Jew Paper Markets Separate From Physical Markets!

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Wade Hampton III
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Jew Paper Markets Separate From Physical Markets!

Post by Wade Hampton III » Sat Jul 25, 2015 7:59 pm

Marketwatch quoted a Sharps Pixley analyst who said that a
large seller on the Commodity Exchange (Comex) had “dumped
$1.4 billion of gold futures onto the market,” They went on
to say that “We have a peculiar world where the physical
market is seeing very strong buying, but a large leveraged
speculator is selling at these prices.”

http://www.newsmax.com/Finance/StreetTa ... id/658907/

They also added the sad fact that “our Asian colleagues
will continue to acquire while the West continues to divest.
Who is right we shall only know in the longer term.”
Meanwhile, there is a tremendous groundswell of physical
buying. We have noticed some delays on delivery of bullion
products from the U.S. Mint and other mints due to soaring
demand, which often causes the premium over spot prices
to rise.
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Wade Hampton III
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Re: Bifurcated

Post by Wade Hampton III » Mon Jul 27, 2015 11:44 pm

The paper market is telling one story. But the actual physical
bullion market is telling quite another. The U.S. Mint has sold
over 100,000 ounces of American Eagle gold coins so far in July.
That’s the highest monthly demand volume registered since
April 2013. And that’s just as of this week. There’s still
another week left to go before the final sales tally for Gold
Eagles comes in for the month of July.

https://www.moneymetals.com/podcasts/20 ... 50726-HDL-
PN&utm_medium=email&utm_campaign=weekly_headlines&AID=3818

These are truly extraordinary times in the precious metals
markets. Rarely have metals markets been so bifurcated between
the paper and the physical trade. They are challenging times,
to be sure!
Hold em Fold em
Hold em Fold em
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Wade Hampton III
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Re: Not For Faint Hearts

Post by Wade Hampton III » Tue Jul 28, 2015 7:18 pm

Jim Rickards wrote...

Gold is trading around $1,100 per ounce, a five-year low,
down over 40% from its all-time high in August 2011, and
down over 8% this year alone. According to Bloomberg,
hedge funds are net short gold for the first time since
records have been kept starting in 2006. Sentiment is
abysmal. To paraphrase the brilliant Jim Grant, gold,
it seems, has never been more unloved.

All of this is well-known to investors. The question is
why, and what does a temporary collapse in the dollar
price of gold presage? The search for answers takes us
on a journey through the inner workings of this most
important and least understood market. The first issue
to consider is what’s called the numeraire. That’s a
French term used in mathematics and markets. It refers
to the yardstick we use to measure other things. If the
U.S. dollar is the numeraire, then gold is down measured
in dollars. But if gold is the numeraire, then it’s more
accurate to say that gold is constant (that’s what a
numeraire is) and the dollar is much stronger.

In August 2011, one dollar got you 1/1,900th of an ounce
of gold. Today one dollar gets you 1/1,100th of an ounce
of gold. You get more gold for your money. How you look
at it depends on whether you believe gold or the dollar
is the better long-term benchmark for wealth. I prefer
gold, others prefer paper dollars -- take your pick.
In August 2011, one dollar got you 1/1,900th of an ounce of
gold. Today one dollar gets you 1/1,100th of an ounce
of gold. Support for this “strong dollar” view comes not
just from gold but from every major currency and commodity
in the world. Look at the list of things that are down
against the dollar over the past year: sugar, wheat,
iron ore, copper, oil, natural gas, Canadian dollars,
Australian dollars, the euro, the Japanese yen, and
so on. The only reason the Chinese yuan is not down
also is because the Chinese have made a strategic
decision to kowtow to U.S. wishes, and maintain a
dollar peg as the price of admission to the basket
used to calculate the value of the IMF’s world money
called SDRs. That decision is causing Chinese growth
to fall off a cliff, but that’s another story. The
point is this is not an age of weak gold; it’s a new
age of King Dollar. Therein lies a tale.

The last age of King Dollar started in 1981 with the
combined efforts of Paul Volcker and Ronald Reagan to
end the monetary confusion of the 1970s. It lasted until
the U.S. economy hit the wall in 2007. Importantly, that
age of King Dollar prevailed through Republican and
Democratic administrations, and included the two longest
peacetime expansions in U.S. history, 1981-1989 (92
months), and 1991-2001 (120 months). The U.S. could
afford a King Dollar strategy because we had strong,
continual growth during the decades of the 1980s and
1990s. The rest of the world would benefit from weaker
currencies that promoted their own exports.

