Gold Manipulator Gets Caught
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In This Issue.

* Commodity Currencies rally.

* Euro remains down, but flat .

* Gold gets sold again!..

* Singapore prints strong IP.

And Now. Today's A Pfennig For Your Thoughts.

Gold Manipulator Gets Caught.

Good Day! . And a Tom Terrific Tuesday to you! What a great 3-day Holiday weekend! We had to dodge a few raindrops, but other than that, sunshine and lollipops were the order of the days! I got to spend Sunday with most of our neighborhood friends at a wedding, and then Monday with the family. Little Braden Charles had a great birthday weekend as far I could tell. And the Cardinals took the series from the Reds, which makes 10 of the last 11 series they've beaten the Reds. The Yankees are in town for the first time since 2005, so that's pretty cool.

Other things that are cool this week, will be. Hmmm, I guess I should have stopped to think about what things might be cool this week, before I started typing, eh? HA! One headline story title on the Bloomberg this morning, says: "Gold falls to two-week low in London as Ukraine outlook weighed." And then another one 3 stories down from that one, says,: "Ruble retreats as Ukraine violence spurs bets advance overdone." Now, how can the ruble be retreating because of Ukraine violence, and Gold not benefit? Or, how does the ruble retreat, if the outlook for Ukraine is weighed? Reminds me of some lyrics from the Pet Shop Boys: "Too many shadows, whispering voices, Face on poster, too many choices, if, when, why, what?

OK, it's not every day that I pull some lyrics out from PSB! And it's not every day that you see the dollar soft, but without the euro leading the charge VS the green/peachback. The Commodity currencies, for the most part were stronger yesterday, as the hardwood lump charcoal burned in my Big Green Egg, and remain stronger through the early morning trading overseas. In Europe over the weekend, they had the Eurozone Parliament elections, but from what I can see, there weren't too many feathers ruffled there, so the euro didn't get hurt or benefit from the elections, as most feared it would get hurt, as the "Euro-skeptics" were supposed to really raise a ruckus, but didn't.

It appears that the Bank of Japan (BOJ) has thrown their hat into the currency wars ring once again. Apparently it had gotten kicked out of the ring, but make no mistake about it. Japan wants and desires the yen to be in the ring and getting weak! On Friday, BOJ Gov. Kuroda, said he, "saw no reason for the yen to strengthen against key currencies. I don't think it's reasonable to expect the yen to appreciate against the dollar." You know, as I always tell you, when a Central Banker comes out and says he wants his currency to weaken, over and over again, eventually the markets say, OK, and go along with the Central Bank. Yen will always, for some reason that doesn't make sense to me, remain a safe haven currency, so when things get hairy, and the safe havens are being bought, yen will get bought. But other than that, yen should see selling, for the Central Banker wants it, and the Japanese fundamentals beg for it! Remember what I told you that the well-respected analyst, Grant Williams said about Japan. That they are a basket case.

The Chinese renminbi / yuan appreciated VS the dollar overnight, but the move was small. The People's Bank of China (PBOC) Gov. Zhou said that, "the economy is in a rare complicated situation, fueling concern a recover in growth will be delayed." That didn't help matters any, and neither did the escalating saber rattling with Vietnam. A Vietnamese Ship and a Chinese Ship collided in the open sea this weekend, but China has come out and apologized to Vietnam about the incident. First China was picking at an old wound with Japan, and now they are doing the same with Vietnam. I call this flexing their muscles, to see just how far they can be flexed.

I don't like all this stuff going on in China, as it takes away from the task at hand, which is turning around the economy. But as long as it doesn't go anywhere from here, things should get back to normal.

Remaining in the Asian region. Singapore printed a strong Industrial Production repot for April yesterday. IP for April in Singapore was up 4.6% VS a year ago, and was better than the expectations for rise of 4.3%... In addition to this a side report that didn't get as much attention as Industrial Production, was the Confidence among Manufacturers in Singapore, which saw the index increase from +4 to a +7. This is a 6-month viewpoint, so it's not just saying things are good today, they are saying that the Manufacturers think things will be good going forward! But even with all this good news, the Sing dollar (S$) lost ground overnight. UGH!

The IMM Futures Positions report from last week, saw little in the way of movement from the previous week. U.S. dollar long positions were down, but only by 5,300 contracts. The euro, which had gone from a strong net long position before the last Eurozone Central Bank (ECB) meeting, where Draghi threw the euro under the bus, to now being in a short position, held steady last week. The short position in the euro is small at only 9,200 contracts, but it is the largest level in the euro since early February. Remember, these positions can change quickly, and should only be used a helpful assistance in your decisions to buy or sell.

