This page has been archived and commenting is disabled.
Commodity Smackdown In Progress
While the immediate catalyst will be heralded a weak ADP report, commodities in general have been sliding all morning. In the last few minutes (and for the third day in a row) Silver and Gold prices have slumped hard around the 8ET hour. What is somewhat odd about this smackdown is that the USD is being sold aggressively against the JPY (tested 97) and EUR (above 1.32). Oil is not smackdown-retardant and has dropped back under $91.50 for WTI. S&P futures are 6 points off overnight highs (a mere -2 from the close).
Oil and Stocks too...
But the USD is weaker?
Charts: Bloomberg
»
- 19193 reads
- Printer-friendly version
- Send to friend
- advertisements -
Damn, I have to wait until the 3rd to get my disability check before I can stack more.
the great rotation to phys everything essential! join the party b/4 cost prohibitive...
That plunging WTI should really encourage drillers to go there and drill more!
http://www.resilience.org/stories/2013-04-30/commentary-interview-with-steve-kopits
https://www.texmetals.com/us-mint-silver-eagles-allocation
TexMetals.com inventory update today
Update, 5/1/13:
Dear TexMetals Customers:
I want to provide you with a brief update on TexMetals inventory, and answer some common questions from clients over the past week or so. To begin, we have received (and will continue to receive) silver shipments this week. We have newly added to the website:
1 oz Golden State Mint Silver Bars
10 oz NTR Silver Bars
100 oz RCM Silver Bars
Texas Silver Round Monster Boxes
Canadian Silver Maple Monster Boxes
On Friday morning (May 3rd), we will release 15,000 silver american eagles at 8am CST. In a previous email, I commented that we would release silver eagles every week on Tuesday morning, but last week we offered two releases - one on Tuesday and one on Friday - because we were able to pull in stock early. Moving forward, it is likely that Friday will become the norm for the weekly release of eagles.
To answer a few questions:
Why are you not selling quantities less than 500 ozs of silver?
This is not entirely true. We are selling less than 500 ozs on certain products, namely: 1 oz GSM bars, 10 oz Kookaburra, and Kilo Koala. We anticipate offering 10 oz NTR bars and Texas Silver Rounds in smaller denominations early next week.
In general, during times of extreme shortages, any order size restriction we impose is either a function of extreme demand or logistics issues. We use several vaults throughout the US to store our metal. All US Mint and Canadian Mint products originate on the East Coast and are trucked down to Texas. Some of the private mints send product from California and Utah. One of the secrets to keeping a three-day shipping window is to reduce the transit time of inventory, and therefore we sometimes ship to clients directly from our third-party vaults rather than pulling all inventory to our central hub in Texas. However, we limit this process to orders of certain sizes. Orders involving "broken boxes" or smaller units always ship from our vault in Texas given the care required to package and count product. Under present conditions, we are often selling out of inventory faster than we can truck it down to Texas.
Last week, on Tuesday, we offered 15,000 silver eagles on our website, and they sold in 8 minutes. On Friday, we sold another 15,000 in 4 minutes. All orders sold as monster boxes. The demand is so greatly outstripping supply that we do not have the option of offering smaller quantities. It is an unfortunate by-product of current market dynamics, and we are empathetic to our longtime clients who dollar-cost-average in smaller denominations.
When will inventories return to normal?
It is difficult to speculate. As gold and silver begin trading in a narrower range, buying pressure tends to ease a bit. However, the mints are so far behind the demand curve after last month's activity, that we expect at least 6-8 weeks before inventories return to normal. This, of course, assumes no further significant movements in spot price. A strong move downward into the sub-$21 range in silver would perpetuate longer lead times and rising premiums.
When will premiums return to normal?
Premiums are a true barometer of supply and demand in the physical market. When equilibrium is skewed in one direction or another, premiums either reach a minimum baseline above cost (supply exceeds demand) or rise greatly in a type of silent auction (demand exceeds supply). We are experiencing the latter phenomenon now, and premiums will not retreat until supply and demand return to a state of equilibrium.
