Jim’s Mailbox

Posted at 7:32 PM (CST) by & filed under Jim's Mailbox.

This statement is very interesting: If you had a group of 100 people in the world who all claimed to own gold and you told everyone that owned ETF’s and gold futures contracts to sit down, there would only be 8 people left standing.
–CIGA Larry & Mike

 

Jim,

Here is a sign in Lakewood, Ohio.

Have a Happy 4th in the "New Normal"!

CIGA Jim

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Jim,

Yra Harris lays out the costs of abuse of power. We see the groundwork being laid for this going beyond a "currency war" and seem to be forcing Germany into the waiting arms of Russia and China.

CIGA EOB

Notes From Underground: German PMI Was Lower …. Did NSA Have The Number Early?

It wouldn’t be Notes From Underground if we didn’t ask the most obvious and ridiculous question. It may be the subject of global comedians but the NSA‘s overreach is not a laughing matter for what it really shows is that in the guise of National Security, even a democratic republic leans toward political repression. This is similar to the McCarthyism that grew from what Michael Parenti called “the Anti-Communist Impulse.” Everything becomes an excuse for the government to pry  and the danger for all lovers of freedom is that once governments delve into every nook and cranny of life, the end result is always disastrous. It is not about Democrat or Republican for the Democrats will not always be in office.

From a global macro perspective, the U.S. has lost the moral high ground and will find it difficult to lecture others on various areas of global concern. Last month, Treasury Secretary Jack Lew was preaching to the Germans on the need to ease up on austerity. Last week, President Obama was giving a speech at the Brandenburg Gate. How would that speech be received today? If the G-8 wasn’t a joke before, doesn’t the extensive invasion of privacy make those ultra-expensive photo-ops become meaningless when you already know everybody’s pre-conference policies? In the Der Spiegel article, “The documents show that the NSA is more active in Germany than any other country.”

And to make matters more pertinent to the global macro perspective, one of my favorite European Parliament members, and a French icon from May 1968, laid it out: “The EU must immediately suspend negotiations with the U.S. over a free-trade agreement.”Last month, the U.S. administration was pointing to the U.S.-European Free Trade Agreement as a corner-post of its growth agenda. There are real costs to the abuse of power. It sends a message of arrogance, whether or not everyone is doing it.

***The Thursday BLOG called the shift in silver/gold and a possible low in GOLD based on the analysis of the GOLD/YUAN cross and its relevance to the important level of the IMF gold sale to India. I had looked at the IMF GOLD sale at $1048 as important but realized that maybe the price in terms of the Chinese that price may be more critical. The price level was 7150 YUAN and on Thursday night  we hit a low of 7220 YUAN to an ounce of GOLD and it provided momentary support. This will be an important level in my opinion–we will keep a close watch on this.

At the same time, the silver held and set the course for the Friday rally, which was followed upon today. Can’t say that this is the end of the GOLD selloff but it is certainly something to watch. The other GOLD/CURRENCY crosses look terrible on the charts but better technicians may find longer term support levels on the GOLD/SWISS, GOLD/EURO and certainly the GOLD/YEN.

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Jim,

And away we goooooooooooo!

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CIGA Wolfgang Rech

World’s first Physical Gold, Silver Exchange starts in Singapore
SINGAPORE July 03 2013 6:02 PM

SINGAPORE (Scrap Register): Singapore Precious Metals Exchange (SGPMX) has launched the world’s first physical precious metals exchange with peer-to-peer bullion trading capabilities integrated into the trading platform in Singapore on Wednesday, amid Singapore’s drive to encourage gold trading in the country.

As part of the launch, SGPMX also announced the entry into an MOU with Certis CISCO which will act as the custodian for bullion storage.

Certis CISCO has been providing secure and trusted storage of precious metals for renowned banks and international couriers since 1986. Storage with Certis CISCO will enable SGPMX to provide the platform for private individuals, traders and institutions to buy, sell, store and exchange precious metals including gold and silver bullion, without incurring high spread margins.

The exchange allows traders to buy and sell precious metals securely and conveniently, supporting real-time transactions with internationally recognised mints. This addresses private investors’ issues with liquidity, and also eliminates the costs of assaying precious metals when traders purchase or sell the holdings.

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