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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: Ed Steer this morning
Silver Up $1.34... With Much More to Come... Unless 'da Boyz' Show Up
Nov
19
Delta-Hedging to Cause Gold Price to Explode: James Turk. This is Late 1979, Gold Will Rise Violently: Jim Sinclair. Silver-Coin Sales May Surge 50% as Demand Rises, Canada Says. Mints cash in on surging silver coin sales... and much more.
Yesterday in Gold and Silver
Gold rose strongly in Far East and early London trading on Thursday... but shortly after 9:00 a.m. in London [4:00 a.m. in New York], gold pretty much topped out for the day... and traded sideways or down for the rest of the trading day in both London... and then in New York. However, it managed to tack on about $18 on top of Wednesday's closing price.
Silver was the absolute star of the day yesterday... finishing up $1.34 from Wednesday's close... 5.22%. That's the first time in 30 years that silver has gained more than a dollar in one 24-hour trading period. Expect more of this kind of action as we move forward in this ongoing bull market in silver.
Just eye-balling the 3-day dollar chart, I'd guess that the 'value' of the world's reserve currency fell about 45 basis points during the Thursday trading session... with a 40 point intraday bounce between its 8:30 a.m. low and 11:00 a.m. Eastern time... which there was no hint of on the gold chart. I'd say that there was a general relationship between the dollar and the gold price yesterday... but that's all.
The gold stocks gapped up... and stayed up all day long, but did give back about one percent of their gains, as the gold price softened as the day wore on in New York. And, as one would suspect, the silver stocks were on fire all day long on Thursday... and most were up several [to many] orders of magnitude more than their golden cousins. That's why my investment portfolio is 60/40 silver/gold... and that ratio is heading to 70/30... as the silver stocks prices continue to outperform. But I'm not an investment advisor.
The CME Delivery Report was quiet once again, with exactly one [1] gold and 49 silver contracts posted for delivery on Monday. The action is linked here. I mention these numbers for two reasons today; firstly, I haven't seen JPMorgan trading for its proprietary [house] account in more than a week now... and it appears that Prudential and the Bank of Nova Scotia are the only firms left trading in their proprietary accounts. The second thing I want to mention is the 841 silver contracts that have already been posted for delivery this month. That's 4.2 million ounces, and that's only for deliveries up until Monday, November 22nd. That's a lot, considering the fact that November is not a traditional delivery month for silver.
I also want to point out one more time, that all this silver [and gold] that's posted for delivery on the CME's website every day, never leaves the Comex warehouses. All that happens is that the bars change ownership on the racks at each of the four remaining Comex-approved depositories. The Comex delivery report [below] shows the actual physical metal that's coming in, or leaving, the exchange.
The GLD reported a withdrawal yesterday... 146,482 ounces. There were no changes at SLV... and the U.S. Mint had no sales report either.
Over at the Comex-approved depositories, a net 409,240 ounces of silver were withdrawn from their collective inventories on Wednesday. There was activity in all four warehouses... and the link to that action is here.
A couple of days ago, I ran the chart below that was provided by Nick Laird over at sharelnyx.com. Here it is again... updated as of the close of trading yesterday. As I mentioned when I posted it on Wednesday, I wasn't sure whether it was going to break to the upside... or downside. Now we know.
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¤ Critical Reads
SubscribeThe Saturated Sponge
I'm going to start my stories today with commentary from Murray Pollitt of Pollitt and Co. in Toronto. As I've said a few times before, Murray is the Richard Russell of the Canadian mining industry... and anything he has to say is worth the read. His commentary, headlined "The Saturated Sponge", is imbedded in a GATA release linked here.
Dear Uncle Sucker...
In my column yesterday, I ran that disgusting thank you letter from Warren Buffett to Uncle Sam that was headlined "Pretty Good for Government Work". Well, Barry Ritholtz over at ritholtz.com couldn't let that letter pass without comment. His rebuttal is headlined "Dear Uncle Sucker...". Reader Phil Barlett was kind enough to send it along yesterday... and the link is here.
