Yellen Yacks, Markets Respond, Fischer Saves the Day.
Central Banks Are Losing Effectiveness, Not Control.
In Case You Missed It.
Top Gold And Silver Stories from the week ended August 27, 2016.
The top story of the week: revelations regarding Clinton Foundation donors and their relationship to Hillary Clinton as Secretary of State.
To economic story of the week- continued manipulation of markets by the Federal Reserve via Open Mouth Operations (yack attacks).
Click here to see the Smaulgld commentary video to this report below.
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Gold and silver
Gold closed last week at $1341.10 and closed this week at $1320.50 (-1.5%)
Silver closed last week at $19.25 closed this week at $18.65 (3.1%)
The gold and silver ratio ended the week at 70.8 to 1
Chart of the Week
The Dollar Index whipsawed during a day of high powered Fed Yack Attacks.
You Tube Notes to this report
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Here are the stories we wrote, followed or commented on.
August 22, 2016
Gold
Rate hikeS Up for discussion on CNBC
Yellen could drive gold miners higher
Silver
Motely Fool: Why Silver Mining Stocks Are Scorching Hot Right Now
Record ETF inflows do not support price
Fed Chatter
Fed’s Fischer – Fed close to its goals
Cashless Society
U.S. Mint Sales Update
U.S. Mint reported selling 185,000 American Silver Eaglesand 2,500 American Gold Eagles today.
MTD American Silver Eagles sold 765,000 & American Gold Eagles sold 34,000
YTD American Silver Eagles Sold 28,385,500 /American Gold Eagles sold 470,000
The U.S. Mint reported selling 0 one ounce American Platinum Eagle coins.
YTD 19,000 American Platinum Eagle coins sold.
The U.S. Mint reported selling 0 American Gold Buffalo coins.
MTD 5,000 sold
YTD 126,000 sold
The U.S. Mint Reported selling no Harpers Ferry National Historical Park five ounce silver America The Beautiful Coins.
YTD Sales of Harpers Ferry coins – 34,600
You can compare pricing and shipping charges on American Gold Eagles coins of all sizes at these web sites:
BGASC.com
Golden Eagle Coins
JM Bullion
Money Metals Exchange
August 23, 2016
Gold
Gold rally means an increase in recycling
Gold piles up in Singapore vault
A Tiny Ball of Gold Could Fight Alzheimers
California High Court Upholds Dredge ban to Extract Gold
Jewellers’ buying props up gold; silver rebounds
Central Banks
Bank of Japan has nationalized the stock market
Bank of Japan is the number one holder in 20% of the Nikkei 225!
Losing control of markets or becoming the markets?
US Economic Data
Markit Mfg PMI 52.1, Exp. 52.6
Richmond Fed -11, Exp. +6, Last +10
New Home Sales +654K, Exp. +580K
STILL lower than ANY decdade
New Home Sale Peaks
1960's 665K
70's 843K
80's 880K
90's 949K
2000's 1.389K
2010's 654K https://t.co/euWm6cee5N https://t.co/k62EFwB7y6— Smaulgld (@Smaulgld) August 23, 2016
U.S. Mint Sales Update
U.S. Mint reported selling 245,000 American Silver Eaglesand 1,000 American Gold Eagles today.
MTD American Silver Eagles sold 1,010,000 & American Gold Eagles sold 35,000
YTD American Silver Eagles Sold 28,630,500 /American Gold Eagles sold 471,000
The U.S. Mint reported selling 0 one ounce American Platinum Eagle coins.
YTD 19,000 American Platinum Eagle coins sold.
The U.S. Mint reported selling 0 American Gold Buffalo coins.
MTD 5,000 sold
YTD 126,000 sold
The U.S. Mint Reported selling 500 Harpers Ferry National Historical Park five ounce silver America The Beautiful Coins.
YTD Sales of Harpers Ferry coins – 35,100
August 24, 2016
From Smaulgld.com
FED YACK ATTACKS SUPPORT THE DOLLAR (w/podcast from Wall Street for Main Street’s Jason Burack)
Update to Why Are New Home Sales Still at Levels Last Seen in the 1970’s and 80’s
Gold
SLAM DOWN 15 Billion in gold sold in a flash.
