Stocks and Precious Metals Charts – Quiet Comex Option Expiration – Bitcoin, the Mania

The rebound for gold and silver off the lows associated with the recent Non-Farm Payrolls and FOMC continued with gold taking and holding 1280 and silver putting a stick in the ground above 16.50. I lightened up on a largish short term position I had put on at the time. I did circle these instances of short term lows on the chart as you may recall.
As noted with the publication of the new Comex options calendars yesterday, today was an options expiration for precious metals.
February is the new active month for gold contracts. March is the next active contract for silver.
Although it still matters for pricing, the Comex listed warehouse complex is starting to resemble a museum. Very little gold flows in or out of its approved warehouses, excepting for those in Hong Kong which is by far their largest source of physical gold movement.
Silver is a bit different, because CNT is an active wholesaler of physical silver for the Mint among others, and it uses the Comex to warehouse its inventory flows. But I just don’t see the shortage of physical silver in the same light as gold. It is easy to see that JPM is sitting on a massive hoard which is interesting.
Gold is a funny market now. In some ways it reminds me of a ponzi scheme in which a relatively small amount of free float physical gold is being leveraged over a very large and growing number of commitments.

This post was published at Jesses Crossroads Cafe on 26 DECEMBER 2017.


Russia and China Lay Economic Foundation Based on Golden Rule

One of the many themes we support at The Daily Coin is the constant progress happening across the emerging markets, especially the nations involved the Eastern economic alliances like BRICS, BRI, SCO, EAEU and the like. These nations under the direction of China or Russia or a combination are laying the groundwork to be the driving force of the 21st Century and beyond.
We also continually report on gold moving from Western vaults to all points East. Most recently we discussed Kazakhstan and the importance of this nation both from a geographical position as well as natural resources like gold, rare earths and a wide variety of other elements within the borders of this growing nation.
Gold always has our attention as the rules/laws surrounding gold have not changed. While most people, especially in the West, have forgotten these rules that does not mean they have changed or been overturned.
One law that has stood the test of time is the golden rule – he who has the gold makes the rules. We also like the fact that JPMorgan, the man not the bank, stated in a congressional hearing that ‘gold is money and everything else is credit’. These two rules/laws working in conjunction with one another make for a formidable alliance. When you have natural rules/laws working together and nations begin forming alliances using these rules/laws as a foundation the rest of the world should take notice, but alias the Western world is more focused on ‘russia did it’ than what Russia is actually doing.

This post was published at GoldSeek on Monday, 25 December 2017.


SWOT Analysis: Is Gold Set to Rise in 2018?

Strengths
The best performing precious metal for the week was palladium, but it clocked in with a price decline of 1.41 percent. In an interview with Sharps Pixley’s Lawrie Williams, precious metals specialist Ted Butler said his analysis shows that, for at least the past nine months or longer, Goldman Sachs and JPMorgan Chase are taking 80 percent of all COMEX physical deliveries of gold and silver. Butler believes that someone would only take delivery if you thought the price was going to go up in value. A Shariah-compliant gold ETF targeting Malaysian institutional investors will be made available by Affin Hwang Asset Management. The ETF was listed on the Kuala Lumpur stock exchange on Wednesday. Traders are still reluctant to bet against gold even with impending tax cuts and rate hikes, thought to be negative for the yellow metal. Bearish positions on bullion futures and options were at a five-year low last week. Weaknesses
The worst performing precious metal for the week was platinum, down 5.53 percent. Traders surveyed were overwhelmingly bearish ahead of next week’s Federal Reserve rate hike expectation. The world’s second biggest market for gold, India, reported a third consecutive month of decreased imports. Additionally, Australia’s Perth Mint reported gold sales of 23,901 ounces last month, about half of the prior month’s volume

This post was published at GoldSeek on 11 December 2017.


Banks Issue Last Minute Warning About Risks Of Bitcoin Futures, Ask Regulator For Review

As we countdown to the launch of bitcoin futures trading on the CBOE (10 December) and CME (18 December), the big banks – via the Futures Industry Association – have suddenly got cold feet about the risks. We don’t blame them, somebody’s going to get hurt, the only question is who. The banks are worried it could be them. The FIA’s ‘primary’ members include all of the usual suspects like JPM, Goldman, Citi, Bank of America, Morgan Stanley, etc. The risk they are most concerned about relates to clearing houses which, ultimately, they stand behind. The problem, of course, boils down to Bitcoin’s volatility, something we flagged after the CME announced circuit breakers early last month.
Having taken a gamble on bitcoin futures, which are set to begin trading by the end of the year, the CME is now seeking to avoid the consequences of what has emerged as both the cryptocurrency’s best and worst selling point: its unprecedented volatility… While the CME already uses daily vol limits on most other markets, including crude, gold and market futures, to temporarily halt trading when price swings get out of control, the CME has never before dealt with something like bitcoin
In June, Bloomberg showed how Bitcoin’s 30-day volatility had risen to 100%, which was comparable (at the time) with one of the most volatile financial instruments they (and we) could probably think of – a three-times levered ETF in junior gold miners.

This post was published at Zero Hedge on Dec 7, 2017.


Valuing Bitcoin Using Metcalfe’s Law

Just over a month a go we discussed Frank Homes, CEO of US Global Investors, who had returned from the LBMA/LPPM Precious Metals conference in Barcelona after giving the key note address on Day 2, ‘Quant Investing: From Gold to Cryptocurrencies.’ Homes’s presentation was voted the best – no doubt helped by the topical subject matter – and he was the recipient of an ounce of gold.
Seeing a role for both gold and cryptocurrencies in portfolios, he aimed a couple of blows at recent Bitcoin detractors, including you know who from JPM. As we noted at the time, however, it was Homes’s observations on Metcalfe’s law, i.e. the economics of network effects, which we particularly enjoyed.
This was his take on the surge in the price of Bitcoin…
‘Metcalfe’s law states that the bigger the network of users, the greater that network’s value becomes. Robert Metcalfe, distinguished electrical engineer, was speaking specifically about Ethernet, but it also applies to cryptos. Bitcoin might look like a bubble on a simple price chart, but when we place it on a logarithmic scale, we see that a peak has not been reached yet.

This post was published at Zero Hedge on Nov 28, 2017.


EXAMINING SILVER MANIPULATION: What Some Analysts Miss

One of the major topics discussed in the precious metals community is the manipulation of the gold and silver prices by the large bullion banks. Many precious metals analysts point to the massive commercial short positions held by JP Morgan and Scotiabank as the root cause for the low silver price. While I agree that the bullion banks’ massive short contracts are controlling the silver price to a certain degree, there’s another factor that is overlooked by the majority of precious metals analysts.
According to Ed Steers’ recent article titled, JPMorgan’s Silver Short Position Now At 195 Million Ounces, he stated the following:
For the current reporting week, the Big 4 are short 148 days of world silver production-and the ‘5 through 8’ large traders are short an additional 62 days of world silver production-for a total of 210 days, which is seven months of world silver production, or about 510.3 million troy ounces of paper silver held short by the Big 8. [In the COT Report last week, the Big 8 were short 203 days of world silver production.]

This post was published at SRSrocco Report on NOVEMBER 25, 2017.