Good morning to you all:
Many have called me on the huge number of fake tungsten bars manufactured in the usa. Most are bewildered by the shear high number of 16,000 tonnes of this stuff circulating around the globe.
I personally do not think that these bars are circulating. They are only "standing in" for the real metal. The real metal, of course, has been sold.
It has been sold as jewellry, and private demand ie. Arabs and coin hoarders etc.
The 16,000 tonnes of manufactured tungsten bars certainly puzzled me.
The usa has 8133 tonnes of physical gold to its credit. Approximately 6,000 tonnes is held at Fort Knox. Approx. 1700 tonnes of gold is held at West Point. The remainder
of gold is held at Norad in Colorado, and a tiny fraction at the Federal Bank of New York.
The Federal bank of NY however houses foreign gold and at last count, they hold approx 6,200 tonnes of foreigners gold.
The Bank of England is the world's second largest foreign depository of gold. They supposedly hold 4000 tonnes of foreign sovereign and private gold.
There is no question that England and the USA are the financial capital leaders of the Western world.
Could the "tungsten caper" include England?
If 16,000 bars were manufactured and sent, there is no doubt that the Bank of England is party to the crime along with the usa.
So lets total all the gold at these two sovereign nations depositories:
A USA: B England
Fort Knox 6000 tonnnes
West Point 1700 tonnes Foreign held gold on deposit 4000 tonnes
Norad+ NY 4133
Bank of NY (foreign holdings)
If you add all three we get around 18,000 tonnes.
However we do note that many foeign countries have asked the usa to ship back their gold.
Could this be the reason for them doing so?
A crime of this proportion is totally mind-boggling.
I leave the rest to your imagination.
Lets start with yesterday's events:
Gold (not tungsten) closed up by 10.60 to 1116.60 and a further 2.00 in the access market.
Silver closed up by 11 cents to 17.37.
The open interest on comex gold rose by 2740 contracts to 518070. The silver OI lowered fractionally
by 347 contracts to 133987.
This is, of course, as of Thursday. Remember that on Thursday, we had a terrible day and gold fell by
10.00 in the regular market and another 4.00 in the access market.
So its seems that the stronger hands in gold got stronger, the commercials supplied the paper and buried themselves.
This will explain Friday's trading. It looks like the intermediate bankers are now starting to sweat and they too are vacating
the gold premise as they know and are fully aware that a foreign central authority is the ultimate purchaser of comex gold, and LBMA gold.
Jim Sinclair has been pounding the table for the past month, that China is the major long on the comex.
As far as silver is concerned, it should go tagging along with gold but it is lagging as there is no real central authority ready to clean
out the silver at the LBMA and Comex...yet!
Yesterday, they released the COT and it is total garbage. It shows the commercials are completely abandoning both gold and silver
and the paper is being supplied by the smaller specs. This is total nonsense and these past 2 COT reports are total nonsense!
Here is the COT report for you to see for yourself:
This commentary on the COT came from Bill Murphy.
As far as I can tell, the CFTC recognize that they have a real problem on their hands especially, if word gets to them that China is going to take delivery of all the gold at their facility.
How is the CFTC going to handle the silver positions limits in December?
All I can tell you is that December is going to be a very interesting month. I am not going away so I will report daily on delivery notices.
Here are some numbers for yesterday. Nothing earth shattering, other than the dollar collapsing:
I would like to comment on the huge volumes orchestrated over at the gold comex:
On Thursday, estimated volume was 171000 contracts with 22% of the volume coming in the last 1/2 hour. or 37000
This can only be short selling as the physical market had already closed in London.
Yesterday, we got the official numbers for Thursday are reported here from John Brimelow:
First, of all, the comex cannot even come close to actual numbers. If errors are occuring, one should see overestimation on some days. I have never seen one number on the estimated
side that becomes higher than the real official number.
It should also be reported that there were few switches ie. a roll from a December contract to a Feb or April contract.
If the volume was close to 200,000 on Thursday, you can bet the farm that the volume was higher on Friday. Probably in excess of 220,000
The huge volume of contracts and the non liquidation from the strong speculators certainly frightened our cartel members
to seek higher ground.
We will have to wait until Monday to see the OI but you can be assured that it is rising again.
In the words of my number 4 son Stephen who called me yesterday:
"Dad, the cartel got stuffed today"!
Lets go to some economic news:
Yesterday, at 8:30 they released the all important trade data and it was not pretty:
We see that the usa imported more stuff than they exported and that is why the trade deficit increased. Also remember that there is a huge importing of auto parts to manufacture cars in
the usa. The cash for clunkers probably caused a huge imported bill as this was a "major" component in the stimulus bill.
The spin in the usa number is that a higher import number means the economy is expanding. Not so according to this next piece.
This is a commentary from Peter Schiff from Euro capital on this issue:
OK, next we heard from the important Michigan consumer confidence number and it surprisingly fell very badly.
This is a measure on the consumer and the consumer is 70% of the GDP. This is a very important number:
Looks like Sheila Bair of the FDIC has received final clearance for the banks to prepay 3 years of insurance against bank failures.
This is from Bix Weir:
Looks like a lot of people are not happy with Goldman Sachs:
This next story completely floors me. Obama is going to use TARP money for debt reduction.
Tarp money is money that is added to the Federal Deficit..IT IS DEBT MONEY.
The world is getting loonier by the day. Here is Adrian Douglas' commentary on this subject followed
by Bill Holter who also could not believe his eyes when it was announced:
Commentary No 2 Bill Holter
Note: On Oct l the debt is 11.92 trillion and on Oct 30. it is 11.893 trillion
Today on Nov 12.09 it is 11.991.
The Boys are cooking the books.
Here is a story on the perils of various states in the usa. There are 10 states in serious financial trouble:
I thought that we are now in the recovery stage in the economy. The Dow is rising.
The why this?
I hope you all have a grand weekend and I will report at my usual time on Monday