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Surge In GLD December $145 Call Volume
While it is not surprising that 9 out of the top 10 option classes in GLD are calls, what is odd is that the most actively traded call by a substantial margin are the December $145 strikes. In other words, specs are betting that gold will move $60 higher in the next three weeks. Judging by today's 4% move in silver, the less valuable cousin may have a comparable move.
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Go to Apmex.com, you'll get a better price.
The venue for price discovery will just move somewhere else, and the COMEX will lose credibility.
There a whole bunch of Asians and Arabs trying to cut a piece of the COMEX pie.
Do not underestimate the power in where the vaults are located and who controls them, the current actors in the COMEX, LBMA complex will be LOATHE to relinquish it so easily.
The venue for us little guys is ebay.
When Comex fails to deliver dependably it will lose its credibility as a pricing arena for physical.
Sorry but this make no sense to me. Why would anybody trade on comex with no correlation to physical gold or silver? If anything the comex would lose all credibility.
Exactly!
That's the whole point! JPM has shorts on Comex. Comex then reveals it will basically piss on all longs. Longs leave in disgust and sell their longs. JPM covers with style! This is why JPM is in no danger of going under. If the heat gets to hot they basically bring the system down around the longs heads to save themselves.
You presume the game is about accumulating more fiat.
What if the game is about who controls the vaults and the stuff inside it?
You don't get what I'm saying. I agree that holding the metal is important. That is why JPM will not cover if it's to costly. I'm simply trying try to point out to everyone that JPM has an out they can take at any time to free them of physical obligations. So the idea that JPM will be brought down by this is silly! JPM will take their escape hatch and bury the longs in paper fiat so they don't have to come up with the metals in the case of a shortage. This in the short term nukes the pricing structure. Now sure a new pricing structure will come in but remember JPM is already free and clear on their obligations long before that happens.
I'm all for people being in physical, because it brings about JPM having to pop the escape pod. But JPM will survive this no matter what the silver price does. I like Max Keiser on a lot of things, and it's catchy but this cannot break JPM because of the paper escape hatch built into the Comex.
JPM can only do that trick once and they burn their capability to play forever.
I agree that JPM cant be broken by silver, actually it cant be broken, period.
JPM is just to interconnected, should JPM fail, EVERYTHING goes to shit.
But i dont see how the bullion banks will willingly let the "price discovery (lol)" mechanism leave for other venues, which is now centered around NY and London.
The Chinese are ITCHING to establish their equivalent of the bullion complex centered in Shanghai, I'd bet the western banking estab would never allow that - well not till they have subverted the Chinese institutions too.
That subversion may take awhile seeing how the Chinese banks are essentially govt proxies.
The game is about where the Gold, maybe Silver is as these are the 2 objective measures of value thats so ingrained into the human psyche, that despite our education we still look to the PMs when its clear fiat is shenanigan central.
Either they fail, or the United States fails. They are going to have to pick.
If one fails so goes the other, they are connected at the hip. This is the beauty of it all.
We already picked.
Have to agree with you Robo, they are not going anywhere. These guys are not dumb and their are plenty of loopholes for them to use, not to mention the nigh unto unassailable position they hold in Gov and the Fed Reserve.
I expect JPM to outlive the US gov.
Screw JPM,
Take the ETF's down.Only traders will then use it.
Get your Barter stash, and then start buying minimum 100oz bars.(least expensive way to own it,if your not already)
Want to take the supply out of the system fast?, that's the way to do it.
When does the price of anything go thru the roof, when Demand exceeds supply.
Yeah just like the Soviet Union was TBTF too.
RobotTrader, my reply to you went to the wrong place.....look at more recent posts!!
Robotasswipe, are you capable of doing ANYTHING else here on ZeroHedge except posting flaming, purposely antagonistic, driveby comments, always with implicit support for the financial status-quo?
There is a word for what you consistently do here: TROLLING.
They are too big to fail because the banks ARE the government in this fascist political system. Yes JPM is backstopped by the FED and the USG. But what you seem to be missing is that the USG itself is bankrupt. It is the most bankrupt government not only in the world, but in the history of the world. Add in unfunded liabilities and the US debt is at 850% of GDP. GDP itself is a grossly nebulous statistic which counts ALL "economic" activity ("profits" from companies like Ratheon or Boeing which are actually a result of wealth-redistribution from the private, wealth-creating sector to the parasitic, wealth-destroying economy). In other words, GDP counts all economic activity, whether it is wealth-destructive government spending or wealth-producing private sector activity. It does not distinguish between productive and consumptive economic activity and so double counts.
