In The News Today

Posted at 4:19 PM (CST) by & filed under In The News.

Our system is so stinkin’ corrupt that we owe Sodom and Gomorrah an apology.
–Dan Norcini, 2009

Jim Sinclair’s Commentary

What being in the system looks like after capital controls come into play.



Jim Sinclair’s Commentary

Who broke the bank? The bank of course.

Cypriots Want To Know Why Their Money Was Spent Buying Greek Bonds
Reuters | Apr. 30, 2013, 6:39 AM

NICOSIA (Reuters) – One day last October, a memory stick containing special software for deleting data was placed into a desktop computer at Bank of Cyprus.

Within minutes, 28,000 files were erased, according to investigators who had wanted to copy the data for an official report into the collapse of the Cypriot banking system.

The deleted files included emails sent and received in a crucial period in late 2009 and early 2010 when Bank of Cyprus, the biggest lender on the island, spent billions of euros buying Greek bonds – at a time when international banks were cutting exposure to the heavily indebted Athens government.

Those Greek bonds lost most of their value in last year’s EU-sanctioned bailout, playing a key role in plunging Cyprus into an economic maelstrom. When banks turned to Cyprus’s own cash-strapped government for help in plugging holes in their balance sheets, Nicosia too needed an international rescue.

Now people in the small euro zone republic, who have lost money and face years of grim austerity, want to know who decided to plough their savings into the doomed public accounts of their bigger neighbor, and why. But answers are proving elusive, not helped by the mysterious wiping of data at Bank of Cyprus.


When I despair, I remember that all through history the way of truth and love have always won. There have been tyrants and murderers, and for a time, they can seem invincible, but in the end, they always fall. Think of it–always.
–Mahatma Ghandi

Jim Sinclair’s Commentary

The paper market tried today, but all that any downward pressure can do is to push gold prices directly into the huge physical bull market internationally.

"In Turkey, the fourth-biggest gold consumer last year, bullion on the Istanbul Gold Exchange traded at premiums of as much as $25 an ounce over the London spot price, something that hasn’t happened in “a very long time, we’re talking years,” said MKS’s Panizzutti.”

Gold Rush From Dubai to Turkey Saps Supply as Premiums Jump
By Glenys Sim – Apr 30, 2013 9:26 AM GMT-0300

Premiums paid by wholesalers and bulk buyers in Dubai to secure a 1 kilogram bar of bullion are being quoted between $6 an ounce and $9 an ounce over the London cash price, said Frederic Panizzutti, global head of marketing and sales at the Swiss-based bullion refiner. That compares with about 50 cents before the rout, Panizzutti, also chief executive officer of MKS Precious Metals DMCC, said in an interview from Dubai.

Gold fell to the lowest in more than two years this month on speculation that the global economy is recovering, unleashing a purchasing frenzy among coin and jewelry buyers from China to the U.S. Consumer demand for jewelry, bars and coins in Turkey and the Middle East represented about 9.4 percent of the global total last year, according to the World Gold Council. Bars have been cleared from display in the souks, according to Gerry Schubert, head of precious metals at Emirates NBD PJSC.

“Physical demand has been tremendous in a way I haven’t seen for a number of years,” said Jeffrey Rhodes, global head of precious metals at INTL FCStone Inc., who’s worked in the industry for more than three decades. “The price collapse prompted a physical gold rush and the evidence of the extent of that is the prolonged period of high premiums that we’ve seen. Reports from the gold souks are that business is good,” Rhodes said from Dubai.



Jim Sinclair’s Commentary

Courtesy of CIGA David MadisonStyle.

Just because gold at JP Morgan drops significantly does not mean that even one ounce of the physical was sold. Consider this please.

Dwindling U.S. gold stocks signal surge in physical demand
Mon Apr 29, 2013 11:22pm EDT
By Frank Tang

* COMEX stocks down 30 pct since Feb, accelerated last week
* Growing preference for physical bars, coins after selloff
* Higher premium in non-U.S. markets triggers bullion outflow

NEW YORK, April 29 (Reuters) – Physical gold stocks held at CME Group’s Comex warehouses in New York have dropped to a near-five year low in a further sign that gold’s price crash unleashed a frenzy of demand as investors scramble to buy bars and coins.

U.S. gold stocks, comprised of 100-troy ounce COMEX gold bars, have fallen almost 30 percent since February, as dealers have switched to selling into the burgeoning Asian market, where prices and demand are higher than in New York.

