Saturday, January 2, 2010
Good morning Ladies and Gentlemen:
Happy New Year to everyone!
Gold closed the year on a positive note, climbing $3.70 to 1095.20. It rose in the access market to 1096.00 where the world marked gold's final close.
It started the year at 8 65 .00 , so gold rose by $ 2 31 . usa dollars in the year or 27 %.
In terms of Japanese Yen gold, the final 2009 price is 8120 yen per oz near its record high of 8170 yen per oz. The Aussie Gold price closed at 1249.00 Aussie dollars per oz.
The record high is 1551 A/oz set in Jan 2009.
In terms of British pounds: the final closing price is 680 British pounds/oz not far from the record high of 733. pounds per oz set a month ago. Gold in British pounds rose 14.6% for the year.
The Canadian dollar gold price finished the year at 1150.00 cdn/oz not far from the record high of 1250.00 set twice during the year, the first in January 2009 and the second in Oct.
Euro gold finished at 760 euros/oz not far from its high of 808. set last month. In Euro terms, the price of gold rose 23%
Thus the fall in gold in usa terms from 1224 to 1096.00 fared worse than other currencies.
Silver closed the day at 16.84 up 4 cents as the cartel members continue to pound away at silver.
The open interest on the gold comex reported on Thursday morning for basis Wednesday was 494149 for a rise of 2437. The pundits reported on massive long liquidation.
I just did not see it and the numbers speak for themselves.
It is becoming very difficult to interpret the data as we are getting compromised data.
As has been the case for the past two weeks, the silver OI went on a different path to gold falling by 366 contracts to 123,968.
You will note that silver's OI has remained tightly range bound between 122500 and 124000 for over a month. The silver longs are just not liquidating their positions.
The only guys who are lightening up on their positions are the silver short intermediate bankers. As far as the big banker commercial shorts JPMorgan and HSBC is concerned, you will have to
mourn for them before they give up any of their short silver contracts as the regulators are in bed with them.
The big news of GATA's law suit against the Fed is spreading. In case you missed it on Wednesday, here is the official version as sent to Ambrose Pritchard Evans of the
Ok lets go for economic news of the day (Thursday Dec 31.09)
The usa released the jobless number and the initial filings for unemployment insurance fell by 22000 to a seasonally adjusted 432000.
However continuing claims remained stubbornly high at 4.98 million, down from 5.07 million claims.
First, the official report from the BLS:
The market at first liked the results and the Dow started higher but after initial thought, it turned negative. At around 3:30 pm, it really when negative falling off a cliff with the Dow closing down by 120 points.
The market perceived that the economy was improving which sent the bond yields tumbling. At one point, the 30 year bond registered its low of 114.50 before turning north on the big Dow plummet to close at
115.33. It is still in dangerous territory below the 116.00 level. Remember that JPMorgan has huge interest rate swaps and they start to lose at 116.00. At a yield of 5.6% their losses will be immense. (price of 110.00)
As for the jobless number, I would like to point out that initial claims of 432000 in which new unfortunate souls lose their jobs is still pretty high.
If one looks at the fine print, there is a category called EUC applications or Extented Unemployment Claims. Obama by an act of Congress allowed the jobless to continue to receive benefits even though their
benefit time period expired. The number on the EUC rose to a high of 191000. These people are not on the regular jobless number.
The reporting by these guys is simply atrocious.
I would also like to report that they have finally given us the B/D plug figure for the last job number reported in early December. Hold onto your hat: 834000.
And they revised the prior two months by over 150,000 so they added a ficticious 1 million jobs and everybody believes these doorknobs.
Dave Kransler wrote a scathing attack on the reporting of the jobless number on Thursday:
You will note that the BLS has now updated the release of the Midwest purchasing managers index and revised the index lower from 60.00 to 58.7 in one day as they found that their data was faulty.
Imagine that..faulty data.The midwest is still doing OK but not as thought.
Here is the official release of the new updated ISM MidWest report:
As I pointed out to you earlier, the bonds were hit hard. Here is the report on the 10 yr bond price faltering:
(the final yield was 3.83% for a gain of 5 percentage points in yield and a drop in price of 10/32.
As I pointed out to you, the long bond fell in price from 115.80 to close at 115.33
Adrian Douglas commented on the bond situation and I would like to share this with you. It is identical to what I have been telling you:
Last week the USA government announced the removing of the debt limits to Fanny and Freddie. The debt limit before the announcement was 400 billion dollars. The amount that both of these entities
utilized was 110 billion dollars . Why then the removal of the debt limit? Why did the Government give these two entities an unlimited credit card?
Jim Willie, in his latest article revealed the answer.
Posted by Harvey Organ at 8:09 AM
Wednesday, December 30, 2009
Tonight will be the last commentary for me for the year.
I will report as usual on Saturday.
Gold closed down by $5.50 to 1091.50. Silver closed down by 31 cents to 16.78.
The gold comex OI makes very little sense. It closed down by 6300 contracts to 491712.
Even though gold was hit by 9.00 dollars yesterday, there is no real rush to liquidation.
It is my bet that the number is fabricated and that the real OI rose signifying huge short selling.
In silver, the comex OI rose by 33 contracts to 124334. It seems that the silver long's did not liquidate any of their
positions. I am confident that the longs in gold also remained resolute.
The big news of the day, is GATA suing the Fed for release of all documents showing gold trading by the Fed/Treasury
and their trading arm, the ESF:
In essence, we are stating to the court that we have tried the Freedom of Information route and we have been denied.
We are seeking clarification on all gold swaps and basically what happened to all the usa gold and who is responsible.
We seek explanation of the gold swap with Germany i.e. the 1700 tonnes that the Germans swapped with the usa in 2000.
It looks like many in the House and some in the Senate who will be very interested in this case.
OK lets go to some of the economic news of the day:
First: business in the midwest picked up nicely as Obama's stimulation money seems to be percolating throughout the economy:
Today was the final auction day for the bonds. We got 32 billion dollars of 7 yr paper auctioned off. Here are the results on that auction:
Posted by Harvey Organ at 4:49 PM