The new age of King Dollar is different. Now we are in
a period of weak growth, global debt, and currency wars.
When the Federal Reserve and U.S. Treasury green-lighted
the strong dollar after 2012, they committed an historic
blunder. They assumed based on faulty forecasts that the
U.S. was returning to trend growth and could afford a
strong dollar, as was previously the case. Instead, U.S.
growth has continued to disappoint. Now the U.S. economy
itself is flirting with recession because of this infelicitous
mix of weak growth and a strong currency. Meanwhile, the
Fed has created asset bubbles (in stocks and real estate) and
asset crashes (in gold, oil and currencies) under its
misguided policies. A foreseeable consequence of a strong
dollar in a weak economy is deflation. Collapsing dollar
prices for a long list of currencies and commodities is the
result. The Fed is trying to offset this deflationary tendency
with zero rates, but it’s not working. At best, the forces of
deflation and inflation are cancelling each other out. At
worst, deflation will start to win this tug-of-war in the
months ahead.

In addition, there are technical factors at play when it
comes to gold. Once the dollar price of gold sinks to a
certain level, leveraged investors such as hedge funds
hit their self-imposed stop loss limits and have to sell.
Others who bought gold on margin may be forced out of
their positions by brokers. Finally, some large selling
has been coming from China in response to the stock market
crash there. Hedge funds losing money on stocks sell
gold to raise cash to meet margin calls. Hedge funds
losing money on stocks sell gold to raise cash to meet
margin calls. When hedge funds are in distress, they
don’t sell what they want, they sell what the can, and
gold fills the bill. All of these factors -- stop loss,
margin and leverage -- add momentum to gold’s downward
price movement.

These trends are unsustainable. The Fed will have to blink
when it comes to their much talked about rate hike, or
else they will cause a global crash. Look for the Fed not
to raise rates soon, perhaps for years. The gold selling
by weak hands in China and elsewhere will run its course.
Once you’re out, you’re out. The strong hands are happy to
buy at these depressed levels. There’s nothing unusual
about a 50% retracement in commodity bull markets. On the
long road from $200 per ounce to $5,000 per ounce (or higher),
a 50% pullback should be expected. If one takes $1,900 as
an interim high, a pullback to the $950 to $1,050 per
ounce area would be unsurprising. It looks like we’re
just about there. If the Fed maintains its kamikaze
tight money mantra in the middle of a deflationary
currency war, then gold and other commodities could
go a bit lower. My expectation is the Fed will wake up
to the damage done and reverse course; possibly even
launching QE4 in 2016. As this plays out over the next
few months, look for commodity and currency markets to
hear the message that the Fed will achieve inflation
“whatever it takes.” Once that message sinks in, gold
will once again shine!
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Wade Hampton III
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Re: Jew Paper Markets Separate From Physical Markets!

Post by Wade Hampton III » Mon Aug 03, 2015 3:13 am

Graphic representation of paper markets separating from physical markets. The
Chinese are clever and to their credit, there are no 'holohoax' museums over there:
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Wade Hampton III
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Re: Demand Draining COMEX Vaults!

Post by Wade Hampton III » Mon Aug 03, 2015 4:48 pm

If there are words to characterize the precious metals markets
for July, it would be “divergences” and “shortages.” There
was heavy selling in the leveraged futures market and
extraordinary buying demand and shortages in physical
coins, rounds, and bars. This drawdown activity was
masked completely by what happened to prices. Precious
metals bulls are frustrated by the complete detachment
between spot prices and physical demand. They’re wondering
how that is even possible.

http://click.e.independentlivingbullion ... HA&sysid=1

Wade says, "Oh it is QUITE possible...and THEN some! The
Jews were doing this even back in the Middle Ages when they
were issuing warehouse receipts for gold that did not exist!
When will they ever learn?"


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Wade Hampton III
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Re: Jew Paper Markets Separate From Physical Markets!

Post by Wade Hampton III » Mon Aug 03, 2015 6:50 pm

Brett Arends posted...

OK, gold (and silver) haters. It’s time to
put your money where your mouth is:

http://www.marketwatch.com/story/are-yo ... eid=yhoof2

I love writing about gold, because there’s a
secret about the gold market that absolutely
no professional financial writer or money
manager or analyst is allowed to reveal to
you all on pain of … well, trolling. The
secret? Nobody knows a damn thing!



Show me, gentlemen....

:?

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Wade Hampton III
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Re: Jew Paper Markets Separate From Physical Markets!

