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first_imgSponsor Advertisement The powers that be were lying in wait for the release of yesterday’s U.S. GDP numbersThe gold price didn’t do much in Far East trading on their Wednesday.  The tiny rally that did develop, rolled over around 3:30 p.m. Hong Kong time…and it was a slow slide from there into the Comex open in New York on Wednesday morning…and by that time, the price was basically back to unchanged from Tuesday’s close.Ten minutes after the open the GDP data came out…and away went the gold price…but ran into a not-for-profit seller almost immediately.  The high tick of $1,685.20 spot came around 10:30 a.m. Eastern time…and the price wasn’t allowed to get any higher than that for the rest of the day.From that high tick, the gold price got sold off about nine bucks into the 5:15 p.m. electronic close in New York.Gold closed at $1,676.40 spot…up $12.50 on the day…and well off its high tick.  Net volume was immense…around 200,000 contracts…all of it in April [the new front month] or beyond.  It was blatantly obvious the JPMorgan Chase et al threw everything at this rally to prevent to from blowing through the $1,700 price level like a hot knife through soft butter.Compared to what happened to the price in New York yesterday, the Wednesday price action in silver in both the Far East and early London trading looked comatose.  Silver also blasted off at 8:30 a.m…and within thirty minutes, two thirds of silver’s gains were in for the day.  From there, the price worked its way slowly higher…with the high tick [$32.40 spot] coming in the electronic market…around 2:20 p.m. Eastern time.  The low tick of the day in New York…$31.18 spot…came right at the Comex open.Of course silver wasn’t allowed to close anywhere near its high….and finished the Wednesday session at $32.02 spot…up 64 cents.  Volume was a stunning 63,000 contracts…as “da boyz” were waiting to go short all comers…or maybe it was some of Ted Butler’s raptors selling long positions for a profit.  What ever it was, the buyers ran into a tidal wave of selling.Here are the charts for platinum and palladium… Palladium actually finished down on the day after getting smacked pretty good at the Comex open.  No free markets to be found here, either.The dollar index opened on Wednesday morning in the Far East at 79.57…and traded sideways until around 3 o’clock in the afternoon in Hong Kong…and then it began to head south…hitting its nadir at 11:30 a.m. in New York.  From there it traded almost ruler flat into the close…finishing the Wednesday session at 79.26.  The index closed down 31 basis points.  No correlation between the currencies and the precious metals again yesterday, either.Not surprisingly, the gold equities gapped up two percent at the open.  But a not-for-profit seller showed up immediately…and sold the shares down into negative territory just before the Comex close.  The tiny rally in both gold and silver that came shortly after the Comex close lifted the gold stocks back into positive territory for about ninety minutes, but then the selling began anew…and the HUI closed virtually on its low of the day…down 0.73%.No for-profit seller ever sells a long position into a rally like this…ever!  And if it wasn’t a long seller, then it must have been someone putting on a massive short position.It was the same situation in the silver shares and, without a shadow of a doubt, it was the same entities involved in sticking it to the silver equities as it was the gold equities.  Despite the huge gains in the silver price, the shares finished mixed at best…and Nick Laird’s Intraday Silver Sentiment Index closed virtually unchanged…up a tiny 0.07%.(Click on image to enlarge)It goes without saying that the mining companies that we own shares in will say or do absolutely nothing about this outrageous and grotesque interference in what once were free markets.  We need never worry about the managements and boards of directors ever serving the best interests of their true owners…us…because they won’t.  John Embry said about a decade ago that the miners are either “ignorant, naïve, or complicit”.  In actual fact, it’s now worse than that, because the more obvious the price management scheme becomes to everyone on Planet Earth, the more they dig in their heels and pretend that it doesn’t exit…and if they do acknowledge it, aren’t prepared to do anything.  Wow!  You couldn’t make this stuff up.  Whatever happened to their fiduciary responsibility to their shareholders?The CME’s Daily Delivery Report for Wednesday [First Notice Day for the February delivery month in gold] was an eye-opener.  There were 7,588 contracts posted for delivery within the Comex-approved depositories on Friday…and it involved ‘all the usual suspects’.  The two biggest short/issuers were JPMorgan Chase in its in-house [proprietary] trading account, with 6,633 of those contracts…and in distant second was the Bank of Nova Scotia with 910 contracts.On the long/stopper side of the ledger was Deutsche Bank in its proprietary [in-house] trading account with 3,181 contracts…and HSBC USA with 2,529 contracts stopped.  Also involved as long/stoppers, but with much smaller amounts, were Goldman Sachs, Morgan Stanley…and JPMorgan Chase in its client account.Not surprisingly, there were only 65 silver contracts posted for delivery on Friday…and it was all Jefferies and the Bank of Nova Scotia as short/issuers…and JPMorgan as basically the only long/stopper.The link to yesterday’s Issuers and Stoppers Report is a must to view…and the link is here.As a recap for January…a traditional non-delivery month for both gold and silver…there were 1,063 gold contracts delivered…and 724 in silver.  The gold number isn’t all that significant, but the silver number is huge in the grand scheme of things.  In the ‘old days’…according to Ted Butler…there might be thirty or forty silver contracts delivered in a non-delivery month.There were no reported changes in either GLD or SLV…at least not as of 11:06 p.m. Eastern time Wednesday evening.Over at Switzerland’s Zürcher Kantonalbank as of January 29th, they reported that 31,023 troy ounces of gold, along with 969,024 troy ounces of silver were withdrawn from these two precious metal ETFs since they last reported on January 23rd.The U.S. Mint had another sales report yesterday…with a twist.  