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Erm "Hello Scotia Mocatta, It's JPMorgan...
- Yes, us
- Yes.... Again...
- Erm...We Need More Gold"

23 August


8 AUG (although a run around the garden to get there)
- then off out...the back door.... pronto


7th Aug


And I think at the end of the call Jamie probably said
(In his best Arnie the terminator voice)

"I'll be back"

Result of the f/flag & fake (Boston Style)
- chem wep attack ( on the day the inspectors arrived....:o)

Charlie Kaye ✔ @CharlieKayeCBS
BREAKING. @CBSNews has learned
- that the Pentagon is making the initial preparations for.....
- a Cruise missile attack on Syrian government forces

(They really do just keep running - the same old tired rinse & repeats - from the same old tired ....rinse & repeat playbook)

From Indian leases to negative GOFOs, from Chinese physical demand to Western bank paper gold deleveraging, and from practical mining cost floors to the ongoing playing out of the grandest experiment of monetary policy in history;
- there are a plethora of drivers for the price of the precious metal.
- But, for now,
- the only thing that counts is...... the 100-day moving average
- as gold prints its first positive closing breakout of 2013.

And - "The Results Are In"

Back on July 17, the New York Fed,
- which as always operates based on the decisions and inputs of its Primary Dealer superiors :o),
- asked the Dealer community....... for their thoughts on the Taper,
- specifically
- when and how much.

The survey has come back and the PD community has spoken.
- The answer:

Taper is announced, and begins, September
- with the first reduction in monthly purchases of $15 billion
($10Bn cut in TSY purchases, $5BN cut in MBS),
- eventually tapering to nothing in June 2014
(when the Dealers believe QE formally ends).

The FEDy will probably - re-run the survey
- on the basis that....
- the result.... obviously shows.....
- The primary dealers -.....didn't understand "The Question"

When looking at the 2005 and 2008 Gold rebound from lows,
- each resulted in a 70-72% rally,
- but that was just a mid-point in the overall trend before the next major correction.

The longer term trend shows the 2005 rally ended in 2008
- with a total move of +250%.
When looking at the full breadth of gold’s rally from the 2008 low to the 2011 peak at $1900,
- we see a similar +260% move.

The extended chart below shows....... what we may see going forward and,
- if... past is prologue, then.....sometime in 2016 gold could reach roughly $3500/oz.

And - who..... "is having to"....pick up all the T-Bonds issued
- the schart shows the ratio of Fedy purchases
-VS-
- Johnny Foreigners net annual purchases

(Just to highlight things - the horizontal red dotted line - indicates a 1 : 1 ratio)


Johnny Foreigner - (predominantly Japan & China) - seems to be ........losing faith
- in the "safety" of the dollar...... & US Gov IOU's

What is the - price of gold ??
- well - the paper comex price is $1397

http://bullmarketthinking.com/indian-gold-dealer-gold-is-now-trading-at-1800oz-small-factories-and-workshops-are-shutting-down/

The price of......Real physical gold is...??

Bull Market Thinking's Tekoa Da Silva today interviews a gold dealer in India about the Indian government's war on gold.
- The dealer reports that government restrictions on gold imports
- have driven the gold price.. in India

- up to..... $1,800 per ounce

And what of - the - Real Physical Price of gold - in asia - back in Jun 13 ??

And
- If the State Bank Of Vietnam is forcing the nations banks....to close their punters gold accounts......then why
- do the banks need to... buy gold back....to be able - to give it back to the punters...
- so that they can meet the deadline to close off the accounts

..................................................................................................................

Most banks have closed their gold accounts to meet the State Bank of Vietnam's deadline of June 30 this year.

The SBV said that only five or six banks still had outstanding gold accounts to date,
- adding that the banks would be pushed and even ‘forced'
- to close all gold accounts ...by the end of this month... to meet the deadline.

http://www.vir.com.vn/news/en/top-news/most-banks-gold-accounts-to-close.html

Year to date, the State Bank of Vietnam
- has organised 30 auctions for 848,000 gold taels, of which it has sold 761,600 taels or 27.3 tonnes

Industry insiders said.......
- that most.... of the gold.... had been ....bought.... by banks
- to close all their accounts before the June 30 deadline.

Moral of the Tale

As the banks - have had to BUY gold from it's central bank auction - to close customer - gold accounts
- IF - you had put gold into "the banks" - gold accounts
- and wanted it....back
- "the banks" at that time - wouldn't have had it....to give back to you

Perhaps a lesson in Banking - and Bank IOU's ?