Post by Wade Hampton III » Sat Aug 08, 2015 11:34 pm

These are extraordinary times for the precious metals markets.
And not just because of the headline price action. Underlying
developments in the supply/demand fundamentals for physical
gold and silver are extraordinary in their own right. If
recent trends could be summed up in one word, it would be
bifurcation. On the one hand, the paper market continues
to be heavily pressured in a bearish direction by extraordinary
levels of institutional short selling. On the other, the
physical market is heating up with robust investor buying
and increasingly bullish long-term supply/demand prospects.
It’s been extraordinarily difficult for some investors to
keep their conviction and hold on to real value while paper
markets relentlessly discount it. But most bullion investors
recognize the extraordinary buying opportunity at hand.
That’s evidenced by the fact they are rushing to buy, not
sell, gold and silver bullion products at discounted prices.

http://click.e.independentlivingbullion ... jw&sysid=1
Going Going Gone
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Re: Jew Paper Markets Separate From Physical Markets!

Post by Wade Hampton III » Wed Aug 12, 2015 3:29 am

From Stansbury Mailbag:

"I'm seeing similar insanity regarding precious metals here in
southern Georgia. What little inventory the dealers have gets
marked up absurdly. The premiums are ranging from 25% on junk
silver to almost 100% on U.S. Mint bullion! And with the
dealers starving for inventory and consumers willing to pay
the markup, the metals keep on selling. Customers buying have
outnumbered the customers selling for over three years straight
now." – Paid-up subscriber Dave V.

"David Hall Rare Coins would not sell me any silver Eagles a
few weeks ago. First time in four years that I called up and
could not get the coins I wanted. I was very disappointed.
Would be a good question for Van at the conference."
– Paid-up subscriber Mark N.
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Re: Jew Paper Markets Separate From Physical Markets!

Post by Wade Hampton III » Thu Aug 13, 2015 12:51 am

Jim Rickards wrote...

