PCR on the Suppression of the Price of Gold

[EJ]

Re: PCR on the Suppression of the Price of Gold

Appears that the "government gold price manipulators" decided to take the day off today.

[aaron]

Re: PCR on the Suppression of the Price of Gold

There is a huge market for paper gold. It sucks up billions of dollars that would otherwise go to actually buying and selling the real metal. In my opinion, this is true price suppression. And, the futures market can be manipulated with ease... you could see this in the silver rise and crash.

How high would the price of gold bullion be if you actually had to buy the metal in order to invest in it?

Volcker said keeping the price of gold down is important to the government. Why not take their word on it?

[charliebrown]

Re: PCR on the Suppression of the Price of Gold

Do you have any estimates on when the "easy" frack oil runs out? It seems from charting that roughly $95 a barrel oil is enough to provide a good flow rate from U.S. sources. I assume in x number of years that the low hanging frac fruit will be gone and it will take $100, $110, $120 ... oil to provide the necessary flow rate.
Will the price gently rise up or will we have a more or less fast ramp to a new plateau?

If one wanted to "start" something in the mid-east, now might be about the best time to do it.

As for the paper gold blah blah blah guys, I just checked and I can still buy physical for less the $30 over spot. I don't know what price a central bank pays
when buying in tons. Today's run up I assume are people in Cypress, looking for a safe haven for their wealth. It's a sad day when the gvt
decides your savings are theirs. I assume the Greeks, then the Italians are looking over their shoulders, wondering when their insured bank deposits will be
taken.

[shiny!]

Re: PCR on the Suppression of the Price of Gold

Do you have any estimates on when the "easy" frack oil runs out? It seems from charting that roughly $95 a barrel oil is enough to provide a good flow rate from U.S. sources. I assume in x number of years that the low hanging frac fruit will be gone and it will take $100, $110, $120 ... oil to provide the necessary flow rate.
Will the price gently rise up or will we have a more or less fast ramp to a new plateau?

If one wanted to "start" something in the mid-east, now might be about the best time to do it.

As for the paper gold blah blah blah guys, I just checked and I can still buy physical for less the $30 over spot. I don't know what price a central bank pays
when buying in tons. Today's run up I assume are people in Cypress, looking for a safe haven for their wealth. It's a sad day when the gvt
decides your savings are theirs. I assume the Greeks, then the Italians are looking over their shoulders, wondering when their insured bank deposits will be
taken.

I'm already wondering when my insured deposits will be taken.

[lektrode]

Re: PCR on the Suppression of the Price of Gold

I'm already wondering when my insured deposits will be taken.

they ARE being taken, ms shiny!
with every passing day of ZIRP, our savings are being S T O L E N right out of our bank accts.

[don]

Re: PCR on the Suppression of the Price of Gold

they ARE being taken, ms shiny!
with every passing day of ZIRP, our savings are being S T O L E N right out of our bank accts.

+1

[Milton Kuo]

Re: PCR on the Suppression of the Price of Gold

they ARE being taken, ms shiny!
with every passing day of ZIRP, our savings are being S T O L E N right out of our bank accts.

I had this thought yesterday after reading about what happened in Cyprus. In a way, I think it's better to suffer ZIRP and QE than to be ambushed and immediately lose a certain percentage of one's wealth. At least with ZIRP and QE, you have time to acquire hedges against theft of purchasing power. That certainly can't be said of a seizure of assets. What's worse, if Cyprus were to agree to this robbery, who's to say it will not happen again?

Of course, the fairest course of action would be to force the bozos who borrowed and lent stupidly to take their medicine.

[shiny!]

Re: PCR on the Suppression of the Price of Gold

they ARE being taken, ms shiny!
with every passing day of ZIRP, our savings are being S T O L E N right out of our bank accts.

Yes, but while despicable it's legal, if you consider the Central Bank creating money to be legal in a Constitutional sense.

What they did in Cyprus: blatantly renigging on a written, legal guarantee and simply taking privately held deposits... that's a breakdown in the rule of law that is absolutely chilling.

[don]

Re: PCR on the Suppression of the Price of Gold

Yes, but while despicable it's legal, if you consider the Central Bank creating money to be legal in a Constitutional sense.

What they did in Cyprus: blatantly renigging on a written, legal guarantee and simply taking privately held deposits... that's a breakdown in the rule of law that is absolutely chilling.

like Mr Corzine . . .

[ProdigyofZen]

Re: PCR on the Suppression of the Price of Gold

Do you have any estimates on when the "easy" frack oil runs out? It seems from charting that roughly $95 a barrel oil is enough to provide a good flow rate from U.S. sources. I assume in x number of years that the low hanging frac fruit will be gone and it will take $100, $110, $120 ... oil to provide the necessary flow rate.
Will the price gently rise up or will we have a more or less fast ramp to a new plateau?

