'commitment to leadership.'. We've been discussing the upcoming Wall Street Party, one Geithner is inviting himself to. Warburg Pincus is a big player in venture capital investing with a main focus, according to various reports on the company, in the areas of energy, technology and healthcare." Continue reading →

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Why We’re Not Sneering at the Averages

"As we can see with modern equity markets, common sense is taking a back seat to pump-priming. There is indeed a Wall Street Party going on, as we've pointed out, and the IPO market, in fact, is a large part of it. When markets are stuffed with money, volatility certainly becomes a concern. We recall the 1987 Crash was brutal, yet markets gradually climbed afterwards, culminating in the tech boom of the late 1990s. Loose money is generally a powerful support for higher averages and stronger numbers. And yes, this could continue for a while because the REAL economy has not yet felt the full impact of what's going on in the stock market." Continue reading →

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Investment Manager Explains Why 99.5% Of Americans Can Never Win

"The bottom line is this: A highly complex set of laws and exemptions from laws and taxes has been put in place by those in the uppermost reaches of the U.S. financial system. It allows them to protect and increase their wealth and significantly affect the U.S. political and legislative processes. They have real power and real wealth. Ordinary citizens in the bottom 99.9% are largely not aware of these systems, do not understand how they work, are unlikely to participate in them, and have little likelihood of entering the top 0.5%, much less the top 0.1%. Moreover, those at the very top have no incentive whatsoever for revealing or changing the rules. I am not optimistic." Continue reading →

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The Downturn in the Spot Gold Price

"Virtually from the day that Germany demanded to have its gold delivered back to the Bundesbank, three very clear phenomena have occurred: 1. The gold price, which had been trending sideways, has plummeted. 2. The physical gold held at the COMEX has been pouring out of the warehouses. 3. The amount of physical gold held by the ETFs has stopped rising and started falling. Fast. Coincidence? I very much doubt it." Continue reading →

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EU Easing to Infinity and Beyond?

"Money printing will continue and financial instruments will therefore continue to inflate, both in Europe and the US. There will be much hand-wringing about deflation and a lack of jobs, but this is not serious. The system cannot function any other way. As we have pointed out before, we are in the reflationary leg of a bear-market cycle. There will doubtless be significant volatility but the power elite controlling the financial system seems determined to create yet another blow-off. You may not have a job but if you have assets you will be able to participate in it and possibly reap significant rewards if you are careful and pay attention to the timing of additional money flows. Good luck." Continue reading →

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