JPM will fail because the USG and the FED will fail. You are witnessing the collapse of the largest military empire in world history, the collapse of dollar hegemony, the fall of the west and the rise of the east. This is all a result of consuming more than you produce - the trade deficit and the fundamental insolveny of the american middle class, US cities, counties, municipalities, states, corporations, and of course, the USG are the fundamental indicators that this is so. There is nothing new here, every empire in history has ended this way. What makes you think that history doesn't rhyme?
Let me predict the typical responses you will get from the lemminglike, paper-loving, establishment-worshipping naysayers:
"It can't happen here!"
"USA #1! USA #1! USA #1!"
"Our government has everything well under control."
"The dollar is forever!"
"We will always be the world's leading economy, because we have the world's strongest military."
"We are AMERICANS, and we can overcome anything!"
"Don't bother me with all your pessimistic doomsaying."
"You're just paranoid."
"What does any of that have to do with American Idol?"
Yes, these people are indoctrinated religious fanatics. And this is what they worship.
http://en.wikipedia.org/wiki/Pledge_of_Allegiance
Notice the nazi salute and WHO wrote the pledge. State-worship has been the primary religion of America for over a century now and trust in fiat is just one of the rituals of the religion. I always chuckle at the "in god we trust" on the $ bill, because I know who their god is. The pyramid too... shouldn't it be turned upside-down? It would be more fitting.
These paperbugs are the good sheep, herded since they were five years old in the ways of the faith and they will never jump the fence before they are sheared. Baaaaaaaaaaaa!
But on another note, Tyler, we need a LIKE button besides the JUNK button! If you turned your site into facebook, I wouldn't be logged on to facebook all the time!
All true, totally true.
This is a good idea! And I would go one step further, and make it so that the name of anyone who junks a post is listed as having done so. Let us see who the cowards are who consistently junk the most brutally truthful and no-holds-barred posts as well!
Sometimes, posts get junked because they're:
Disengenuous,
Wrong,
Hopelessly Decepticratic or Republicon, i.e., partisan,
All of the above.
Check your premises.
Stycho, I wasn't trying to imply that ALL junkings here are unjustified --- just the opposite, in fact. But I have noticed a trend over the last couple of months of many honest, sincere, brutally truthful anti-establishment posts being multiply junked for no apparent reason, a phenomenon that I had NOT noticed much, if at all, in the past. I think some former trolls on this site are still lurking here, and feebly trying to discredit the more bold and hard-hitting posters here by junking them repeatedly. Pathetic, really, but still annoying, like a mosquito that just won't be brushed away.
Don't think Drupal has a module for this theme that can do that. Good idea though.
Utilities' Solar Spending to Double Each Year in U.S. to 2015, GTM Says 30 November 2010, by Ben Sills (Bloomberg) http://www.bloomberg.com/news/2010-11-30/utilities-solar-spending-to-double-each-year-in-u-s-to-2015-gtm-says.html
France Must Triple Tax to Pay EDF's Solar Costs, Watchdog Says 30 November 2010, by Tara Patel (Bloomberg) http://www.bloomberg.com/news/2010-11-30/france-must-triple-tax-to-pay-edf-s-solar-costs-watchdog-says.html
"... silver, the less valuable cousin may have a comparable move." Yeah, baby, yeah! http://www.youtube.com/watch?v=J2HBdRCroks
Just have to find out how much silver they need for them solarz?
France tripling taxes for subsidized solar?
And the US is doubling spending to go down the same cul-de-sac?
Why do our politicians try to be like Europe, again?
NOTHING IS COMING FOLKS. Got it? Good.
Double-Dippers were DEAD STINKING WRONG!
Why would Warren Buffett put his credability on the line thanking the Government for TARP if it didn't work.
Peter Schiff was wrong 2012
http://www.truthISliberty.us
Ron Paul was DEAD STINKING WRONG 2012
http://www.youtube.com/watch?v=8h8NlNvlgnw
HarryWanger post under your original name!
You should go to the Yahoo Finance Forums with your infantile understanding of economics.
How's the work coming along at The Company? They ought to give you a raise for that kind of sound analysis.
LMAO.