They sold another 10,000 ounces of gold eagles, but no silver eagles.  The gold buffalo sales went from 72,000 sold in January…all the way down to 500.  It’s a good bet that whoever did the sales data entry at the mint yesterday will correct that error sometime today…and I’ll have the final sales figures for January in tomorrow’s column.There was more activity over at the Comex-approved depositories on Tuesday.  They reported receiving 1,114,350 troy ounces of silver…and shipped 188,545 ounces of the stuff out the door.  The link to that activity is here.Here are a couple of charts that Nick Laird sent our way last night…and I’m more than happy to post them here.  Note the record silver eagle sales in January 2013…and the big sales in January 2012…and again in January of 2011.  In all three Januarys, it was December sales being cannibalized in one form or another that caused the big spikes in January sales in those years…because if you go back further, there is little difference between December and January sales.(Click on image to enlarge)(Click on image to enlarge)Here’s some data that reader ‘David in California’ stole from Bill Murphy’s MIDAS commentary over at his lemetrolpolecafe.com Internet site yesterday afternoon.  It’s not like we need to be reminded of this fact.(Click on image to enlarge)I have the usual number of stories for a mid-week column and, as always, I’ll leave the final edit up to you.Clearly, there is no total valuation concern in silver. If anything, the current near microscopic total valuation of all the world’s silver bullion argues that something is amiss. Even if silver tripled in price while gold’s price remained unchanged, the entire world’s silver bullion (1,000 oz. bars) would still be worth only one percent of all the gold in the world. I think the relative total valuation benchmarks not only favor silver compared to gold, but also suggest that any future price bubble will most likely appear in silver rather than gold. – Silver analyst Ted Butler…30 January 2013Well, you don’t need a degree in rocket science to know that the powers that be were lying in wait for the release of yesterday’s U.S. GDP numbers…and they were there to crush the precious metals and their shares at their first opportunity.  If they hadn’t been, yesterday’s price activity in both gold and silver would be a far different tale at this juncture.However, a quick peek at the preliminary volume/open interest numbers for yesterday only showed a small increase in gold…but it was far more substantial in silver.  But I’ve learned that you can be easily lead astray by these numbers.  Conveniently, this price run-up happened on a Wednesday…the day after the cut-off for tomorrow’s Commitment of Traders Report…so we won’t have any inkling of what happened yesterday until next Friday, which is a lifetime away in these markets.Here are the 6-month charts for both silver and gold with yesterday’s price action included.  We broke above…and closed above gold’s 200-day moving average yesterday.  And we broke above…and closed above silver’s 50-day moving average.  As you know, JPMorgan et al can paint a chart with the best of them…and only the brain-dead technical funds are stupid enough to believe chart patterns in a rigged market…but such idiots still exist.(Click on image to enlarge)(Click on image to enlarge)Where we got from here price-wise is anyone’s guess…but based on what I saw yesterday, these rallies are going to end the same way as every other rally, because “da boyz’ are going short against all comers.  We shall find out soon enough.The next newsworthy event are the job numbers at 8:30 a.m. Eastern time tomorrow…and you always get a ‘reaction’ from both gold and silver…you can set your watch by it.  I’m already wondering how hard they’ll hit the prices when the numbers are announced.  We shall find out soon enough.Here’s a very interesting pictorial that reader Oto Godfrey sent me yesterday…and you’ll need to use the ‘click to enlarge’ feature to do it justice.  It’s worth a minute of your time.Precious metal prices were dead in overseas markets on their Thursday…at least they were going into the 8:00 a.m. GMT London open.  Volumes were very light…with gold now trading in the new front month…April.  Pretty soon the roll-overs out of the March silver contract will begin…and the countdown to the March first day notice in silver will begin as well.  The dollar index is comatose.  And as I hit the ‘send’ button a couple of hours later…at 4:44 a.m. Eastern time, nothing much has changed, volumes are still light, the dollar is still comatose…and gold and silver prices are basically back to unchanged from Wednesday’s close.I’m not expecting big price action in New York today.  But I wasn’t expecting big price action yesterday, either…so who really knows.  And as I mentioned above, the next news that will ‘move’ gold is tomorrow’s job numbers.  But at this stage of the game, the enivitable black swan will glide in from somewhere out in left field…and things will get interesting.If you’re reading this column just west of the dateline, enjoy your upcoming weekend…and I’ll see you here on Saturday…and if you live anywhere else on Planet Earth, I’ll see you on Friday.center_img Uranium Energy Corp. (NYSE MKT: UEC) is pleased to announce that the final authorization has been granted for production at its Goliad ISR Project in South Texas.  As announced in previous press releases, the Company received all of the required authorizations from the Texas Commission on Environmental Quality, including an Aquifer Exemption which has now been granted concurrence from EPA Region 6.Amir Adnani, President and CEO, stated, “We are very pleased to have received this final authorization for initiating production at Goliad. Our geological and engineering teams have worked diligently toward achieving this major milestone and are to be truly commended. We are grateful to the EPA for its thorough reviews and for issuing this final concurrence. The Company’s near-term plan is to complete construction at the first production area at Goliad and to greatly increase the throughput of uranium at our centralized Hobson processing plant.” Please contact Investor Relations with questions or to request additional information, info@uraniumenergy.com.last_img

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