• GoldCore
    05/05/2015 - 06:56
    Gillian Tett, markets and finance commentator and an Assistant Editor and former U.S. Managing Editor of the Financial Times, wrote an important and little noticed article last week questioning...

Futures market

Marc To Market's picture

King Dollar: Not Just the Driest Towel on the Rack





Deny it.  Engage in all kinds of mental gymnastics to dismiss it if you must,  but the fact is the US dollar is rising, and not just because of negative developments abroad, but positive economic developments in the US.  

 
Tyler Durden's picture

Gold Shortage, Worst In 21st Century, Sends 1Y GOFO To Lowest Ever... And India Just Made It Worse





While we have covered the aberration that is a negative gold GOFO rate previously and in extensive detail in this post, an abridged version of what negative GOFO means comes courtesy of Deutsche Bank's recent discussion on what a successful Swiss gold referendum. To wit: "It is interesting to note that benchmark gold-dollar swap rates have recently traded negative, meaning investors are paying to borrow gold. This is unusual as gold is traditionally used as a source of collateral for cash financing.... [A] number of factors may play a role, such as excess dollar liquidity or an increased demand for collateral on the back of the global regulatory developments." In short a gold shortage at the institutional, read commercial and central bank, level. And not just a shortage but the biggest shortage in history, judging by today's latest plunge in the 1 Month GOFO which just dropped to -0.5% and , worse, 1 Year GOFO that just hit its lowest print in the 21st century, and is also about to go negative: something that has never happened before further suggesting the gold shortage could go on for a long, long time!

 
GoldCore's picture

122 Tonnes of Gold Secretly Repatriated to Netherlands





As the debate regarding whether or not Switzerland should keep the bulk of its gold reserves at home on Swiss soil reaches it's climax - the referendum takes place on Sunday - it is telling that the Dutch announced on Friday that they have just secretly repatriated 122 tonnes of their sovereign gold reserves from New York back to Amsterdam.

 
Marc To Market's picture

Every One Wants Dollars (Again)





Contrary to the death of the dollar chatter, the US currency continues to appreciate.  Here's why there is still punch left in the bowl.  

 
Tyler Durden's picture

Treasury Market Liquidity From Lehman To The October 15 Crash In A 1 Minute Video





To put the events of October 15 in context, here is a 1-minute clip courtesy of Nanex showing the daily history bond market liquidity starting with 2008 and going through November 2014.

 
GoldCore's picture

"My Helicopters Are Ready. You Will All Be Trillionaires!" - Mario Draghi, ECB





“Unconventional measures might entail the purchase of a variety of assets, one of which is sovereign bonds,” the ECB president said in Brussels yesterday in answer to a question during his quarterly testimony to lawmakers at the European Parliament. Draghi and the uber doves appear determined to ignore the failure of QE in both the U.S. and Japan.

 
Tyler Durden's picture

Paul Craig Roberts: The Global Financial System Is "A House Of Cards Resting On Corruption"





Washington’s ability to rig markets has allowed Washington to keep its economic house of cards standing. The extent of financial corruption involving collusion between the mega-banks and the financial authorities is unfathomable. The Western financial system is a house of cards resting on corruption. Can it stand forever or are there so many rotted joints that some simultaneous collection of failures overwhelms the manipulation and brings on a massive crash? Time will tell.

 
Tyler Durden's picture

"Paper Gold" And Its Effect On The Gold Price





Gold dropped to new lows of $1,130 per ounce last week. This is surprising because it doesn’t square with the fundamentals. China and India continue to exert strong demand on gold, and interest in bullion coins remains high. In other words, it doesn’t add up.

 
GoldCore's picture

Banks Rig Gold and Silver Prices? Never !!





Manipulation of markets can work effectively in the short term. However, in the long term prices will be dictated by the global supply and the global demand of 7 billion people, many in Asia who believe in gold as a store of wealth. Not to mention, sovereign central banks including the People’s Bank of China and the Russian central bank - who also believe in gold as an important monetary asset.  

 
Tyler Durden's picture

"Turn Those Machines Back On" - The Day The Bond Market Died (If Only For A Few Minutes)





while the algos would have been delighted to let October 15 slide into the collective memory made obsolete by a constantly rising market (because investors are only truly angry when the market plunges not when it surges) just as the regulators made a mockery of their fiduciary responsibilities in the aftermath of May 6, and now markets are more fragile than ever as HFTs comprise the vast majority of all trades, some appear to be complaining and even, gasp, asking questions how it is possible that the $12 trillion US Treasury market traded like an illiquid Pink Sheets pennystock, or worse, the Nikkei.Here is the WSJ with some of the complaints: “It starts moving faster and faster, and you can’t point to anything."Actually, yes you can.

 
Marc To Market's picture

Dollar Fundamentals Supportive, but Technicals are Stretched





What if global capitalism is not about to collapse?  What if the sun rises next week, and the great apocolypse called for and predicted does not materialize yet, what then for the dollar?  

 
Tyler Durden's picture

Physical Gold Shortage Worst In Over A Decade: GOFO Most Negative Since 2001





As noted over the past week there has been a massive shortage of precious metals - most notably silver which as of this moment is indefinitely unavailable at the US Mint - as a result of the tumble in the paper price, and following 8 days of sliding and negative 1 month GOFO rates, today the physical metal shortage surged, as can be seen by not only the first negative 6 month GOFO rate since last summer's much publicized gold shortage when China was gobbling up every piece of shiny yellow rock available for sale, but a 1 month GOFO of -0.1850%: the most negative it has been since 2001!

 
SurlyTrader's picture

Gold, Yen, Central Banks and the Endgame





Central Banks shorting Gold and Silver to preserve their status as Masters of the Universe.

 
Tyler Durden's picture

Because Nothing Says "Best Execution" Like Dumping $1.5 Billion In Gold Futures At 0030ET





For the 5th day in a row, "someone" has decided that 0030ET would be an appropriate time (assuming the 'seller' is an investor who prefers best execution rather than the standard non-economically-rational share-repurchaser in America) to be dumping large amounts of precious metals positions via the futures market. Tonight, with over 13,000 contracts being flushed through Gold - amounting to over $1.5 billion notional, gold prices tumbled $20 to $1151 (its lowest level since April 2010). Silver is well through $16 and back at Feb 2010 lows. The USDollar is also surging.

 
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