The chart below shows the opposite scenario. Buying the London p.m. gold fix and selling the next morning at the London a.m. gold fix, beginning with the same theoretical $100 investment and reinvesting the proceeds every trading day for the last 43 years. As of the close of trading yesterday, you’re hundred bucks would theoretically be worth $26,810. Any questions? Sponsor Advertisement This isn’t rocket science, dear reader. These are the actual numbers from the LBMA website that Nick Laird used to compute these charts. Everything you need to know about the Anglo/American price management scheme in gold is right here in front of you. All four precious metals came under selling pressure during the Wednesday trading session in the Far East earlier today—and that pattern has continued now that London has been open a bit over an hour. Volumes in gold were pretty light going into the London open, and mostly of the HFT variety, as there were virtually no roll-overs out of the February contract. Silver’s volume was pretty light at that time as well. But since the open, gold volume has increased by about 5,000 contracts during the the first hour of trading—and now sit at 23,000 contracts in February—which still isn’t a lot. However, gross silver volume is up 40% during the same time period, and now sits at a bit over 10,000 contracts. That’s pretty big number for this time of day. The dollar index is up about 10 basis points—and a hair under the 81.00 mark as of 4:14 a.m. EST. And as I hit the send button on today’s efforts at 5:20 a.m. EST, I see that new lows were set in both gold and silver in early trading in London—but both metals are well off their lows, at least for the moment. Gold volume has picked up quite a bit—and is over 30,000 contracts, but silver’s volume is only up a thousand contracts or so since I wrote the last paragraph over an hour ago. The dollar index is still hovering just below the 81 mark. That’s all I have for today. I’m not overly impressed with the price action so far on Wednesday—and I’m not really looking forward to what I’ll find when I power up my computer later this morning, as it’s obvious that JPMorgan et al are still at it. See you tomorrow. Platinum didn’t do much yesterday, but the smallish rally in palladium appeared to get capped just before 1 p.m. EST in Comex trading, as it appeared that the price was really about to take off. Here are the charts. Not surprisingly, the stocks gapped down at the open, but the damage wasn’t as bad as one would expect. The stocks spent the rest of the day inching higher, but at 3:15 p.m. EST, a serious buyer put in an appearance—and the gold equities popped into positive territory right at the close. The HUI finished up 0.18%. The HUI finished up 0.19% on Monday. Another engineered price decline during the Comex trading session in both gold and silver The two smallish rallies in Far East trading on their Tuesday was the only time that gold was in positive territory yesterday. The high was in about 2:30 p.m. Hong Kong time—and 90 minutes before the London open. By the time trading began on the Comex at 8:20 a.m. EST, the gold price was back down to its Monday close. Then the engineered price decline began, with most of the loss in by the open of the equity markets in New York. The low tick was around 10:35 a.m.—and the rally that began around noon ran out of gas about 3:30 p.m. in electronic trading. The CME recorded the high and low ticks at $1,244.70 and $1,224.20 in the February contract. Gold closed on Tuesday at $1,231.80 spot, down an even six bucks from Monday. Volume, net of roll-overs out of the February contract, was around 108,000 contracts, which wasn’t particularly heavy. The dollar index closed late on Monday afternoon in New York at 80.67. From there it rose to 80.79 by about 2:30 p.m. in Hong Kong on their Tuesday—and hit its low of 80.61 shortly after 12 o’clock noon in London. Then away it went to the upside, but that rally ran out of gas at 80.92—very close to the London p.m. gold fix—and that turned out to be the high of the day as well. By 12:15 p.m. EST, the index was down to 80.72—but rallied into the close from there. The dollar index finished the day at 80.87—which was up 20 basis points from Monday’s close. Once again, it’s more than a stretch to match the price moves in the precious metals to anything that was going on in the currency market. Skyharbour Resources Ltd. 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Please visit our website for more information. The CME’s Daily Delivery Report showed that zero gold and 7 silver contracts were posted for delivery within the Comex-approved depositories on Thursday. There were no reported changes in GLD yesterday—and as of 9:57 p.m. EST yesterday evening, there were no reported changes in SLV, either. Once again, the U.S. Mint did not update its website with 2014 sales. If they have sold anything in 2014 so far, it’s not possible to read that data the way the applicable web page is set up. There was almost no in/out movement in gold at the Comex-approved depositories on Monday. They reported receiving only 707 troy ounces of gold—and didn’t ship any out. Of course it was far more active in silver, as 717,017 troy ounces were received—all in the CNT depository—and 180,514 troy ounces were reported shipped out. The link to that activity is here. I don’t have all that many stories for you today—and the final edit is yours. More than the actual timing of the coming price penetration of the moving averages in gold and silver, there is another possibility that looms large – how easily (or not) will the commercials let the technical funds buy back their short positions and establish long positions? This is the question I ponder more than any other. Simply stated – unless the commercials sell fairly aggressively as the moving averages are penetrated to the upside, there is a real possibility of disorderly pricing to the upside. I’m back to the thought that a market that can fall $200 (gold) or $5 or $15 (silver) in days can also rise by such amounts. It comes down to how easily the commercials will let the tech funds off the short hook. Time will tell, but let me remind you that the commercials (and particularly JPMorgan) will rip out the financial lungs of anyone on the wrong side of a trade if it suits them. – Silver analyst Ted Butler: 04 January 2014 Another day—and another engineered price decline during the Comex trading session in both gold and silver. When will it end, you ask? Beats me, although I was happy to see that the precious metal equities managed to recover all their loses as the trading day wore on in New York yesterday. Since yesterday [at the close of Comex trading] was also the cut-off for this Friday’s Commitment of Traders Report—and monthly Bank Participation Report—I’m hoping that all of yesterday’s price and volume activity will be reported in a timely manner by JPMorgan et al, because as Ted Butler pointed out on Monday, it appears that large chunks of data were not reported in a timely manner in last week’s COT Report. Yesterday I posted a couple of Nick Laird’s charts showing the intraday price moves in both gold and silver for December—and also for the entire 2013 calendar year in both metals. Here are two more charts from Nick, both of which have graced this column in the past and, I though worth posting again now. I would have put them in yesterday’s column, but I didn’t get them from Nick in time. Both charts are for gold—and both are fairly self-explanatory. The two buy and sell scenarios presented—and you can’t do this in real life—show the results of a theoretical $100 investment if you bought gold at the London a.m. fix, and then sold at the London p.m. fix—vs. buying at the London p.m. fix and then selling the next morning at the London a.m. fix. Under buy/sell scenario #1 in the chart below—starting on January 1, 1970—your original $100 investment would be worth $13.05 as of the close of trading yesterday. Note the peak on January 1, 1975. That’s when it all started. Except for the big price-spike in January of 1980 when gold hit $850 the ounce, every year [without exception] has been a down/losing year if you’d bought the London a.m. fix and sold the London p.m. fix, and then invested the proceeds the following morning at the a.m. fix. The silver price action followed mostly the same path as gold, except the high tick came around 10:30 a.m. Hong Kong time. The light and low ticks were reported as $20.28 and $19.625 in the March contract, which was more than a 3% intraday move. Silver closed at $19.845 spot, down 32.5 cents from Monday. Volume was pretty decent at around 43,000 contracts, which was about 5% more volume than on Monday. The silver equities did OK as well, at least considering the pounding that the metal itself got, but the chart only bears a passing resemblance to the HUI—and Nick Laird’s Intraday Silver 7 Index closed up the tiniest possible amount—and that was 0.01%. It could have been far worse.