In continuing to monitor the gold spreads, I wanted to note that the August gold contract, which will be heading into delivery next week, has moved to now trading at par with the October gold contract based on the current sets of bids and offers. It is still discounted to the most active December however as well as the February 2014 and June 2014 contracts.
Here are the current sets of bids at this moment:
August 2013 $1321.30
October 2013 $1321.30
December 2013 $1321.60
February 2013 $1322.60
June 2014 $1324.70
Hopefully those who have more time on their hands than I do can monitor the delivery process more closely than I will be able to do and keep us posted on how that goes next week.
Price still needs to push through $1350 to get anything more exciting going. I cannot overemphasize this strongly enough. PRICE MUST CONFIRM ANY TALK OF SUPPLY TIGHTNESS.
The HUI is weaker today also and is not providing any support for the metal at this point in the trading game.
Next week traders will be focusing on the Fed once again.
News out of China derailed silver and especially copper today. It seems the authorities there are ordering factories to Cease and Desist overproducing. That is being interpreted by traders as meaning a further slowdown in growth for the biggest base metals user on the planet. The HSBC manufacturing purchaser managers index hit an eleven month low over there this week.
I have no idea what is going on with the Yen today. I can tell you that there is increasing talk about the upcoming US budget battle once again. Here we go with the now "normal" battle between those who believe the US is spending too much money that it does not have (count me in on this group ) and those who think it needs to spend more and raise taxes again.
By the way, did any of you who follow golf see that Phil Mickelson, who played perhaps the best round of golf of his entire career at last weekend's British Open in Muirfield, will end up paying nearly 61% of all this earnings out in the form of taxes! Something is horribly wrong when the state takes that kind of money from anyone. I have long said that if the tithe, (10%) was good enough for the Almighty to extract from His ancient people, then it should be good enough for puny, mortal man to extract. Apparently the state puts itself above God but then again, what else is new about that?
Methinks your comparison between a religious tithe and a secular tax is just a touch looney. God could level cities, build roads, feed the poor, and control earthquakes, hurricanes, and drought with but a wave of his magic wand. A government not so much.
ReplyDeleteExcuse me Dan, where can I monitor the gold and silver delivery process?
ReplyDeleteShould I just look at the comex gold warehouse (for example here:"http://www.24hgold.com/english/interactive_chart.aspx?title=COMEX%20WAREHOUSES%20REGISTERED%20GOLD&etfcode=COMEX%20WAREHOUSES%20REGISTERED&etfcodecom=gold") or should I look to other kinds of charts, websites?
Dan,
ReplyDeleteJust for you to feel better about Phil Mickelson taxes:
For his two weeks of play, Mickelson earned £1,445,000, or about $2,167,500. IF he were living in France he would pay a special tax of 75%...YES 75% for his earning above 1M Euro ($1.3M) plus various social taxes... Happy Phil he doesn't live in France.
By the way do you know that 8000 French families have paid MORE THAN 100% of their income in TAXES and 12000 families more than 75%.
And people in The States are complaining about high taxes? OK, OK France is definitely NOT the country where one should live...However the French population is 66M... and the majority would not leave the country... Go figure!
Dan,
ReplyDeleteI just read news about JPM being charged and has agreed to pay $400M for manipulating the energy market... One more settlement for these manipulators and they still make billions of dollars in profit.
So you say: " Something is horribly wrong when the state takes that kind of money from anyone.". In JPM's case I will say to you:
"Something is horribly wrong when the state takes so little money and do not put in jail with life sentence anyone manipulating the markets and stealing money from homeowners."
Sorry my American friends, but shame on you America. You deserve to disappear and you will.