But the pace of the outflows from vaults has accelerated since bullion’s historic sell-off, falling more than 7 percent last week for its biggest weekly drop since 2005.

Analysts say the sudden recent surge is further evidence of pent-up demand for coins and bar, particularly from China and India, caused by the slump in prices. Investors also appear to prefer to hold physical metal rather than futures, traders said.

"Some investors feel much safer having gold within their reach and their hands," said Jonathan Potts, managing director of Delaware Depository, a CME-approved silver warehouse which also holds gold and other precious metals for investors.


Jim Sinclair’s Commentary

It is all about QE in equities. In gold it all about the consequences of QE.



Jim Sinclair’s Commentary

No bats, no bees, no food. Courtesy of CIGA Christopher.

Europe Bans Pesticides In Move To Protect Honey Bees
April 29, 2013 4:40 PM

Three popular pesticides will soon be illegal in the European Union, where officials hope the change helps restore populations of honey bees, vital to crop production, to healthy levels. The new ban will be enacted in December.

"I pledge to do my utmost to ensure that our bees, which are so vital to our ecosystem and contribute over €22 billion ($28.8 billion) annually to European agriculture, are protected," said .

Two European producers of the banned pesticides, Bayer of Germany and Sygenta of Switzerland, have said their products aren’t to blame for the bees’ decline. Called neonicotinoids, the pesticides will no longer be approved for use in European crops that include corn, rapeseed, and cotton.

Earlier this year, a found that the pesticides — clothianidin, imidacloprid and thiametoxam — presented a risk to bees when they are exposed to the dust, pollen, or nectar of some treated crops.

In the U.S., a group of environmentalists and beekeepers have sued the Environmental Protection Agency to stop the use of two of the pesticides, as NPR’s Dan Charles .

The pesticides are "used to coat the seeds of many agricultural crops, including the biggest crop of all: corn," Dan reported. "Neonics, as they’re called, protect those crops from insect pests."


Perth Mint Works Through Weekend on Highest Demand Since ’08
By Editors: Jake Lloyd-Smith – Apr 30, 2013 5:14 AM ET

Australia’s Perth Mint, which refines nearly all of the nation’s bullion, said that demand has jumped to the highest level in five years after prices plunged, with the factory kept open through the weekend to meet orders.

There’s been strong interest, including from the U.S., with buyers speculating that the metal will rebound from the decline, Ron Currie, sales and marketing director, said in a phone interview from Perth.

Bullion plunged 14 percent in the two sessions to April 15, the most since 1983, spurring buyers to boost physical holdings. Billionaire John Paulson, the biggest investor in the largest exchange-traded product backed by bullion, reiterated his bullish view on prices. Coin sales by the U.S. Mint are set for the highest month since December 2009, while premiums to secure supplies in India rose to five times the level before the slump.

“We haven’t seen levels like this since the 2008 global financial crisis,” Currie said yesterday. “Compared to March sales, April sales have doubled or tripled,” he said, without providing figures.

Gold for immediate delivery fell 0.4 percent to $1,470.42 an ounce at 5:13 p.m. in Singapore. While prices have gained 11 percent from a two-year low on April 16, they are still heading for the biggest monthly loss since December 2011.


Jim Sinclair’s Commentary

Somebody has to be there now for all of us. Financial events can occur that are earth shaking, yet might not appear in the news the day of the event, or at all.



The Monarchs of Money
The world’s central banks have printed unimaginable amounts of money in recent years. Neil Macdonald explores what this means for the global economy and for your financial well-being.

Jim Sinclair’s Commentary

After almost a total news blackout of the "Final Cyprus Solution," the following was one the first stories in North America. You might wish to print this story out and keep it pinned on your bulletin board.

As the first story after a blackout, you can be sure that Bail-Ins are coming to your home town soon. Get out of the system while you can or get your very own "Final Solution."

ECB member Honohan says Cyprus bailout not a template
6:08 a.m. CDT, April 30, 2013

DUBLIN (Reuters) – The treatment of deposit holders during the bailout of Cyprus is not something that will be repeated, Irish Central bank governor and European Central Bank governing council member Patrick Honohan said on Tuesday.

"I think what happened in Cyprus certainly will not happen in any other country. It was certainly an unusual process that we observed," said Honohan when asked by a journalist if the "raiding" of savers in Cyprus might be repeated.

