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March 9, 2010 / Hal (GT)

Gata, Russia, Greeks, Credit Default Swaps, China, Gold, and Unemployment.


Okay. Well… the last two days has been pretty interesting to me in terms of the precious metals and the stuff going on. I’m not sure, but I kind of get the sense that something may be in the offing. Will it be to the upside of the downside? I frankly don’t know. At this point my feeling has been that there has been a bit of a tug of war going on between and so far we’ve basically just continue in this sideways move.

Right now all market appear to be closed as I look at ExactPrice. Gold is at $1,120.30 after fending off a big push down to around $1,111.00. Silver is at $17.25 so it basically moved sideways today but saw a high around $17.40. Platinum ended down at $1,595.70.

Now onto the news items of today and yesterday that I feel worth mentioning.

GATA appeals to CFTC to act against manipulative shorts

GATA today delivered to the chairman of the U.S. Commodity Futures Trading Commission, Gary Gensler, a letter from GATA Chairman Bill Murphy, appealing to the CFTC to act against the concentrated and manipulative short positions in the precious metals markets. The commission is expected to hold a hearing this month on establishing position limits in those markets. Murphy’s letter is appended.

Russia Accumulates Gold, As BRIC Nations Sense The Age Of The Dollar Is Toast

My favorite line from this post is:

“I get the impression, though, that most traders are playing checkers at a chess match.”

There’s a pretty good piece on Safe Haven by Ned W. Schmidt:

Gold Thoughts

The Greeks are learning the tough consequences of worshiping a false god. For years they sought the blessing of Keynesianism, only now to find it comes with a price. Keynes introduced the notion of government debt as salvation, the road to prosperity. Issue debt, and you will prosper. With those words, citizens of many nations turned their minds and ears off to reason. How could so many come to believe that borrowing money was the secret to prosperity?

If you read only one thing, read this:

Washington Must Ban U.S. Credit Derivatives as Traders Demand Gold

Congress should act immediately to abolish credit default swaps on the United States, because these derivatives will foment distortions in global currencies and gold. Failure to act now will only mean the U.S. will be forced to act after these “financial weapons of mass destruction” levy heavy casualties. These obligations now settle in euros, but the end game is to settle them in gold. This is so ripe for speculative manipulation that you might as well cover the U.S. map with a bull’s-eye.

I was wondering what drove gold down this morning. Then I found out China said something silly. You just know they were laughing afterwards.

Now China’s talking gold down, maybe wanting to get more cheap

Finally, check out this article on unemployment from The Washington Post (emphasis mine):

Are unemployment benefits no longer temporary?

About 11.4 million out-of-work people now collect unemployment compensation, at a cost of $10 billion a month. Half of them have been receiving payments for more than six months, the usual insurance limit. But under multiple extensions enacted by the federal government in response to the downturn, workers can collect the payments for as long as 99 weeks in states with the highest unemployment rates — the longest period since the program’s inception.

I was talking with an unemployed person Sunday and he was very thankful to this. Yeah, we’re on the road to “recovery” all right.

Until next time.

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