I have a small warning here for the COMEX stock.
I predicted that the total gold stock would come down here. That's because I saw a very high surge in registered gold from J.P. Morgan's vault. And several months later the total gold stock hit new lows (Chart 1).
There is a tight gold market right now, as we see lease rates go above 0%. GOFO rates are still at record lows and premiums are highest ever. APMEX premium on silver coins just went to the highest level on Friday, namely 18%.
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| Chart 1: COMEX gold |
A new thing has happened now in the silver COMEX stock. For the first time this year, we see the eligible silver stock go down. I also see that the registered silver went up, probably the same that has happened with gold. So I expect that total silver will now start to go down and we will see tightness in the silver market. We also see that the commercial shorts have finally covered their shorts.
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| Chart 2: COMEX silver |
There is no "tightness" in the gold market. Investors sold 106.2 metric tons valued at $5.4 billion from exchange-traded products in February, say Bloomberg, while the price of gold dropped to $1,584/oz today, and will continue to fall as the economic situation improves.
BeantwoordenVerwijderenIf the economy is so healthy, why is Ben printing money?
VerwijderenThe Fed is printing money because the level of bank lending is low, but investors expect the Fed will stop in the future. Investors expect that the economic situation is improving, so they selling gold because they expectother assets will appreciate faster as well as produce income in the future.
BeantwoordenVerwijderenLet's see if the Fed will stop printing in 2014. I bet they will keep on printing.
VerwijderenThe Fed will never stop printing money, as it continiously engaged in open market operations in order to ensure there is adequate liquidity in the money markets.
BeantwoordenVerwijderen