In The News Today

Posted at 10:39 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

An excellent article by Ronan Manly. “Transparency” will not just destroy the paper gold markets but the entire system as we know it!

LBMA Needs Reform To Serve The Physical Precious Metals Market
October 8, 2019

Among the wider precious metals community, it would be fair to say that the London Bullion Market Association (LBMA) has always been looked upon with a degree of suspicion. The reasons for the suspicion include:

    That the LBMA banks created and unleashed on to the world the concept of fractional-reserve bullion banking, unallocated precious metal accounts, and synthetic cash-settled paper gold products unbacked or fractionally-backed by physical metal.

    That the founding members of the LBMA were a group of powerful bullion banks and brokers.

    That the LBMA was founded “at the behest” of the Bank of England.

    That the LBMA operates at the nexus of secretive central bank gold lending transactions where transparency is, to say the least, non-existent.

All of these reasons would be valid concerns, but they are not getting to the heart of the issue. The heart of the issue is that the LBMA does not represent the physical gold and silver markets nor does it champion the interests of physical precious metals savers and investors.

Rather, the LBMA promotes and protects and paper gold and silver markets and works on behalf of the bullion banks which operate and control these derivative paper markets through OTC precious metals trading, the London daily price fixings, and COMEX precious metals futures trading. All the while the LBMA with a straight face claims to be the “

” and ““. A global authority appointed by who you might ask? Well, the banks of course!

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J. Johnson’s Latest – Politics And Governments Shutting Down Is Nothing To Worry About (Until?)
October 9, 2019

Great and Wonderful Wednesday Morning Folks,   

      Gold is trading higher but not like earlier with the right now price at $1,507.20, up $3.30 after reaching $1,516.90 with the low close by at $1,505.10. Silver lead the charge and may be leading the calm with the trade at $17.835, up 13.5 cents with the low at $17.72 after hitting $18 before the story about China agreeing again, and again, and again, hit the tape. The US Dollar is stagnated with the trade at 98.745, down 7.7 points with the high at 98.865 and the low at 98.595. All this was done before 5 am pst, the Comex open, and the London close.    

      In our emerging markets currency watch we see a pullback in Gold’s prices but a good strong rally in Silver. In Venezuela, Gold is now priced at 15,053.16 Bolivar proving a reduction of 31.96 in value with Silver at 178.127 giving Silver a 0.703 Bolivar gain. In Argentina, Gold is now priced at 87,188.98 Pesos, it too losing 167.22 Pesos with Silver at 1,031.73 Pesos, a gain of 13.62. The Turkish Lira now has Gold priced at 8,791.26 Lira showing a loss of 25.32 with Silver at 104.017 showing a gain of 1.268 in T-Lira value.    

      October Silver Deliveries now show a request count of 343 fully paid for demands for physical and with zero Volume up on the board so far this morning. This proves a reduction of 5 contracts from yesterday’s early morning quote that either got their physicals here or in London (paper or physical?). Silver’s Overall Open Interest shows a gain as 2,840 more contracts were added to the mix in order to keep liquidity happy giving us an early count of 214,136 Overnighters keeping Silver in place.    

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Jim Sinclair’s Commentary

More than half of the amount of munis held by households—a third of the $4 trillion market—now sits in separately managed accounts or mutual funds, a trend that has changed the way the bonds are sold.

This trend exists not only in the muni market but has just been accelerated in the equity market. The idea of trading for free has eliminated the broker dealer leaving only major funds and EFTs as equity traders. This has very significant implications for what future markets will look like along with future implications of AI.

Money Managers Gain Sway Over Muni Market [Subscription Required]
October 9, 2019

A larger-than-ever share of municipal bonds is being managed by professionals, shaking up a market that has traditionally been the domain of mom- and-pop investors.

The rapid expansion of muni money managers, under way for more than a decade, reached a milestone in the past year: More than half of the total amount of muni bonds held by households—a third of the $4 trillion market—now sits in separately managed accounts or mutual funds.

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Jim Sinclair’s Commentary

Even with a rebound on trade hopes, the KBW Nasdaq Bank Index of large bank stocks has fallen more than 4% this month, compared with a 2% decline for the S&P 500

Apparently, more people understand the genesis of the problem in the repo market than before.

The Rebound in Bank Stocks Was Short-Lived
October 9, 2019

Bank stocks have erased much of their September rally and are sliding once again in October, hurt by bets on lower interest rates and expectations for a turbulent earnings season.

Even with a rebound on trade hopes Wednesday, the KBW Nasdaq Bank Index of large bank stocks has fallen 4.7% so far this month, compared with a 1.9% decline for the S&P 500. In the past 12 months, the gauge of lenders has slid 11%, while the S&P is slightly higher.

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Jim Sinclair’s Commentary

So far, trade talks have resume multiple times and in all probability will continue that partner?

Trade Talks Resume at Pivotal Moment in U.S.-China Relations
October 9, 2019

WASHINGTON—Senior U.S. and Chinese officials will square off for trade talks Thursday at a pivotal moment in the countries’ relationship, with higher tariffs looming if negotiators fail to break a five-month stalemate.

The backdrop for the talks has become more complicated. What started as a U.S. assault on Chinese trading practices has become muddied by other issues, from China’s repression of its Muslim minorities to the possible impeachment of President Trump.

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