Showing posts with label Euro. Show all posts
Showing posts with label Euro. Show all posts
28 February 2012
21 February 2012
SilverDoctors: Eurozone Reaches Deal on 2nd Greek Bailout
SilverDoctors: Eurozone Reaches Deal on 2nd Greek Bailout: The dollar just fell off a cliff, dropping 50 basis points in seconds, and the EUR/USD went vertical on the Eurozone announcement of the New...
30 January 2012
24 January 2012
Gold and Silver advance/Euro breaks to the upside/No Greek deal
Good evening Ladies and Gentlemen:
Today's commentary is will short as I have arrived home late today.
The price of gold rose by $14.30 to $1678. Silver also rose by 59 cents to $32.24.
I would like to caution you that we have the FOMC meeting results on Wednesday and Thursday is the dreaded options expiry. So be careful as our bankers surely raid around these events.
Let us head over to the comex and assess trading, inventory movements and of course amounts of gold and silver standing.
The total gold comex OI fell by 2833 contracts from 441,320 to 438,487. Because gold had a good day on Friday we must have seen some liquidations probably by our banker friends. The front options expiry month of January saw its OI fall from 53 to 42 for a loss of 11 contracts. We had 11 delivery notices on Friday so we neither gained nor lost any gold and thus no cash settlements. The next big delivery month for gold is next week as first day notice is next Tuesday the 31st of January. Here the OI fell from 156,621 to 148,308 and this movement to a futures month is on schedule. Nothing earth shattering here. The estimated volume at the gold comex came in at 147,018 which is very mild. The confirmed volume on Friday with a big rise in gold came in at 153,683 which is also tame. Due to the confiscation with respect to the MF GLobal fiasco fewer players are playing the comex casino.
The total silver comex OI rose in contrast to gold. The new Oi rests tonight at 104,406. In gold we had liquidation but in silver we had accumulation of the metal by stronger hands. The front options expiry month of January saw its OI fall from 152 to 108 for a loss of only 44 contracts despite 114 delivery notices on Friday. We thus gained 70 contracts of additional silver standing (350,000 oz) and lost nothing to cash settlements. The next big delivery month is March and here the OI rose from 51,351 to 53,024. We are still quite away from first day notice which is Feb 28.2012 for March delivery. The estimated volume at the silver comex was very light at 42,910. The confirmed volume on Friday was also light at 46,146.
20 January 2012
19 January 2012
The Euro Emperor Has No Clothes
Anyone familiar with accounting, will recognize that banks are reluctant to mark their assets to market value as such actions would severely impact their balance sheets.
In the event of a Greek default, which may happen as soon as the middle of March, we can expect to see bank lending slow or even freeze as banks attempt to preserve capital.
Due to the potentially catastrophic impact of such an event, we can expect to see desperate Eurocrats racing around the clock to find some way to stop or slow the contagion.
Several ideas have been floating around including a massive liquidity (bailout) fund on the order of One Trillion up to Ten Trillion Euros.
18 January 2012
SilverDoctors: Time to Bunker In With Phyzz
SilverDoctors: Time to Bunker In With Phyzz: From AGXIIK: As my thinking has evolved from trading paper to owning some and then more silver and gold, my conclusions are changing, shif...
Our exponential debt system
The word “debt crisis“ has made it into everyone’s vocabulary by now. People are talking about how we were “living beyond our means” and are debating how spending cuts, tax raises or some combination of the two could be used to salvage the situation. However, often times there is a gross misunderstanding about why there is so much debt in the first place and why it seems to constantly grow. Many people fail to see that growth within our current monetary system relies on exponential increases in debt.
To understand the debt crisis, you have to understand that in reality this is a “money crisis”. Let me explain this further.
Today, all money is created in the banking system. It originates from the central bank and is brought into existence by an extension of its balance sheet. This means that there it is a simple booking entry: new money on the liabilities side, and debt on the assets side. Yes that’s right: money is created through credit – which is nothing but a nice word for debt. In contrast to most of human history – where money has been a tangible asset with intrinsic value attached to it, such as gold and silver – today all dollars, euros, pounds and all other currencies are based on debt. This is taken on by governments, companies and private citizens all over the globe. Implicit in this is trust on the part of lenders that this debt will be repaid one day in the future.
So what's the problem? Let’s say you take out a loan for $100. The money you receive will be created from nothing once you sign the paper to take out the loan and you are then obligated to pay back $105 after say one year. Now here is the all-deciding question: Where is the interest coming from that you need to pay back the loan? At the moment the only money in circulation is your $100. The only way to solve this riddle is that somebody somewhere in the economy has to take out another loan to create the money that enables you to pay back the first loan.
To sum up: In a debt based fiat money world there will always be debt for if there was no debt there would be no money. Since debt is not paid off, the compounding interest on it forces us to grow at the same pace. Since this experiment has failed we are now facing the collapse of this debt system. Prepare yourself accordingly by diversifying into tangible assets such as gold and silver, and by educating yourself and your loved ones about the nature of the economic challanges they are likely to face in the years ahead.