Charlie, I can tell you this.

I am hearing from all of the private and public E&P operators that they simply are refusing to buy existing production without "de-risking" the project. What that means is they want to acquire PDP (proved developed producing) properties.

One of the firms we are invested in brought 13 properties to the market and none of the bids met their expectations so no sale negotiations occurred. But 4 of the original bidders have come back for further review of the properties. (This in the last 5 months or so).

Acquirers want to buy current production and they will not bid on prospective wells even in proven fields. It seems they are catching on to the depletion rates.


North Dakota Oil Production reaches record in 2012: http://blogs.marketwatch.com/energy-...eaches-record/

When all of this "excess production" comes crashing down in say 2014 the oil market isnt going to like it.

But then again according to Kayne Anderson the largest institutional investor in the MLP asset class told me last week that current projections for US energy independence occurs within 10 years but they believe it will happen in 5 years........

[shiny!]

Re: PCR on the Suppression of the Price of Gold

like Mr Corzine . . .

This is even worse. MF Global was a business stealing from its customers to pay off JP Morgan. With MF Global, the government failed in its responsibility to enforce the law to protect citizens from theft.

Cyprus is a GOVERNMENT stealing from its citizens. How do Cypriot victims of theft go to their government for protection under the law, when the government itself is the thief? They can't. We' are very near the end of FIRE, IMO. No more room for can kicking. The body, starving, is now starting to eat itself.

There will be more and more actions by governments to confiscate the private wealth of citizens in order to protect banksters. They will attempt to frame this as "making the wealthy pay their fair share". But we can see from Cyprus that they will steal directly from the poor as well, in addition to robbing us through inflation. They might backpedal a bit this time to steal only from depositors with larger holdings, but the writing is clearly on the wall.

[vt]

Re: Gold, Oil, IMS insurance

Hmmm, "Gas at $42 a gallon". Peak cheap oil?

But wait! "A miraculous motor that could power the world!"

Available Tuesday at Redbox

"Atlas Shrugged Part 2"
The global economy is on the brink of collapse. Unemployment has risen to 24%. Gas is now $42 per gallon. Brilliant creators, from artists to industrialists, continue to mysteriously disappear at the hands of the unknown. Dagny Taggart, Vice President in Charge of Operations for Taggart Transcontinental, has discovered what may very well be the answer to a mounting energy crisis - found abandoned amongst the ruins of a once productive factory, a miraculous motor that could seemingly power the World. But, the motor is dead... there is no one left to decipher its secret... and, someone is watching. It's a race against the clock to find the inventor before the motor of the world is stopped for good. Who is John Galt?
Rated PG-13 by the Motion Picture Association of America for brief language."

Another movie that plays on a central theme at itulip is an oldie: Three Days Of The Condor". Most of us old timers have seen in many times, but if you haven't seen it do so; and see how prescient it was about what could have been. It's on HD Net on cable March 24th at 7 PM

[Polish_Silver]

Re: PCR on the Suppression of the Price of Gold

Today's run up I assume are people in Cypress, looking for a safe haven for their wealth. It's a sad day when the gvt
decides your savings are theirs. I assume the Greeks, then the Italians are looking over their shoulders, wondering when their insured bank deposits will be
taken.

Indeed. Given that public sector pension systems are bust, about the only thing people can do is literally bury coins in the back yard.

[coolhand]

Re: PCR on the Suppression of the Price of Gold

EJ-

Great chart & points...IMO you are 100% right. I think a similar thought, in the same vein as the above chart, is that the rise in US oil production is collateralizing QE. If US oil net imports fall, creditors will allow QE to continue. If net imports begin rising again, my bet is things go pear-shaped in the US very quickly...foreign creditors won't like watching us stimulate our economy with printed money while consuming more of the global market's oil to do so...that seems inherently unfair...

[Chris]

Re: PCR on the Suppression of the Price of Gold

There is a huge market for paper gold. It sucks up billions of dollars that would otherwise go to actually buying and selling the real metal. In my opinion, this is true price suppression. And, the futures market can be manipulated with ease... you could see this in the silver rise and crash.

How high would the price of gold bullion be if you actually had to buy the metal in order to invest in it?

Volcker said keeping the price of gold down is important to the government. Why not take their word on it?

I hear and read this a lot but how can it possibly be?

Large buying and selling in the futures market will alter the term structure of the futures curve. That would either move the spot price through a shift of the curve upwards or downwards making gold either a bargain for buyers or ripe for sellers to take profits, or would by push the curve into a steep backwardation or contango which would provide a great arbitraging opportunity for anyone who could take and make delivery of the physical bullion.

To my mind this isn't manipulation just normal trading behaviour for a volatile commodity market in which there are very few players with the capability to store gold.