Investing in precious metals 101

Tag Archives: comex

  • Daily Digest
    Image by Billy Wilson Photography, Flickr Creative Commons

    Daily Digest 1/1 – An Economic Call To Arms, The Dark Bounty Of Texas Oil

    by DailyDigest

    Monday, January 1, 2018, 4:10 PM

    2
    • The Next Financial Crisis Will Be Worse Than the Last One 
    • H.G. Wells vs. George Orwell: Their Debate Whether Science Is Humanity's Best Hope Continues Today 
    • Peak México
    • A Nobel Prize-winning economist thinks we’re asking all the wrong questions about inequality
    • An Economic Call to Arms: The Path to Prosperity for Commoners, Capitalists & Crypto-Anarchists Alike
    • Hidden in Plain Sight
    • Science Says Fitness Trackers Don't Work. Wear One Anyway 
    • The Dark Bounty Of Texas Oil 
    • Guest post: Bioenergy ‘flaw’ under EU renewable target could raise emissions
    • Alberta issues alert, natural gas outages in north during extreme cold snap
    • Summerside smart grid uses 46 per cent wind power

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  • Insider

    Off The Cuff: All Things Silver

    Understanding silver's moonshot potential
    by Adam Taggart

    Friday, November 4, 2016, 6:39 PM

    7

    In this week's Off The Cuff podcast, Chris and Ted Butler discuss:

    • How Precious Metals Spot Prices Get Set In This Market
      • The big banks operating in the paper markets have oversized influence
    • Silver's Moonshot Potential
      • An "accident waiting to happen" in terms of upside
    • Likely Triggers Of A Silver Supply Squeeze
      • A number of candidates abound
    • JP Morgan Is Amassing The World's Largest Silver Horde
      • Positioning itself for higher prices ahead?

    Ted Butler returns to provide an extremely in-depth explanation of how the precious metals futures markets work (very important to understand this, as that's where PM prices are determined). Yes, it's an unlevel playing field; and yes, the big banks are at the heart of the unfairness. But — as he explains in this hour-long exposition — Ted is confident the fundamentals of supply and demand in the silver market will one day trump all, and why silver is "an accident waiting to happen" in terms of price upside:

    What I am saying is: there is such an incredibly small amount of new silver that is available from current production (I’m including recycling because that is where it basically comes from) that it can be gobbled up in a second.

    How can the price be so cheap with these kinds of facts and circumstances? The answer is we go back to the managed money, technical funds and the commercial banks. The price is being set in paper trading; it's not being set by the actual acquisition or disposal of real metal. It has nothing to do with that at all. And that can’t last forever.

    We've already experienced expressions of this fact. I think we started talking with each other years ago when silver was in the single digits — $4, $5, $6 an ounce — then it ran to close to $50 in the beginning of 2011. The reason it can have these breathtaking price advances is because there is so little of it that when anybody goes to buy it, it just has a pronounced and disproportionate impact on price.

    As Bunker Hunt, the late famous silver speculator and investor from years ago said, and it is more true today than it has ever been: Silver is an accident waiting to happen. And that accident is in terms of price to the upside. 

    Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.

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  • Podcast

    Jim Rickards: The New Case For Gold

    A powerful set of arguments for owning the yellow metal
    by Adam Taggart

    Monday, April 4, 2016, 4:32 AM

    51

    Monetary expert Jim Rickards returns this week to share the insights from his latest work The New Case For Gold, a detailed and highly-researched study of the fundamentals likely to drive the price of gold bullion in the years to come.

    Rickards is quite confident that the price is going higher — much higher in fact — as the current world fit currency regimes falter, to be replaced by ones backed (at least in part) by bullion.

    On the way to that outcome, expect the price to be subject to the geopolitical interests and aims of the largest players on the chessboard.

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  • Blog
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    The Screaming Fundamentals For Owning Gold

    We're at a moment of historic opportunity
    by Chris Martenson

    Tuesday, December 8, 2015, 4:53 PM

    43

    Every year or two we update this report, which lays out the investment thesis for gold. Here is this year's version.

    Silver is touched upon only as necessary; as a separate report of equal scope is required for that precious metal.

    Gold is one of the few investments that every investor should have in their portfolio. We are now at the dangerous end-game period of a very bold but very reckless & disappointing experiment with the world's fiat (unbacked) currencies. If this experiment fails — and we observe it's in the process of failing — gold will provide one of the best forms of wealth insurance. But like all insurance products, it only works if you buy it before you need to rely on it.

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  • Insider
    Sgame | Dreamstime.com

    Why Gold Is Headed Higher & May Become Unavailable At Any Price

    Time is now short
    by Chris Martenson

    Friday, September 25, 2015, 7:55 PM

    82

    Executive Summary

    • The amount of gold in London's vaults dropped by 1/3 in the past year(!)
    • Activity at the COMEX is flashing warning signs
    • When to worry about physical defaults
    • Simple math will win out: the West is fast running out of its bullion

    If you have not yet read Part 1: Buy Gold While You Still Can! available free to all readers, please click here to read it first.