To understand the debt crisis, you have to understand that in reality this is a “money crisis”. Let me explain this further.
Today, all money is created in the banking system. It originates from the central bank and is brought into existence by an extension of its balance sheet. This means that there it is a simple booking entry: new money on the liabilities side, and debt on the assets side. Yes that’s right: money is created through credit – which is nothing but a nice word for debt. In contrast to most of human history – where money has been a tangible asset with intrinsic value attached to it, such as gold and silver – today all dollars, euros, pounds and all other currencies are based on debt. This is taken on by governments, companies and private citizens all over the globe. Implicit in this is trust on the part of lenders that this debt will be repaid one day in the future.
So what's the problem? Let’s say you take out a loan for $100. The money you receive will be created from nothing once you sign the paper to take out the loan and you are then obligated to pay back $105 after say one year. Now here is the all-deciding question: Where is the interest coming from that you need to pay back the loan? At the moment the only money in circulation is your $100. The only way to solve this riddle is that somebody somewhere in the economy has to take out another loan to create the money that enables you to pay back the first loan.
To sum up: In a debt based fiat money world there will always be debt for if there was no debt there would be no money. Since debt is not paid off, the compounding interest on it forces us to grow at the same pace. Since this experiment has failed we are now facing the collapse of this debt system. Prepare yourself accordingly by diversifying into tangible assets such as gold and silver, and by educating yourself and your loved ones about the nature of the economic challanges they are likely to face in the years ahead.
17 January 2012
Irish banks will shrink and shrink
January 16, 2012 Post by David McWilliams
The European debt crisis is moving swiftly to the next phase following the downgrade of France and the collapse of the Greek negotiations with its creditors last Friday night.
It is becoming increasingly obvious that there will be no deal in Greece. This is good news because it means the end of the pass-the-parcel-ponzi-scheme, whereby the bill for more and more institutional debt was passed on to more and more innocent people who had nothing to do with the debt in the first place.
Greece will default – as it should. The bondholders will get roasted – as they should – for making bad investments. The laws of capitalism will be allowed to do their thing. Debtors and creditors will pay – as they both should – with both parties sharing the cost.
Whether this leads to Greece being pushed out of the euro remains to be seen. An opportunistic play by a desperate Greek government might be a total default, followed by the reintroduction of a new currency and then the restart button is hit. Initially, it would be an international pariah, but over time it would recover.
The European debt crisis is moving swiftly to the next phase following the downgrade of France and the collapse of the Greek negotiations with its creditors last Friday night.
It is becoming increasingly obvious that there will be no deal in Greece. This is good news because it means the end of the pass-the-parcel-ponzi-scheme, whereby the bill for more and more institutional debt was passed on to more and more innocent people who had nothing to do with the debt in the first place.
Greece will default – as it should. The bondholders will get roasted – as they should – for making bad investments. The laws of capitalism will be allowed to do their thing. Debtors and creditors will pay – as they both should – with both parties sharing the cost.
Whether this leads to Greece being pushed out of the euro remains to be seen. An opportunistic play by a desperate Greek government might be a total default, followed by the reintroduction of a new currency and then the restart button is hit. Initially, it would be an international pariah, but over time it would recover.
16 January 2012
SilverDoctors: Gold Gains Alongside Dollar, "Clear Winner" from S...
SilverDoctors: Gold Gains Alongside Dollar, "Clear Winner" from S...: Spot gold in Euros hit its highest level since December 8 at €41803 per kilo (€1300 per ounce) – 5.4% off September's all-time high. Rati...
SilverDoctors: Gold Nears €1,300/oz - Euro Lower After EU Downgra...
SilverDoctors: Gold Nears €1,300/oz - Euro Lower After EU Downgra...: Friday's news of France's loss of its AAA rating has put the European Financial Stability Facility (EFSF) at risk. The Eurozone economy re...
15 January 2012
13 January 2012
SilverDoctors: Markets "Comfortable Again with Gold", Euro Falls ...
SilverDoctors: Markets "Comfortable Again with Gold", Euro Falls ...: SPOT MARKET Dollar gold prices dipped to $1637 an ounce Friday morning London time – a 1.4% fall from Thursday's high – as the Euro fell ag...
12 January 2012
Euro Collapse Means Flight To Precious Metals For Investors
Posted by David Morgan on January 12, 2012
Tracy Weslosky: Happy New Year, David. It’s our first Currency Countdown for 2012, how are you today?
David Morgan: I’m well, thank you, Tracy.
Tracy Weslosky: Well let’s talk about what’s happening with the Euro. I’d like to start about the bonds and the impact from the collapse of the Euro. Where do you want to begin?