No one in the publishing industry really knows why a book
becomes a best-seller. If they did, the business would be
easy. Instead, best-seller status is difficult to guess at,
and often takes both the publisher and author by surprise.
It’s a lot like the movie business in that respect. Big-name
films like The Lone Ranger (2013) featuring talented actors
like Johnny Depp can be flops. Small-budget films like
Sideways (2004) with Paul Giamatti can come out of nowhere
and win an Oscar. As they say in New York: Go figure. My
2011 book, Currency Wars, was in the Sideways category. My
publisher and I put a lot into the writing and editing, but
our hopes were modest. After all, it was an economics book
by a first-time author with an entire chapter on complexity
theory. Most books only sell 1,000 copies or so and then
disappear. I thought if Currency Wars could sell 10,000
copies, I would consider it a success and a job well done.
Instead, the book became a national best-seller and has sold
over 200,000 copies in multiple editions in 10 languages
around the world. The ideas in Currency Wars are the
foundation of what has become the IMPACT system that
we use in Currency Wars Alert. I’m grateful for the
surprise success, but with hindsight one can start to
see where it came from. The last currency war lasted 20
years, from 1967–1987. This one may be the same. It’s
no surprise we’re still talking about currency wars in
2015. The currency wars have been raging since 2010 and
will continue for years to come. Currency Wars was about
a subject whose time had come. The currency wars have
been raging since 2010 and will continue for years to come.
Some books are best-sellers for more obvious reasons, such
as an already famous author. They may also capture an idea
that’s in the air or the popular imagination. Yet sometimes
the idea is not one whose time has come -- it’s one whose
time has passed. Examples of this include The End of History
and the Last Man (1992), by Frank Fukuyama, and The World Is
Flat (2005), by Tom Friedman. Fukuyama is a brilliant scholar.
Friedman is a world-famous and award-winning journalist. Yet
both of their books missed the mark. Fukuyama predicted a
world that was converging on peace and democracy just as Middle
Eastern wars and terrorism were about to run rampant. Friedman
predicted a planet where telecommunications, education and the
Internet would homogenize culture and human interaction in a
kind of post-nation-state world. In fact, nationalism is on
the rise everywhere from Russia to Greece and beyond. Fukuyama
and Friedman had best-sellers based on ideas that had peaked
and whose time was soon past. The world is now more complex
and more uncertain than the optimistic formulas of those authors.
The lesson of these hits and flops is that complexity is the
best tool for analyzing densely connected dynamic systems with
continually surprising outcomes. This applies to books, movies
-- and the global economy. Many analysts fall into the trap
of looking at one market with a few relevant factors and fail
to see connections and feedback loops that can affect different
markets on opposite sides of the planet. Here’s a specific
example...
Interesting Times
Interesting Times
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The interaction of currency wars, natural gas, coal, Appalachia
and Australia may not be obvious, but it’s a good case in point.
Using complexity theory and IMPACT, we can make some sense of
those connections. Energy prices have collapsed since late 2014.
This has shown up mostly in oil, but natural gas and coal have
been affected as well since some of the resources are co-located,
and these three forms of energy can substitute for each other
to a limited extent. Of the three, coal is perhaps the most
vilified and least understood. We associate coal with dirty
energy because we all know a lump of coal can get your hands
dirty, and we’ve seen images of 19th-century smokestacks from
coal furnaces spewing black smoke into the air. We are also
constantly bombarded with support for “clean energy” in the
form of solar, wind and battery-powered cars like Tesla’s.
Superficially, coal is friendless. The reality is more complex.
Clean coal is now the norm with modern coal-burning plants that
meet strict emissions standards. We all favor innovation in
solar and wind power, but for the moment, both are heavily
subsidized by taxpayers and account for only a small fraction
of energy needs. That won’t change soon, because those
industries have not demonstrated that they are viable without
subsidies, and government deficits make the subsidies hard
to sustain. The “electric car” is really a coal-powered car
when you go back to the source. As for battery-powered cars,
where does the electricity come from to charge the batteries?
Odds are it’s a coal-powered plant. So the “electric car” is
really a coal-powered car when you go back to the source.
Coal is the biggest source of energy in the world’s second
largest economy -- China -- another situation that won’t change
for decades. Coal is a huge source of energy and will remain so
for the rest of our lives. What about the coal industry and coal
company stocks? To say they have been beaten down is like saying
the 1962 Mets had a losing season: true, but a gross understatement.
The 1962 Mets went 40-120 and finished 60½ games out of first place.
Coal stocks have been beaten down over 90%, and many companies in
the sector will go bankrupt. You get the idea. The thing about
stocks that go down 90% on fundamentals is they can’t decline much
further. They only have two places left to go -- either bankruptcy
court or a huge turnaround. Once we eliminate the coal companies
with weak balance sheets, bad management and hungry creditors, we
are left with a small group of well-run companies poised for huge
gains when the energy markets rebound -- which they inevitably do.
To this promising mix, we can add a currency wars twist. The U.S.
dollar rallied strongly from its all-time lows in August 2011 to
its interim highs in March 2015. But it has been moving sideways
since then, and with good reason. The strong dollar is killing
the U.S. economy. Growth in the first half will be the same weak
2% growth we’ve seen since 2008. Early signs for the second half
are not promising. Employment growth is stalling, real wages are
flat and corporate earnings are set to disappoint because of the
lagged effect of foreign exchange hedging of overseas revenues.
It looks like the Fed is out of bullets, because interest rates
are already at zero. It looks like the Fed is out of bullets,
because interest rates are already at zero. It’s difficult to
see how the Fed can raise rates given the weak data and the
deleterious effect of a strong dollar on U.S. growth. Yet the
Fed still has three bullets left. The first is that not raising
rates when the market expects a rate increase is psychologically
the same as a rate cut. The second is more quantitative easing,
which we may see in 2016. The third is a return to the currency
wars and a cheaper dollar. The world may not like a cheaper dollar,
because our trading partners want to cheapen their own currencies.
But the U.S. is the world’s largest economy, and the U.S. consumer
is the world’s “buyer of last resort.” If we go down, we’ll take
the rest of the world with us. This means a weaker dollar is in
the cards. A weaker dollar means unexpected profits for U.S.
companies with overseas assets and earnings, because those foreign
assets are worth more in U.S. dollars when the dollar weakens.
This is the opposite of the strong dollar effect that’s playing
out now. Currency wars are not a one-way street; they go back
and forth like a tug of war.
Tricky Dick
Tricky Dick
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Wade Hampton III
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Re: Shanghai Suprise

Post by Wade Hampton III » Sun Aug 23, 2015 5:19 pm

Chris Marchese posted...

Many precious metals investors are unaware of the details of
the Chinese physical markets. While gold deliveries occur at
major exchanges, the majority of silver taken for delivery
occurs on much smaller, domestic exchanges which aren’t
required to report deliveries. Examples are the Shanghai
White Platinum and Silver Exchange, among others. The
silver taken for delivery isn’t in commercial bar form
(1,000 oz. +/-). On the Shanghai Gold Exchange a market
participant can take delivery of either 1 kilogram
(32.15 oz.) or 15 Kilograms (482.25 oz.).

https://www.moneymetals.com/news/2015/0 ... s&AID=3818

That brings us to investment demand involving one to 100 ounce
bars and rounds throughout the rest of the world. In 2014,
physical bar investment in India alone was 66.8 million
ounces. If you add in North America, it’s over 100 million
ounces. In summary, government coin sales are a good barometer
for true investment demand worldwide. But they don’t tell
the whole story. It may seem that retail demand for government-
minted coins combined with privately minted bars and rounds
may not be making much difference. It may continue to seem
not to matter until it does. That, my friends, is the moment
when the physical market will reassert control over the global
price of silver.
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