Courts:The Business Judgement Rule: Stupidity is not Illegal
Need to boost dollar and hit #gold ahead of any tentative things Yellen might say about raising rates on Friday https://t.co/erjB130zlh
— Smaulgld (@Smaulgld) August 24, 2016
How Venezuela is Impacting the Gold Market
They want to make it all about the Fed:
Goldcorp struggles with leak at Mexican mine
US Economic Data
Existing Home Sales 5.39MM, Exp. 5.51MM
Reuters U.S. existing home sales decline, prices still strong
but further gains in prices suggested the housing market remained on solid ground.
“The housing market and robust consumer spending are expected to underpin economic growth in the third quarter.”
U.S. Mint Sales Update
U.S. Mint reported selling 0 American Silver Eaglesand 2,500 American Gold Eagles today.
MTD American Silver Eagles sold 1,010,000 & American Gold Eagles sold 37,500
YTD American Silver Eagles Sold 28,630,500 /American Gold Eagles sold 473,500
The U.S. Mint reported selling 0 one ounce American Platinum Eagle coins.
YTD 19,000 American Platinum Eagle coins sold.
The U.S. Mint reported selling 2,500 American Gold Buffalo coins.
MTD 7,500 sold
YTD 128,500 sold
The U.S. Mint Reported selling 500 Harpers Ferry National Historical Park five ounce silver America The Beautiful Coins.
YTD Sales of Harpers Ferry coins – 35,100
August 25, 2016
From Smaulgld.com
SECOND QUARTER 2016 ROYAL CANADIAN MINT SILVER SALES RISE 24%
Canadian Mint Silver Sales
First half Royal Canadian Mint silver sales were 19 million.
Compare Canadian Silver Maple Leaf coins for sale at these online bullion dealers:
BGASC.com
Golden Eagle Coin
JM Bullion
Money Metals Exchange
Gold
Higher Prices deter Hong Kong gold imports
Largest Bank in Romania sells three tons of gold to customers over eight years
Indian Gold Demand up 20% in August from prior three months-after falling sharply in May-July
Indian consumption of gold actually fell 18 percent in the second quarter of 2016 to 131 tonnes, but this is largely due to rising gold prices, not reduced underlying demand. With the festival and marriage season fast approaching, gold demand is expected to surge again.
Gold investment demand takes over from jewelry demand
War on Cash
Oil
China getting more of its oil from Russia than Saudi Arabia
Central Banks are NOT Losing Control
Central Banks eye infrastructure spending- to plug “investment gap”
See Are Infrastructure Bonds Next? the Fed’s blame shifting
Central Banks now own $25 Trillion of Financial Assets
Next stop $50 trillion? $100 Trillion?
De-Dollarization
Poland issues Panda Bonds Poland issues 3 bln yuan panda bonds in China
US Economic Data
Durable Goods 4.4%, Exp. 3.4%
Initial Claims 261K, Exp. 265K, Last 262K
Markit Service PMI 50.9, Exp. 52.0, Last 51.4
Kansas City Fed mfg Index -7, last -15
Fed Chatter
Fed’s George says now is time for Fed to raise rates gradually
Fed’s Kaplan says case for rate hike soon strengthening
August 26, 2016
From Smaulgld.com
NORWAY’S CENTRAL BANK FILES FOR CONFIDENTIAL TREATMENT OF ITS US EQUITY HOLDINGS
Here are the gold and silver mining shares disclosed by Norges Bank and their values* as of June 30, 2015.
As of June 30, 2015, the Norwegian Central Bank owned nearly $1 Billion in gold and silver mining shares.
SECOND QUARTER 2016 CANADIAN MINT GOLD SALES RISE 53%
The Canadian Mint has averaged sales of over one milllion ounces of gold a year since 2008.