David Morgan: The overall conditions in Euro, in my view and many commentators is the Eurozone continues to deteriorate, and we’re in a situation where you just cannot get this group of individual countries banded together for political purposes on an economic basis that it is equal for everybody. It’s impossible, and the markets are bearing that out. So strength in one area, weakness in another, and that will continue. As the old adage goes, a chain is as strong as its weakest link. The weak links are several.
You’ve got Spain, Italy, Greece, and others, Ireland. And they’re basically in a depression, these countries. And there’s all kinds of people literally in the streets. So even though France might look good today, and Germany might look good today and the last week or so and there’s all kinds of commentary about resolution of problems and the ECB coming to the rescue. In my view it’s a smoke screen; things are deteriorating basically before our eyes.
Tracy Weslosky: Happy New Year, David. It’s our first Currency Countdown for 2012, how are you today?
David Morgan: I’m well, thank you, Tracy.
Tracy Weslosky: Well let’s talk about what’s happening with the Euro. I’d like to start about the bonds and the impact from the collapse of the Euro. Where do you want to begin?
David Morgan: The overall conditions in Euro, in my view and many commentators is the Eurozone continues to deteriorate, and we’re in a situation where you just cannot get this group of individual countries banded together for political purposes on an economic basis that it is equal for everybody. It’s impossible, and the markets are bearing that out. So strength in one area, weakness in another, and that will continue. As the old adage goes, a chain is as strong as its weakest link. The weak links are several.
You’ve got Spain, Italy, Greece, and others, Ireland. And they’re basically in a depression, these countries. And there’s all kinds of people literally in the streets. So even though France might look good today, and Germany might look good today and the last week or so and there’s all kinds of commentary about resolution of problems and the ECB coming to the rescue. In my view it’s a smoke screen; things are deteriorating basically before our eyes.
German exports fall/Rumours of French downgrade/Huge gold imports into China/ ECB deposits of Euros at record levels again.
Wednesday, January 11, 2012
Good evening Ladies and Gentlemen:
Gold closed up by $8.20 to 1639.20. Silver rose by 8 cents to $29.86. Since the gold shares have languished all day today, it is almost a certainty and the bankers will raid tomorrow. I urge you to please to do play with these crooks. There are many facilities available to buy the physical precious metals. The leverage business is now out so the only way you will win is to buy physical gold and silver and be thankful that you paid below the real price of these metals.
Before heading over the comex, the rumours of the street was an imminent French downgrading of their coveted AAA rating:
(courtesy GATA)
"Major banks advising clients that France has been put on 12hr notice regarding its AAA rating"
09:49 French Treasury source says France has not been informed of any imminent decision regarding its credit rating -- Reuters
* There have been rumors, again, that a sovereign rating downgrade for France is coming and today's version of the rumor indicated France had been given 12 hours notice
* €/$ 1.2700
Let us head over to the comex and assess trading, inventory movements and amounts of metal standing for delivery.
The total gold comex rose by 3879 contracts as gold rose by almost $24.00 yesterday. The bankers no doubt supplied much of the paper gold. The front options expiry month of January mysteriously saw its OI rise from 16 to 30 for a gain of 14 contracts despite one delivery notice yesterday. Thus we gained 15 contracts or 1500 oz of gold standing. The next big delivery month is February and here the OI fell from 203,070 to 193,494 as those that needed to roll, did so. The estimated volume today was very low at 125,399. The confirmed volume yesterday was pretty good at 205,864.
The total silver comex OI continues in its narrow channel path. Today the OI rests at 104,345 a drop of exactly 400 contracts from yesterday. The front options expiry month of silver also saw its OI rise from 57 to 83 for a gain of 26 contracts despite a delivery of 42 contracts yesterday. We thus had a huge 68 contract increase in additional silver standing or 340,000 oz. The next big delivery month is March and here the OI fell by around 500 contracts to 56,387. The estimated volume today was a touch higher than normal at 37,257. The confirmed volume yesterday came in at 43,989. The volumes in the silver comex have been noticeably weaker these past several weeks.
Gold rises as ECB comments lift euro
By Jan Harvey
LONDON | Thu Jan 12, 2012 10:14am EST
(Reuters) - Gold climbed towards $1,660 an ounce on Thursday after European Central Bank president Mario Draghi said the supply of cheap money released by the bank was helping stabilize the banking system and lift the euro zone economy, boosting the euro.
LONDON | Thu Jan 12, 2012 10:14am EST
(Reuters) - Gold climbed towards $1,660 an ounce on Thursday after European Central Bank president Mario Draghi said the supply of cheap money released by the bank was helping stabilize the banking system and lift the euro zone economy, boosting the euro.
11 January 2012
SilverDoctors: A Look Behind the Curtain
SilverDoctors: A Look Behind the Curtain: Money flows to the US are in the hundreds of billions of Euros. The 50 largest EU banks are seeing capital flowing from their vaults f...
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