We appreciate our customers greatly. These messages are intended to keep all of our clients updated on the latest information. If you have questions, please do not hesitate to call or email.
Sincerely,
Jason Kaspar,
CEO, Texas Precious Metals
Fed needs to pump out $150 billion/month. Even houses in my area now sit there for weeks despite all sorts of incentives.....not to mention tons of shadow inventory not even on the market yet.
Lots of unemployed and Homeless wandering near the highways...i hope it does not progress to civil unrest here also.
I've been seeing almost daily "normal middle class-looking" people wandering around telling a tale of woe and begging for money to get a motel room or a bus ticket so they don't have to spend another night sleeping on the street. More and more often they have children with them.
Our prisons and jails are already full, so the only "answer" seems to be the rumored FEMA camps.
We've always heard gold & silver would drop if interest rates rise. Ok, they're rising, Treasury just announced floating rate treasuries coming ...dubbed "FRN" oddly enough :)
If you want to see how fucked up the precious metals market is have a look at kitcos silver and gold lease rate charts.
Sure....
Everything is normal.
Ps....fuck yous bankers
Always a great time for taking delivery.
I still see buyers lined up at the gold shops here in Asia and I still see the shops with inventory. Does this mean supply is meeting demand?
In the paper market we had supply come in a couple of weeks ago followed by a rally. Now price is heading down. Sounds pretty normal to me.
I just don't see the shortage that would drive prices higher in the physical market nor the paper market. I wonder if the PM companies sold there future production to the suckers...er, I mean the investors in the futures market....hmmmmm....
uhhh....buy on the dips.
Not suguesting violence, I am suguesting running them out of DC.
How?
Sure, we can use guillotines and bury them all in DC, NY, London, Brussels, etc.
Where does this criminal cartel come up with gold and silver to fill contracts?
http://useconomy.about.com/od/monetarypolicy/f/fed_monetizing_debt.htm
Question: How Is the Fed Monetizing Debt?
Answer: The Federal Reserve is monetizing debt anytime it buys U.S. Treasuries. The Federal government borrows from individuals, corporations and even foreign governments when it auctions Treasury bills, bonds and notes. When the Federal Reserve buys these Treasuries, it doesn't actually have to print money to buy them. It issues a credit, and puts the Treasuries on its balance sheet. Everyone treats the credit just like money, even though no actual cash is printed.
How does this monetize the debt? It turns the debt into money. It takes those Treasuries out of the open auction, which decreases the supply of Treasuries. This means the remaining Treasuries are bid up higher. Treasuries that are more valuable don't have to pay as much in yield to get buyers. A lower yield drives down interest rates on mortgages. The net effect is that it is as if the Treasuries bought by the Fed didn't exist.
But they do exist on the Fed's balance sheet. Technically, the Treasury must pay the Fed back one day. Until then, the Fed has given the Federal government more money to spend and increased the money supply. This is called monetizing the debt.
The Fed only monetizes debt in an emergency, like a recession. It helps the Treasury increase government spending to stimulate the economy without raising interest rates, which would depress the economy. When the economy improves, then the Fed can reverse the transaction, get the Treasuries off of its balance sheet, and remove the credit from the Federal government's operating budget.
Karl Marx told us what happens in the "ultimate crisis of capitalism."
... And if the economy continues getting weaker and weaker without cease:
Fed balance sheet expands without limit,
money supply expands without limit,
prices increase without limit, but always outpacing wage growth because of high unemployment,
and eventually when proles cannot afford food and necessities, there is a grand battle.
First no Ammo, now no PM's hmmmm.......
just got paid. ordering 100 more ounces of silver. fuck you, bankers.
now if i could just get delivery. my 100 from three weeks ago hasn't even showed up yet.
Free market! Lulz!
Bernanke has to print more or deflation wins.
my LCS had eagles at $29..bought the 30 ood colorized coins he had ..my stack needed a little color