......................................................................................................................

And the - premium "the banks" had to pay above - comex paper price - to get hold of the "physical" - to pay back....and close punters gold accouts ??

Today (Jube), the premium was close to 5.5 million dong which is the equivalent of a very high premium of ......
- $217 per ounce over spot.

http://www.zerohedge.com/contributed/2013-06-17/gold-demand-extraordinary-vietnam-%E2%80%93-paying-217-premium-over-spot

Remember - when the gold price tanked in April
(real reason a bazillion paper ounces were dumped on the market)
- but the talking heads alleged reason.....Cypus may be ...forced...
- to sell/lease their measley 13 Tonnes

-VS -

When news came out last week that India may lease the 200 tonness of Gold that was purchased from the IMF some 4 years ago.
(http://www.zerohedge.com/news/2013-08-21/foundering-india-about-flood-gold-market-200-tons-leased-gold)

The gold market price...... didn't even flinch

Moral of the tale

Talking heads - say....what they are told to say !!

Sahara

You mentioned the emf from being sat on...... 2 mobiles and by a wireless router
- here is the..... live blood effect .....analysis
- of just - being a foot away from....only one.... "smart meter"
(3 mins)

A must watch and I would be very grateful for any suggestions for gold and silver stocks with good management.

Many thanks.

mabel

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2013/8/25_Eric_Sprott.html

I could be wrong, but that all important meeting last week between Obama, the banks etc was probably a meeting to make sure all the i's were dotted and the t's were crossed before going to war. I mean starting a war wouldn't be beneficial to all who are short PM's now would it???????

We are getting closer to the nominal price levels for metals.

Mabl I know Sprot is in the Precious metals business - but I think he is honest in his opinions and is a great source of a wealth of information.

The big picture of - events - in the Middle East...explained

If the very detailed content of this short report - was made into a documentary
- literally... everybody

Would know - what the whole manipulated unrest in the middle east....is all about.

In a nutshell it's.... ALL about...Iran

It has easily accessible.. gas supplies.. (equivalent to that of Russia)

It has... oil.. that could.. totally.. replace saudi arabia

It does not allow - foreign "ownersip"

It is negotiating deals - re pipelines....to feed it all
.....vitually ....EVERYWHERE...via pipeline deals

And.....everybody...wants it.


AND IT WON'T - BE PAID FOR...IN DOLLARS

http://www.ifri.org/files/Energie/Tomberg.pdf


For good measure....add in that in June

Russia
- inked a sizable oil deal .....with China,
- signing a $270 billion deal to supply oil to fossil fuel thirsty China
- for 25 years.

AND IT WON'T BE PAID FOR.....IN DOLLARS

http://www.forbes.com/sites/kenrapoza/2013/06/22/russia-inks-big-china-oil-deal/


So coupled together
- the western... oil cartel...gets cut out
- the saudi influence... diminishes
- so the petro dollar... 3 card monty collapses
- the dollar (energy paid for in dollars based).. reserve currency status ??
- & the whole FEDy/Bankster grip on the world....

- goes...very...very...awry

And - as - General Wesley Clark - pointed out - he saw...the memo
- of current... planned ...middle east events
- in the pentagoon
- over....10 YEARS ago

So if everybody also - read BHG's Major General Smedley Butlers book
- War Is a Racket
(as in....racketeering)

Everybody - would see, and have....the whole....big nasty picture
(& how many millions.... have/will die....as a result)

Interesting chart Graph 8
(About 2/3rds down the document - sorry no page No's and can't copy it)

http://www.occ.gov/topics/capital-markets/financial-markets/trading/derivatives/dq113.pdf

An interesting possible phenomenon sticks out...
- since the 2008 global meltdown .....in the 1st graph (specifically labelled) - gold derivatives....... have increased
- about.... 40%
(presumably they were put on in order to control gold price)

The second graph described obscurely described as "precious metals". ....& I presume predominantly .......Silver,
- derviatives have increased
- 300%
(presumably put on and sustantially increased ....in order to control the silver price !)

- "IF so" - then ... Silver derivatives are EXPLODING IN VOLUME!
- if not - (ie not "predominantly silver")
- then silver ..& other.. precious metals ......are EXPLODING IN VOLUME!

Again - silver is possibly....THE achilles heel

John Embry - re the big-guns of the BIS itself being rolled out into play.