Asked if he was happy with how the bailout of Cyprus was handled, Honohan said: "I would have done (things) differently myself."

(Reporting by Conor Humphries; Editing by John Stonestreet)


‘There will be more wealth confiscation, without a doubt’
Savers and investors face further "wealth confiscation" in Europe as the continent struggles to resolve the single currency’s problems, a bank chief has said.
By Richard Evans
11:35AM BST 30 Apr 2013

European politicians will take the "easy option" of taking money from the rich rather than raising taxes and cutting spending to deal with the continent’s debt problem, Lars Christensen, the head of Saxo Bank, said.

Asked if the raid on uninsured savings in Cyprus would be repeated, he told City AM: "There will be future bail-ins [loss of deposits] and other types of confiscation of wealth in the eurozone, without a doubt.

"There’s no other realistic way forward if politicians continue to fail to deal with the basic indebtedness problem across Europe. They will either have to raise taxes and cut spending, or politicians will take the easier route and take money from the rich."

Earlier this week savers at Bank of Cyprus saw 37.5pc of their balances above €100,000 converted into shares, with a further 22.5pc at risk and 30pc frozen.


Jim Sinclair’s Commentary

If the paper market tries to depreciate gold it will send it directly into the physical demand that will move up over time.

Lest you forgot.

Gold buyers forced to go on waiting list
Gold buyers are having to wait up to six weeks for their bars and coins after a price dip led to increased interest.
By Rosie Murray-West
3:55PM BST 30 Apr 2013

Investment company Physical Gold said there were waiting lists of three weeks for some coins, and four to six weeks for gold bars. "Previously all would have been available within a few days," the company said.

The company said that it had seen a 50pc increase in enquiries about purchasing gold and a 35pc increase in sales, with people buying tax-free gold coins. "We are now starting to experience physical gold shortages," said Daniel Fisher, CEO of Physical Gold.

"In particular there are waiting times on some gold bars and a real difficulty in obtaining mixed year Sovereigns. "However, many clients are willing to ‘do a deal’ and wait for delivery as they want to secure the current price as they feel it will be higher in the near future."

Gold prices have fallen significantly recently, which may have created some demand. Mr Fisher said his clients had been "waiting in the wings" for the current price adjustment. "Clients who have been ready to pounce have now bought as they realise they are getting good value and the environment for gold is still strong. There are still few decent alternatives to gold as a safe haven asset."


Jim Sinclair’s Commentary

Courtesy of CIGA David

If paper gold makes another attempt to depreciate the gold price, physical buying is going to step up in price to meet it.

CME President on Gold: “They Don’t Want Certificates, They Want the Real Product”
By Michael Krieger

What’s interesting about gold, when we had that big break two weeks ago we saw all the gold stocks trade down significantly, we saw all the gold products trade down significantly, but one thing that did not trade down, was gold coins, tangible real  gold.  That’s going to show you, people don’t want certificates, they don’t want anything else.  They want the real product.

– Terrence Duffy, President and Executive Chairman of CME Group Inc,. on Bloomberg TV yesterday (April 29, 2013)

I’m actually still in a state of shock that the head of the CME Group would make such an observation and in such blunt terms.  I mean the guy admits that volume on his exchanges suck, yet basically claims paper gold (on of their marquee products) is becoming irrelevant.  In my mind there are two likely explanations for this.  1) This is how he has started to feel personally and he is loading up on physical gold rather than his company’s paper products and would like some cover if that is ever unearthed. 2) This is what people close to the gold market are telling him and he’d rather make it clear he understands that paper is paper and gold is gold and that there is a big difference.  So "caveat emptor" if you are hanging around the COMEX.

His comments on gold come in at the 0:40 mark.  Simply stunning.




Jim Sinclair’s Commentary

Get out of the system while you still can without much hassle.

Here is the most recent from the State of Connecticut. The doors are closing and capital controls certain to come are the final slam after which your freedom to exit is finished.

From the Connecticut General Assembly website:


To require precious metals or stones dealers to provide a periodic statement of transactions in an electronic format to the local licensing authority and retain any goods purchased for at least ten days, and to make the requirements applicable to precious metals or stones dealers similar to those applicable to secondhand dealers.

For bullion and coin sales, in addition to the requirements under current law, the bill requires dealers to keep the record in English, be consecutively numbered, and include the seller’s general description.