You can compare Canadian Gold Maple Leaf coins for sale at these online dealers:
BGASC.com
Golden Eagle Coin
JM Bullion
Money Metals Exchange
US Economic Data
2nd QTR GDP
Reuters:"strong labor market should continue to support consumer spending & underpin growth in the coming quarters" https://t.co/EZ97Is9c1r
— Smaulgld (@Smaulgld) August 26, 2016
While data so far for the third quarter has been mixed, a strong labor market should continue to support consumer spending and underpin growth in the coming quarters.
Inventory Growth Slowdown Dashes Hopes For Q3 GDP Bounce Back
The Big Day
Fed Chatter
St. Louis Fed President Bullard
September might be a good time to raise rates
don’t raise rates just to lower them, admits that bad rate guidance has hurt the Fed’s credibility.
CNBC
Cleveland Fed President Mester
Gradual upward pace of interest rates needed; Every meeting is live meeting timing of rates not important dont hike every meeting;we will have strength in 2nd half -3% growth! On track for pick up in growth in second half. Inflation moving up not as fast as we’d like.
CNBC’s interview with Mesiter
Yellen Yacks
FORGET the Yellen Rate 1/4 pt Hike Talk.
MORE IMPORTANT: $2Trillion in QE could be used to fight next recession / broader asset purchases”
FORGET the Yellen Rate 1/4 pt Hike Talk.
MORE IMPORTANT: $2Trillion in QE could be used to fight next recession / broader asset purchases"— Smaulgld (@Smaulgld) August 26, 2016
BOMBSHELL:Yellen:$2T in QE could be used to fight next recession, w/ broader asset purchases but ppl focused on rate 1/4 rate hike possi.
— Smaulgld (@Smaulgld) August 26, 2016
YELLEN: QE TODAY, QE TOMMORROW, QE FOREVER @zerohedge
— Smaulgld (@Smaulgld) August 26, 2016
If growth is going to be 3% in second half why is Yellen yacking about $2T in QE?
Fed: We are going to raise rates: we mean it.Economy is ROBUST & SOLID
BUT if outside chance of recession we'll do the biggest QE in history— Smaulgld (@Smaulgld) August 26, 2016
On the monetary policy side, future policymakers might choose to consider some additional tools that have been employed by other central banks, though adding them to our toolkit would require a very careful weighing of costs and benefits and, in some cases, could require legislation. For example, future policymakers may wish to explore the possibility of purchasing a broader range of assets
Figure 2 in your handout illustrates this point. It shows simulated paths for interest rates, the unemployment rate, and inflation under three different monetary policy responses–the aggressive rule in the absence of the zero lower bound constraint, the constrained aggressive rule, and the constrained aggressive rule combined with $2 trillion in asset purchases and guidance that the federal funds rate will depart from the rule by staying lower for longer.21
CNBC
Fed’s Stanley Fischer
scheduled on purpose to undo any adverse reaction to Yellen
“Yellen’s comments are consistent with a possible September hike”
Fischer intentionally scheduled on CNBC after Yellen to undo any damage/"misinterpretation" Yellen's speech might have had
— Smaulgld (@Smaulgld) August 26, 2016
Gold
Gold price correction boosts demand; Indian discounts fall to 3-month low
Despite Sovereign Gold Bond Supplies, Indians’ Love Of The Metal Is Unabated
U.S. Mint Sales Update
U.S. Mint reported selling 0 American Silver Eaglesand 0 American Gold Eagles today.
MTD American Silver Eagles sold 1,010,000 & American Gold Eagles sold 37,500
YTD American Silver Eagles Sold 28,630,500 /American Gold Eagles sold 473,500
The U.S. Mint reported selling 1,000 one ounce American Platinum Eagle coins.
YTD 20,000 American Platinum Eagle coins sold.
The U.S. Mint reported selling 0 American Gold Buffalo coins.
MTD 7,500 sold
YTD 128,500 sold
The U.S. Mint Reported selling 500 Harpers Ferry National Historical Park five ounce silver America The Beautiful Coins.
YTD Sales of Harpers Ferry coins – 35,100
August 27, 2016
Romania and Gold (analyst/historian)
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