    An interesting piece of detective work was done by Ronan Manly at Bullionstar.com where he noted that the LBMA reported pronounced drops in the amount of gold stored in London vaults, which includes both gold held at the Bank of England as well as non-official vaults within the LBMA system.

    To summarize his report, here’s the amount of gold reportedly held in London:

    • April 2014 – 9,000 tonnes
    • Early 2015 – 7,500 tonnes
    • June 2015 – 6,250 tonnes

    That means that 2,750 tonnes left London over the past 1+ year.

    Does such a large number even make sense?

    Well, sure, if we consider that just four countries cumulatively imported (or increased reserves) by ~4,500 tonnes since the beginning of 2014.

    Confirming this is the handy chart below of gold flows as compared to…

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  • Podcast

    Eric Sprott: Global Gold Demand Is Overwhelming Supply

    Setting the stage for much higher prices ahead
    by Adam Taggart

    Sunday, November 16, 2014, 4:11 PM

    18

    Precious metals have had an especially tough go of it over the past month. Both gold and silver are back in price territory last seen in 2010.

    Eric Sprott returns to the program to discuss the facts as we know them in this market, and what's likely to happen from here. Specifically, he explains the tremendous imbalance currently seen between global supply and demand for precious metals. In his view, prices will have to correct upwards — prodigiously — to bring the two back in alignment.

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  • Podcast

    Ted Butler: The Silver Nightmare Will Be Over Soon

    The argument for a near-term monster rally
    by Adam Taggart

    Saturday, November 1, 2014, 6:20 PM

    58

    Halloween couldn't have been more terrifying for silver investors. The gray metal cracked under $16/oz on Friday, a price not seen for nearly half a decade.

    For years now, it has seemed like silver has been beaten down so badly its price couldn't go lower. But then it has.

    Why has silver seen such a gut-wrenching price decline? (now down 2/3 compared to its high in late 2011). And will it ever see brighter days again?

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  • Insider
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    Anti-Gold Propaganda Reaches Fever Pitch

    Take care to read through the 'framing'
    by Chris Martenson

    Wednesday, April 16, 2014, 7:03 PM

    25

    There are times when the anti-gold propaganda in the western world, or at least the US, becomes just too much to let it pass by. I usually let it roll off but sometimes it needs to be illustrated for what it is.

    A deliberate attempt to get people in the west to lose faith in the ability of gold to protect one's wealth, presumably with the side benefit of causing those same people to either not purchase gold at all, or to sell what they already have.

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  • Insider
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    The New Game-Changers for Gold & Silver

    A new parade of reasons to expect higher prices soon
    by Adam Taggart

    Thursday, June 13, 2013, 1:19 AM

    28

    Executive Summary

    • Large players (and likely price manipulators) now have incentive for precious metals prices to rise
    • Investor demand for bullion remains at record highs
    • Competition for bullion from the East continues to heat up
    • Central banks buy more bullion as Comex inventories deplete
    • The key signs to know when it will be time to sell your gold & silver

    If you have not yet read Part I: Is Gold at a Turning Point? available free to all readers, please click here to read it first.

    Manipulation

    Much has been written across the Web (including here at PeakProsperity.com) about whether or not the precious metals markets are manipulated in price by big players (major multi-national banks such as JP Morgan). Without delving into the many arguments on both the pro and con sides, Chris and I are of the opinion that sufficient data exists to convince a reasonable observer that price manipulation in the PM markets is indeed real, or, at the very least, highly probable. (For those remaining doubters out there, have a look at the evidence here, here, and here, and let us know if you have a rational, non-manipulative explanation.)

    One of the most glaring signs of likely manipulation has been the massive short positions that a small number of large banks (JP Morgan being the most prominent among them) have held for many years, particularly in the silver market [measure positions as % of world silver production]. And not only were these unlimited positions allowed, but this cabal of banks was allowed to naked-sell PMs short (i.e., sell metal without actually owning it first). On the other side of the coin, the long side, position limits were enforced, and there was no similar ability to buy more metal than one could pay for. This imbalance of rules certainly provides the mechanism by which PM prices could be artificially jockeyed more easily to the downside. In this context, a decline from the high $40s to the low $20s looks more understandable.

    Well, a very important part of this story has just shifted. The CFTC (Commodities Futures Trading Commission) publishes a monthly report illustrating the positions taken in Comex Futures Contracts

    After nearly ten years of being net short in Comex gold futures, U.S. banks have been recently decreasing those short positions, and for the first time since 2004 (with the exception of a single month in 2008) they have flipped to become net long gold in May (see bottom chart below)…

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  • Blog
    © Sgame | Dreamstime.com

    Is Gold at a Turning Point?

    Precious metals investors' heartbreak may soon be over
    by Adam Taggart

    Thursday, June 13, 2013, 1:18 AM

    32

    There's no way to sugarcoat the dismal performance of the precious metals in recent months. But a revisitation of the reasons for owning them reveals no cracks in the underlying thesis for doing so.

    In fact, there are a number of new compelling developments arguing that the long heartbreak for gold and silver holders will soon be over.

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