Jim’s Mailbox

Posted at 10:11 AM (CST) by & filed under Jim's Mailbox.


Change is in the air.

JB Slear



Hello Jim!

Your post earlier today about some major producers putting on hedges has made me a little nervous. Your comments indicate you’re not too concerned. Would you mind elaborating please?

I got into the gold market some 11 years or so ago when I started following your website in large part because a lot of the big mining companies were starting to unwind their hedge books. I don’t know how widespread this sentiment is among the mining community, but if many producers put their hedges back on, what’s this going to do to the POG?

Thanks for your time and trouble.

Kind regards,
CIGA Brady

Dear CIGA Brady,

Gold went from $248 to $1100 with every mining company hedging like mad before the mining companies lost billions on that stupid move.

If the major jerks do it again they will go to the cleaners again before the summer of 2014.

Some majors seem as if they are doing their best to become juniors. Some juniors are going to pass the majors going in the other direction.



We should make him a CIGA. He’s hanging in there. Like yourself, there’s just no denying.

Events precede outcome. Just know your events!

CIGA Wolfgang Rech


What makes you think he is not?


Paulson: Drop in gold doesn’t worry me
By Jeff Cox | CNBC

Legendary hedge fund manager John Paulson remains undaunted by the huge plunge in gold, maintaining that the case for owning the yellow metal remains strong.

Perhaps no name has been as synonymous with gold’s woes as Paulson, who made his reputation by shorting subprime mortgages prior to the financial crisis unfolding in 2008 and 2009.

Since then, his star has dimmed as a big play he made in gold has gone sour. An expected surge in inflation still hasn’t happened, and many investors have bailed as the price has fallen.

Speaking at the Delivering Alpha conferenc e presented by CNBC and Institutional Investor, Paulson said betting that the Federal Reserve’s quantitative easing programs would spike inflation hasn’t paid off-yet.



In what will be his LAST semi-annual performance before Congress, Ben ‘outgoing-Chairman’ of the Fed spoke today.

Again, as usual, it is prudent to ignore both ‘whatever it was he seemed to say’ along with all the interpretations of ‘whatever it was he seeed to say’ and observe that both sides of the table did their best to emulate Sgt. Schulz ("I know nothing, I see nothing, I hear nothing") of Hogan’s Heroes fame.

Americans should be so lucky as to have some kabuki theater, but instead they get a rehash of an old sitcom. Fitting.

Capping and then sharply reversing the rise in precious metals (‘coincidentally’ at the moment Ben began to speak) with another classic "paper raid" by the wiseguys, it IS worth noting that with COMEX inventories at historic low levels, and a delivery month fast approaching (August) with CRIMEX expiry for both Gold and Silver on Thursday 7/25… IT IS TIME TO SHAKE SOME PHYSICAL ‘LOOSE’ FROM THE ETF-TREES TO AVOID A DEFAULT.


clip_image001[1] clip_image003 clip_image004 clip_image005


Now we’re down to simple, outright fabrications !

What’s the old saw by Mark Twain? There are Lies, there are Damn Lies, then there are Statistics.

From Zero Hedge:

Based on the following quotes just uttered by the Chairman…


… Bernanke’s next career as a sit-down comedian smash hit is guaranteed.

CIGA Wolfgang Rech




It is what it is. That should be the Fed Mantra. Not the wishy washy gibberish coming from Ben. If a bubble is of concern, then say so!

I understand that no one wants to create market disruptions, but at least give the public some direction.

All we hear is “we will tighten, unless we don’t”

The world must be laughing at us.  To have a Fed Chairman not owning up to what he must do.

Ben makes our financial markets into a cat and mouse game.

We’re all adults, seeking direction so we can plan our future and prepare for their policy decisions.

This BS can be spouted by his secretary.  We don’t need a Fed Chairman who tells us nothing.

It’s become a world of guessing games for the general public.

CIGA Wolfgang Rech

Bernanke: Bond Tapering to Begin Later This Year, but Plan Not Preset

Reuters Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank still expects to start scaling back its massive asset purchase program later this year, but left open the option of changing that plan in either direction if the economic outlook shifted.


No kidding Dick Tracy!  Every schoolboy knows that. Tell us something useful.