You Stupid Boy! http://tinyurl.com/ydxab4g
Buffet and creditability do not belong in the same sentence.
au contraire, Jimi: just need to have the secret decoder ring to figure out how he's talking his book ;-)
Example: WB is all in for the huge "estate" tax. Why? He comes in and slurps up quite fundamentally successful going concerns (private) that want to cash out in an efficient way. Local example is Jordan's Furniture, where the brothers wanted to transition:
http://www.jordans.com/
But wait, there's more. In Sept. '08 he came along to bend GS, GE, CEG, others over the table to have his way with them. Made some offers that could not be refused (like GE not being able to make payroll, CEG (enron wannabee division) bk overnight).
And yes, his Snowball reputation isn't the whole picture.
- Ned
What "credibility?"
grrr... i recognize that avatar and its bloviation. i disagree with you babybop.
hello everyone else. this is my first post on zh.
Your employer has no allegiance to you Toastshit. Expect in the end that your children will hate you when they find out what you did to them indirectly.
I forget where it was, but I read an article over the weekend about a South African gold mining company that was closed because the previous owners had gone bankrupt and the miners were now out of work.
This strikes me as somewhat strange, but there are several possible reasons.
a) There really is not much demand for physical gold since hardly anyone holds it in their home safe. It is held by the banks. In this world, paper gold is much preferred to physical gold because it is only a gambling mechanism and not really a store of welath.
b) The old owners overpaid for the mine and lost it to the bank.
c) The old owners hedged against the rise in gold prices and got margin called (alla SemGroup with oil), running out of cash.
Still it seems odd and I do not know the entire story.
Why do we need miners when we have an infinite supply of paper gold?
d) Possibility that the old owners had trouble securing their electricity needs?(Common in SA mines).
e) Shorts raiding their share price? (hurts the juniors a lot).
No, it's because known reserves in Africa are now at well past 1-3 miles undergound, and they are basically MINED out.
at this point Trav comes in to go nutto on "peak gold". - Ned
Ah, yes. Trav "The Peak" Man. That should expand the comment section quite a bit.
The Comex May Have A Problem... 29 November 2010, by Dave in Denver (The Golden Truth) http://truthingold.blogspot.com/2010/11/comex-may-have-problem.html
Pan American CEO - End Users Having Trouble Getting Silver 30 November 2010, by Eric King (King World News) http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/30_P...
What's that saying about Sherlock and his excrement?
http://www.cnbc.com/id/40132000
nice slow stealth takedown of the metals little bit by little bit currently underway that just happens to coincide with the DJIA for some reason (read - fraud) recovering all loses for the day....stupid
We are happy to help fellow ZH'ers looking to flip fiat paper.
We'll contribute 1/4% of sales to ZH's to ZH, in tribute for the great work Tyler and Team does for us here.
Visit or email us.
i miss Johnny Bravo :(
He was found hanging in his dorm room some time ago, I'm afraid.
But not because of depression due to his terrible calls. It was auto-erotic asphyxiation.
He's still around, he just junked you.
yeah! stealth junk mode. love it. comn JB, reveal yourself!
See toathis above.
Au to $0.02
Ag to $0.01
LOL...
How DARE you even attribute positive values to gold and silver!
Gold to -$12,402!
Silver to -$659!
I have minimum price targets of ~8k for gold and ~400 for siver (based on inflation adjusted 1980 highs for the metals when using realistic inflation statistics from John Williams at shadowstats). My larger price targets are from FOFOA.
I've never seen the very specific targets you mention (not that I think they are too high!). How do you arrive at them?
Sorry, DD --- I was being facetious in that post; perhaps you did not notice the negative signs before the dollar figures I quoted.
Actually, I really don't try to predict any particular dollar figures for the prices of gold and silver in the future, as they will be so dependant on just how much devaluation the dollar experiences as we go forward. If we get into hyperinflation, all bets on (nominal) prices are off. I like to think more in terms of values --- just how much more VALUABLE will gold and/or silver be in the future, or at their peak, relative to today? It will drive you less crazy to just remove the continually-shrinking dollar from the equation altogether.
akak,
I never use dollar prices without actually meaning PURCHASING POWER. A pain in the ass to caveat that every time though haha. So when I say ~8k gold I mean a rise in true purchasing power of approximately 6 x from here as a minimum increase in purchasing power. I am firmly convinced that the $ will hyperinflate (along with the GBP, the Yen, and perhaps the Euro). So $ prices of gold are ultimately irrelevant since the $ is a ruler made out of silly putty.
