- Currencies & metals get manipulated downward on Monday…
- Bill Bonner joins us this morning…
Good Day… And a Tom Terrific Tuesday to you! Well, it wasn’t a Marvelous Monday for Gold yesterday… See? I told you the gain had been tenuous… Talk about a lot of cry babies! The sports channels, and even CNN chipped in, are featuring the cry babies that didn’t get picked by the College Football Playoff Committee.. I had to turn it off, and see what I could watch on Prime Video! Welcome to the club that my beloved Mizzou Tigers have belonged to for decades, and that is the club of disappointment… Hello, we’re glad to have teams join us in the club!
Well, as I said above, Gold got whacked yesterday, and Silver also got taken to the woodshed, after both of them enjoying some very nice gains last Friday, those gains were wiped out yesterday, with Gold losing $41.90, and Silver losing 98-cents, and the $25 handle! I don’t have to tell you longtime readers who did the selling yesterday… Yes, of course there had to be some profit taking, but those are short timers anyway, and they chipped right in on the short Gold Paper trades… Gold closed the day at $2,030.10, and Silver at $24.55… It was a day to remember, in December, for sure!
The dollar also saw a bounce after getting sold on Friday last week, it turned the tables yesterday and gained 5 index points in the BBDXY… I don’t have to tell you longtime readers who came to the rescue of the dollar either… It’s the same-o, same-o, when it comes to saving the dollar, and I shake my head in disgust… Not that I long for a dollar collapse, mind you, I just want the markets to decide without intervention, on the fair value of assets… And Currencies, metals, Oil, bonds, and even stocks get manipulated to some degree, some more than others, but interfered with all the same…
The price of Oil remained in the lower range yesterday, and held to its $73 handle all day… And the headline on Bloomberg.com last night went like this: “Bonds rally after briefly reacting to Powell’s hawkish words”…
So, all will be right with the U.S. again soon, with stocks soaring, Bonds soaring, and Bitcoin soaring… and the dollar not in trouble any longer… Right? I mean that’s what the price manipulators want to believe, that all’s well in the U.S., and you can tell that by watching the asset prices soar… TSK, TSK, TSK…. I have to be the only one that sees this is all a sham… Because I’m the only one talking about it being all a sham!
Good Heavens on Earth… The price manipulators can’t have Gold reaching new all-time highs, because that draws a different picture on the U.S. … That inflation hasn’t gone away, that the debt is too high, and the debt servicing costs will soon have to be a part of our borrowings… OK, I’m off my soapbox for now…
In the overnight markets last night… The dollar got bought some more, and the currencies are all looking like they are coming down with a cold… The only currency that gained VS the dollar yesterday was the Chinese renminbi… The BBDXY is up 1.85 index points this morning, and Gold is down $3 in the early trading today. Silver is down too, this time by 21-cents… So, now we sit here and wait to see if the price manipulators are finished with their assault on Gold & Silver, or is there more in their tank?
The price of oil remained trading with a $73 handle overnight… And the 10-year is on one of the strangest, and wildest rides ever, and trades with a 4.22% yield this morning… Mr. Toad’s Wild Ride at Disneyworld, had nothing on the ride the 10-year has been on since the beginning of Rocktober… And if you’re wondering, the U.S. yield curve is still inverted, and you can still get 5% yield in a 1-year T-Bill… This inverted yield curve is just not right… And it’s telling us that there is something down the road that isn’t going to be good… So, put that in your notes, and come back to it when all of this goes to hell in a hand basket, and say, “Hey! Chuck told us that the inverted yield curve was an omen, and he was right!
I just can’t get over the way Gold & Silver were attacked yesterday… Now, I’ve witnessed some take downs previously, but none were of the ilk of this one… There was some pent up frustration in their trading… In times like this I turn to Ed Steer to see what he said about this takedown… So, let’s hear from Ed… “In one of the most horrific, coordinated and collusive attacks in memory, the short sellers of last resort/the commercial traders of whatever stripe, stepped into gold and silver’s moon-shot rallies about fifteen minutes after they began around 8:15 p.m. in GLOBEX trading on Sunday evening in New York when the market was the most illiquid and thinly-traded.
And you can forget about any other influences, the dollar index, the stock market or anything else, as this was strictly a wall-to-wall paper affair in the GLOBEX/COMEX futures market.
There was nothing at all subtle about it…like a brick through a plate-glass window. They weren’t even trying to hide what they were doing. At their spot high ticks, gold was up $75 — and silver by 46.5 cents.” – Ed Steer…
Of course you can read all of Ed thoughts at www.edsteergoldsilver.com P.S. you have to subscribe to his letter but then most of you already do!
This summer I’m going to Ireland, and will spend a couple of days in Oslo, Norway… I’m so excited about this trip, and will check out Norway, the country that I talked about so glowingly last week… This is a bucket list trip to Ireland, to visit the Butler House Hotel, and all of the pubs! HA! Hopefully all the bad stuff going on in Dublin right now is a thing of the past, because I don’t want to get mixed up in riots!
