• Gold: 1,525.51 -3.03
  • Silver: 17.37 -0.09
  • Euro: 1.113 -0.001
  • USDX: 97.64 -0.647
  • Oil: 53.65 -1.71

The Cap of Last Resort

Well, the Cartel has erected its prototypical "CARTEL HERALD" algorithm at the standard 12:00 pm est "cap of last resort," at the current "line in the sand" of $20/oz silver, for perhaps the fourth time in the past five trading days. And what a shock, at gold's own "line in the sand" at the equally KEY ROUND NUMBER of $1,250/oz.

What more can one say?

What more can one say? Clearly, the Chinese announcement last week that it no longer intends to accumulate foreign currency reserves was a death knell for "tapering"; and shortly, PM price suppression. Today's attack - amidst utterly ZERO news other than much higher than expected jobless claims - was clearly motivated to quash this week's budding PM momentum. However, with physical supplies rapidly dwindling (what will COMEX registered inventories look like after the 12/31 delivery period ends?) and surging global demand (23% Indian premiums!), it's only a matter of time before reality overcomes manipulation.

PHYSICAL demand continues to surge

Well, another bogus NFP report is come and gone - not withstanding its obviously weak "internals," and gold and silver continue to hold well above the June lows; which they darn well should, given both metals are trading well below the marginal all-in cost of production. The COMEX "Commercials" are again covering shorts maniacally; yet again, on the verge of turning "net long" for the first time in the entire 13-year bull market. The last time their shorts were this small was the last week of June, when gold and silver bottomed, commencing on a sharp, two-month rally.

Peru miner Buenaventura reports strike at thier...

The purpose of the strike is to seek the restatement of 12 workers terminated for serious misconduct against labor law. While Buenaventura fully respects labor and union workers' rights, it has strict guidelines regarding workers who have violated the law.

Odds of a Default

It's Monday morning, and as of Friday's "first Delivery day" on the COMEX's December gold contract, options representing 1.02 million ounces of gold still remain open (standing for delivery) versus just 590,000 ounces of registered COMEX inventory. This is the first time EVER that more gold is standing for delivery than COMEX inventories; and thus, the odds of a default are larger than at any time in history.

First Delivery Friday

Yes, Friday is "first delivery day" for the biggest COMEX option delivery month of the year. There were still claims on 755,000 ounces of gold as of yesterday's close, with just 590,000 ounces of registered inventory. In other words, the longs could DEFAULT the COMEX if they just held on through Friday's half day. They won't all, of course, but some certainly will; and with just $740 million of inventory to start with, how much longer can the Cartel continue to pretend "pricing" is set on a paper exchange with no phsyical inventory? Heck, China's October import data came out today, and it was the second biggest month on record! Their imports will double this year from last year's record level; and yet, we're to believe "lower demand" is causing falling prices?

It can only end in spectacular failure

Well, another FOMC minutes publication, another Cartel attack. Clearly, the world order is being shaken to its core; as between the relentless PM price suppression and the runaway stock bubble, the Fed has created historical anomalies that can only end in spectacular failure. Today, China announced its intention to start pricing oil contracts in Yuan, while the PBOC stated it no longer wants to acquire foreign exachange reserves. Gee, I wonder what they'll do with their incoming reserves - especially as last month they had a RECORD surplus with the U.S.

Something's got to give - and soon!

As it turns out, the third quarter has seen the largest amount of negative earnings guidance in recorded history; as exemplified by the consistent warnings that the 2013 holiday spending season will be the worst since 2008-09. Janet Yellen was even more dovish in her comments this morning than last week; and each day, new "rumors" of additional Japanese and ECB QE programs are floated. The disparity between the performace of stocks and PMs since QE started a year ago is becoming historic; which is probably why COMEX registered inventories are down to a record low 587,000 ounces.

Underground Silver Revenue-Virginius Mine...

An accident at the Revenue Virginius silver-mine in Ouray County, Colorado on Sunday (7:20 a.m.) has claimed the lives of two miners while twenty were injured in an explosives accident involving carbon monoxide.

Things are about to get VERY interesting.

Well, the week is over, and not a single economic datapoint - despite government massaging - validated last week's "great" NFP payroll report (which itself was predicated on the third largest monthly decline in the Labor Participation Rate in U.S. history). Consequently, Janet Yellen called for indefinite QE (i.e., "to Infinity").