I think many gold bulls make the mistake of seeing gold and silver merely as tools to preserve purchasing power. Not so. They are the inverse of paper currencies. Commodities will preserve purchasing power, but monetary metals will multiply it for simple reasons of supply and demand. To see this is easy...
Demand exists as an external constant. If paper "money" is destroyed, it does not change the supply/demand fundamentals for wood, or steel, or food, or other base commodities. These commodities will increase in nominal ($ price) terms merely as a function of dollar devaluation. But destruction of paper money DOEs change the supply/demand fundamentals of MONETARY alternatives since demand flows INTO competing monetary instruments.
An analogy for illustration: A small country satisfies a large part of their caloric intake through potatoes. All potatoes are destroyed by a fungus and cease to exist. The demand for calories is a real, external constant that does not go away just because potatoes are gone (people need to eat!). So the demand that previously was satisfied by supply of potatoes does not flow into shovels, or cars, or steel, or wood... It flows specifically into alternative FOODS. Does it flow into rasberries? Or into peas? Perhaps a little. But primarily it will flow into the best substitute for potatoes - other starchy potato-like foods that are best able to fill the role formerly occupied by potatoes. The point is that the destruction of potatoes does not affect the supply/demand fundamentals for non-food items, but DOES radically change the demand fundamentals for potato alternatives.
Real world application: When paper money fails to provide one of the key functions of money (preservation of wealth), demand that formerly was held by paper money for that function will flow into money alternatives, radically changing the demand side of the equation for alternative monies. Commodities like steel and wood then, will increase in nominal value as a function of dollar destruction, but will not actually multiply in value since the underlying supply/demand fundamentals will not radically change. Gold/Silver will multiply in value since the demand side of the equation DOEs change (the supply is a known constant).
So to sum up, all my price predictions in $ terms are quoted in today's dollar purchasing power. The $ will not be eventually not be used as a tool for economic calculation of any kind, just as the weimar mark is not. I am not really interested in $ price per se, but rather in purchasing power projections. So I am facinated by all purchasing power projections and was curious as to why you mentioned those specific numbers. As I said, my minimum purchasing power predictions are ~8k gold and ~400 silver simply based on the history of the 1980s bull cycle (this time it will be much worse/better for a number of reasons).
And no lol I didn't notice the - signs!
I miss him too! I hope he shows up again at gold 5k so I can ask him "is it a bubble yet?".
The trolls are great fun since responding to them is always an entertaining intellectual excercise.
But seriously, after the education you have given JB, he probably has changed his handle to Turd Ferg 2 and is posting bullish comments on gold. Just to ashamed to admit his former identity.
I miss Janet Reno.
I heard he is a professional wrestler now.
Gold
Diamond Top?
http://99ercharts.blogspot.com/2010/11/gold_4260.html
http://www.zerohedge.com/forum/99er-charts
Too bad this is too little too late:
http://www.charlotteconservative.com/index.php/2010/11/ron-paul-to-be-appointed-committee-chair-overseeing-federal-reserve/
RobotTrader, I think the way the TBTF banks are going to be handled is temporary "nationalization" by the gov't, during which they'll shunt the toxic debt into a separate holding company that will declare bankrupcy after the TBTF are privatized again. Congress will make sure the necessary laws are passed to make it happen and keep everyone happy. The end result, a new and improved JPM. But I"m not a wizard on these things and I could really wrong...if so, please enlighten me....
Rather than trading my Dec Silver Futures I decided to take delivery. I had some mini's and full contracts. Today was the first notice date. I was immediately given notice on delivery of the mini's. I'm curious how long until I get a notice on the full contracts.
The chart on silver looks awfully bullish here. I was thinking we could see a short squeeze into year end. But getting a notice first day may put the kibosh on the squeeze unfortunately.
Hey Guys,
What's you favorite/trusted place to buy gold? I heard some good and bad ones about Kitco.
I know most of you prefer to posses it physically, rather than buying paper gold, or keeping it in custody of some firm. So I won't ask that question.
But I read in comments some days back, that the wise people prefer bullions over coins, what's the logic behind it? I mean, if the prices are comparable, and the purity is comparable, aren't coins easier to manage? (say, from TSA, while travelling by air?)