Yeah, from what I read; the Irish people have had enough immigrates… What would it take to get the U.S. people fired up about immigrates? We, as a country of law-abiding people, continue to accept all that’s being thrown at us, until… we won’t accept it any longer… I’m just saying…
It’s the same with Gold & Silver manipulation… What will it take to get our lawmakers or regulators to deal with these brazen attacks on the assets? Think about that for a minute…
The U.S. Data Cupboard yesterday had the Rocktober Factory Orders, and once again this data print illustrated what I keep saying that the economy is NOT strong… Factory Order were negative -3.65%… Combine that with the Durable Good Orders that were negative last week, and an ISM that show further contraction in manufacturing, and you’ve got one pile of bad news for the economy… I’m just saying…
There’s really nothing in the Data Cupboard today, other than the Job Openings data… And when was the last time the markets even noticed this data print? So, we’ll move on from here…
To recap… in what was the most brazen of take downs, the price manipulators piled in and on and took Gold & Silver down to levels they were before their recent rallies… These guys were not taking any prisoners here, folks, they meant business, and now Chuck wonders if they are finished… The dollar got manipulated higher too, On Friday, last week the BBDXY closed the week at 1,234, and after yesterday’s price rigging the BBDXY was 1,241… On Friday, the euro was nearing 1.10… and today it’s barely hanging on to 1.08… So, it was price manipulators Day in the markets, and those dirty dogs didn’t even care if you knew what they were up to! The Chinese renminbi was the only currency to gain VS the dollar yesterday, and that alone tells you what you need to know about the dollar and the currencies…
For What It’s Worth… When I read this on Friday last week, I thought that it might be FWIW worthy, and the more I thought about it, and then saw it in Ed Steer’s Saturday letter, I knew then it was FWIW worthy, and so here it is.. This is Bill Bonner at his best, I’ll say no more about it, other than it can be found here: The King’s Head – by Bill Bonner – Bonner Private Research
Or, here’s your snippet: “Pity the “People’… the non-deciders…the middle class… hoi polloi…the majority…the voters! They are like hungry mice waiting for crumbs to fall from the table.
But ours is not a whine about ‘inequality.’ We take it for granted that all people are not created equal. Some are leaders. Most are followers. Some are thinkers; most leave the thinking to others. Inequality is inevitable…undeniable…part of the ‘way we are;’ we sort ourselves into teams, tribes, classes, castes, sects, clubs, nations and races.
Some become members of the ‘upper’ class of deciders and influencers. Others, mostly do what they are told.
The elites – whether by conquest or ballot box – set themselves up as government…and use their power to rip everyone else off. We are exaggerating, of course. There’s always more to the story. And the ‘more’ here is that the elites are also very useful. They’re responsible for the administration of justice…for much of our science…some of our learning and great breakthroughs of capitalism…for making the trains run on time…keeping the airplanes from falling from the sky…and for much of the output that makes our modern lives more agreeable.
A Government of Laws
But over time, the deciders get more and more power. Power leads to corruption. That’s why the American Constitution was not meant to give them power, but to keep them in check. It expressly limits the power of government to certain things. Of the rest, it says: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States or to the people, respectively.” The idea was to prevent Washington from getting too big for its britches.
This is also why Jefferson remarked that we may need a revolution every 10 years or so. “God forbid we should ever be 20 years without such a rebellion,” he said.”
Chuck again… You know what John F. Kennedy said to a group of finance ministers and economists? “the last time there was this much intelligence in this room, Thomas Jefferson, sat alone.”…
Market Prices 12/5/2023: American Style: A$.6560, kiwi .6138, C$ .7361, euro 1.0815, sterling 1.2619, Swiss $1.1444, European Style: rand 18.9116, krone 10.8835, SEK 10.4522, forint 350.71, zloty 4.002, koruna 22.4387, RUB 92.20, yen 147.67, sing 1.3394, HKD 7.8179, INR 83.38, China 7.1431, peso 17.48, BRL 4.9475, BBDXY 1,241.86, Dollar Index 103.80, Oil $73.00, 10-year 4.22%, Silver $24.34, Platinum $908.00, Palladium $970.00, Copper $3.74, and Gold… $2,027.34
That’s it for today… I saw two major move days in Gold Back-to-back, and in the end, Gold was right back to where it was before the selloff… A lot of people got hurt in those two days of trading, that’s for sure! Well, we’re down to having the vanity sinks and faucets hooked up, and then maybe I’ll be able to park by car in the garage again! Slowly, but surely all the carpentry stuff has been removed from the garage… They sure took their good, sweet time getting all that done… I’m just saying… Kathy had the drywall and painting folks back to redo some spots, that she wasn’t fond of, and that delayed their finish even longer! But it had to be done… We paid a lot of money for this to all look like brand new again, again, I’m just saying… Jack Jezzro takes us to the finish line today with his “Bossa Nova style” version of the song: I Saw Mommy Kissin’ Santa Claus…. I hope you have a Tom Terrific Tuesday today, and please Be Good To Yourself!
Chuck Butler