- “Gold had a wonderful day on Friday and was challenging $1,400.
- In any normal market, based on everything that has transpired up to this point,
- gold would have blasted through $1,400 today and been off to the races.
- But the reality is
- that ..the BIS... intervened - and capped the price.
This doesn’t surprise me because I think the BIS has been involved in a lot of the strange movements in the gold price over the past year.

But this is just delaying the inevitable.


“As you know the BIS is the ‘central bank of central banks.’
- The BIS...... has a massive gold trading operation
- and I’ve always believed they were very active in the gold market,
- but this is just one of those times where I’m sure they were greatly concerned about the tremendous upside action in gold, and so
- they moved to halt the advance.

But the attempt by the BIS to maintain the viability of the fiat currency system
- will ultimately fail.

Re the O'Barmy meeting with all the Dept heads.

- I strongly believe that had the 10-Year bond roared through a 3% yield, that really would have unleashed chaos in the derivatives market.
- Once there is an explosion in the derivatives markets, it becomes a cascading series of blowups and it completely destabilizes the entire financial system.

So there was clearly an intervention in bonds,
- and that has delayed the inevitable, at least in the short-term. T
- his was entirely predictable, but does it make any difference in the long-term? No.
- At some point there is going to be a collective realization that the money is being destroyed, and that interest rates are materially too low.

The bottom line here is
- that Western central planners don’t have a plan that works,
- and the longer-term ramifications of their interventions will prove to be even more disastrous.”

Meanwhile, as all of this chaos is unfolding, Western central planners are desperately trying to avoid
- the inevitable collapse that is coming.”

France, Russia and Turkey were among ........15 central banks
- who added gold to their foreign exchange reserves in July,
(IMF data showed today).

Russia expanded their gold reserves for a.... 10th straight month in July.
- Russian holdings, the seventh-largest by country, gained another 6.3 metric tons to 1,002.8 tons.
- Kazakhstan’s reserves also rose for a....... 10th straight month
to 1.1 tons to about 132 tonnes.
- Azerbaijan added 2.009 tonnes to bring its holdings to 10.023 tonnes in July.
- Turkey lifted its gold holdings by 22.5 tonnes,
the biggest increase seen among 15 central banks.
(Turkey now has the world’s 11th-largest gold reserves as its holdings rose to 464 tonnes in July from 441.5 tonnes in June. The country’s central bank last year allowed commercial banks to hold a portion of their lira reserves in gold).

France even bought 1,000 troy ounces of gold.
The Bank of France has made a few such purchases in recent months.

When mainstream commentators who regularly appear on...the sunshine blowing machines, such as CNBC, give this advice in an interview
- it must be getting bad

Famed investor Jim Rogers says,
- “This is the first time in recorded history all the banks are printing money at the same time.
- This is the first time we’ve had massive debasement,
- and it’s going to end very badly .......no matter what they say.”

Rogers, who has written books on global investing, says,
- “Banks are not going to be lending.
- Financial markets are going to go down.
- Currency markets are going to be in great turmoil.
It’s not going to be any fun.”

And if the money printing continues, Rogers says,
- “You’ve got bubble in some sectors,
- you have inflation,
- and then you have interest rates going up.
- Currency markets are in turmoil,
- and it’s a mess because printing money is artificial.

It’s never worked.”

As the economy slows down, Rogers predicts,
- “They’re going to take money wherever they can. . . .
- They’re going to take our bank accounts
- and retirement accounts.”

http://www.youtube.com/watch?feature=player_embedded&v=buDsxcFcdko
(11 mins &..... minus his customary - bow tie)

Rogers concludes by saying, “We’ve had perilous times,
- and it’s going to get worse. . . It’s coming, be worried, be careful.”

Morning all.
Gaz good to see you have survived the weekend. I hope it was a memorable one.
Squirrel, are you still in the UK or have you traveled back to the ME? If so, what is your experience right now as to what is going on there. Have you seen a change between when you left and come back?

I have 2 excellent links from Bill Holter. He is currently 1 of my favorite writers as he asks the questions and points out the flaws and the potential consequences.... all in idiot fashion speak so even I can understand it :-)

http://blog.milesfranklin.com/why-syria-why-now


http://blog.milesfranklin.com/permanent-backwardation-the-two-tier-market

The other writer is Jeff Nielson. 2 great pieces from him too.

http://www.bullionbullscanada.com/gold-commentary/26305-chinas-golden-feast-on-western-folly

http://www.bullionbullscanada.com/intl-commentary/26307-western-real-estate-bubbles-exposed