Manchester United Player Of The Century Eric Cantona Appeals For Peaceful Revolution Against Banks, Calls For Europeans To Pull Their Money
Here's a "We, The People..." story out of Europe that would have made the U.S. founding fathers proud. I'm not even going to try and describe it, as the title of the article posted over at zerohedge.com helps... but the introduction to the article says it all. The very long headline reads "Manchester United Player Of The Century Eric Cantona Appeals For Peaceful Revolution Against Banks, Calls For Europeans To Pull Their Money". I thank reader 'David in California' for sharing it with us... and the link is here.
European Central Bank tightens screw on Ireland, Portugal and Spain
Reader Roy Stephens sent along the following story that was filed late last night from The Telegraph in London. The PIIGS are back in the news... and all in the same story. Ambrose Evans-Pritchard headlines this piece "European Central Bank tightens screw on Ireland, Portugal and Spain". The photo of ECB President Jean Claude Trichet praying is very apropos. This is a highly recommended read... and the link is here.
Silver-Coin Sales May Surge 50% as Demand Rises, Canada Says
The rest of today's offerings are all precious metals-related in one form or another. The first is another offering from 'David in California'. This is a Bloomberg piece headlined "Silver-Coin Sales May Surge 50% as Demand Rises, Canada Says". It's only a handful of paragraphs... and certainly worth your time. The link is here.
Mints cash in on surging silver coin sales
There was also a story about silver coin demand in Thursday's edition of London's Financial Times, but it's subscriber protected. I'll quote a couple of paragraphs from the article that's headlined "Mints cash in on surging silver coin sales"... "The world’s top mints have seen their silver coin sales jump to record or near-record levels, and they and coin dealers are working overtime to meet the surge in demand from investors. “The phones are ringing off the hook,” said Jonathan Potts, managing director of FideliTrade, a US coin dealership that is one of a few authorised to buy silver American Eagles directly from the US Mint." I thank Washington state reader S.A. for this story.
High prices be damned, gold buying spurts in India
Here's a story courtesy of reader U.D. It's a posting over at mineweb.com that was filed from Mumbai. With gold-backed loans on the rise and rural India enjoying the fruits of a bumper monsoon, farmers are stashing away their savings in gold and precious metals. This is a longish read that's headlined "High prices be damned, gold buying spurts in India"... and the link is here.
Gold May Advance to Record, Barclays Says: Technical Analysis
The next item is a Bloomberg article that's courtesy of reader Scott Pluschau. The headline reads "Gold May Advance to Record, Barclays Says: Technical Analysis"... “Strategically, we are bullish,” the bank said. The story is a handful of short paragraphs... and the link is here.
Delta-Hedging to Cause Gold Price to Explode
My last two stories were both GATA dispatches last night. Both are blogs posted over at King World News. GoldMoney founder James Turk told Eric King that the price suppressors are being overrun by physical demand in the gold and silver markets... and gold's strength, despite an imminent options expiry, is an important sign. Excerpts from King's interview with Turk are headlined "Delta-Hedging to Cause Gold Price to Explode" and the blog is linked here... and I would suggest you read this.
This is Late 1979, Gold Will Rise Violently
The second King World News blog is with gold entrepreneur Jim Sinclair. He says that the gold market feels as if it will rise violently with any excuse. Excerpts from the interview are headlined "This is Late 1979, Gold Will Rise Violently" and the link is here. I suggest you read this as well.
¤ The Wrap
Considering the price movements recently, it's obvious that volume figures for both gold and silver aren't going to decline any time soon. Thursday's activity in gold was no exception, with volume over 200,000 net of all roll-overs once again. Silver's volume was down to 'only' 75,000 contracts traded on a net basis... which wasn't a lot considering the big price move.
As of 4:50 a.m. Eastern time, gold is up about eight bucks... and silver is up 34 cents. Volume is decent... and about the same as yesterday at this time.
Today at 3:30 p.m. Eastern time [sharp]... the latest Commitment of Traders report [for positions held at the close of trading on November 16th. This is an important report... and I'll certainly have something to say about it in my Saturday column... plus I'll steal anything from Ted Butler's weekly commentary that I think that I can get away with, as well.
Before closing, here's an offer that Casey Research had last year around Christmas. It's our second annual Heirloom 24K holiday jewelry campaign. First Collector’s Guild is now offering only one style of24-K gold necklace, bracelet and anklet - the Bhat design. In order to arrive before Christmas, you have to order [by phone] on or before December 10th. You can check out all the details by clicking here.
I hope you have a wonderful weekend... and I'll see you here tomorrow morning.
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