Well, as I told you above, Gold is down today. And the other precious metals are finding it difficult to gain this morning. It's all about U.S. stocks these days, and as long as the Bernanke Asset Bubble machine keeps pumping air into the stock bubble, everyone that's in stocks are happy campers.. Me? I have told you already how I feel about this stock market bubble, but Shoot Rudy, as long as the bubble keeps getting air blow into it, I guess it makes sense. But to turn your nose up at Gold is just plain wrong!

I found this on and I'll give you a snippet of it, and then expect you to visit the site to read the rest of the story, that from this snippet I believe you'll want to read the rest of the story immediately! " Now that Gold manipulation is no long a conspiracy theory and has joined every other "tinfoil" narrative into the realm of conspiracy fact, we urge readers to catch up on both what was the story of the day, namely the UK regulator cracking down on exactly one Barclays trader for manipulating the gold price in a way that prevented him from paying out a substantial fee to his counterparty, as well as reading the full explanation of just how said manipulation was conducted."

Here's the link:

The U.S. Data Cupboard will find more to offer the markets this week, starting with the Durable Goods Orders for April, and the Capital Goods Orders. Both of these are expected to be negative for April, which will play well in the sandbox with the other data prints from the U.S. that have been disappointing this month. Remember? Retail Sales and Industrial Production? Oh! And did you hear the news that Hewlett Packard (HP) announced that they will cut 11,000 to 16,000 more jobs, bring the total to 50,000? That's not a good sign for the economy, I don't care what the CEO says!

For What It's Worth. Well, today, I have some stuff from James Rickards, of whom I've quoted quite a few times in the past few years, as he has become someone that the media seeks out to get his opinion of what's going on and what's going to happen. Well, he's never short on words, so this might turn out to be quite long, but I wanted you to get the gist of what he's talking about. And as you read along, you'll probably find yourself saying, "That's what Chuck told us long ago".

So, let me set this up. Rickards is talking about how the Fed stepped in to stop the bleeding in 2008. Here's James Rickards. that was on last Friday.

""Think of it as a bunch of dominoes falling. All the dominoes are going to fall, but if I drop a steel curtain between two dominoes, that's going to stop. That's what the Fed did."

Rickards believes "things should have been allowed to crash" in 2008. "All the banks should have been nationalized by the government, the stocks should have been wiped out, the bondholders should have taken a haircut and the clean banks should have been re-IPOed," he argued.

"That's hope and faith in the American people and entrepreneurship. That's what I advocate. The government doesn't believe in itself. So when you start to go down, but instead of hitting bottom, you truncate it and guess what, you're flat-lining forever," he asserted.

But the Fed's tactics didn't change the dynamics, Rickards maintained, as bad debt and leverage haven't gone away. "That's all still there. Except now, it's worse, because in 2008, what did we hear about? 'Too big to fail,' right? Well guess what, the five biggest banks in America today are bigger than they were in 2008," he insisted.

"So everything about '08 that was too big to fail is bigger today. Those dominoes are still waiting."

Meanwhile, the Fed has printed $4 trillion during the last six years. "So, they've got no more drive power," Rickards contended. Liquidity crises arise every five years, he said. "So what's going to happen when the next liquidity crisis comes?"

It won't be pretty. "The next time it happens, it's going to be bigger than the Fed, that's why they're not going to be able to stop it," he predicted. The fact that the financial system is bigger than in 2008 will make this crisis worse, Rickards added.

"The depression of 1920 was as sharp and as hard as what happened in 1929 and 2008. But the government let it go and guess what? It was over in 18 months and we had 10 years of prosperity and Roaring Twenties," he said.

"But that actually is a very healthy process. But because we haven't allowed the system to heal in all these other crises, the next one is going to be so big that the outcome is likely to be money riots and social discord and then you'll see a neo-fascist response."

Chuck again. Leave it to James Rickards to tell it like he sees it! Now, see why I say that interest rates will spiral out of control within 5 years, and that's why I created the MarketSafe Treasury CD?

To recap. The currencies found little to trade on with the U.S. and U.K. on Holiday yesterday, so things began to pick up in the overnight markets, and the Commodity currencies seem to hold the upper hand VS the dollar this morning. The euro is flat on the day, as the Eurozone Parliament elections didn't ruffle many feathers. Gold is down again this morning, as the markets are all about stocks, and turning their noses up to Gold.

Currencies today 5/27/14. American Style: A$ .9260, kiwi .8545, C$ .9255, euro 1.3650, sterling 1.6830, Swiss $1.1165, . European Style: rand 10.4275, krone 5.9515, SEK 6.6240, forint 222.30, zloty 3.0495, koruna 20.0980, RUB 34.38, yen 101.95, sing 1.2560, HKD 7.7530, INR 58.06, China 6.1687, pesos 12.87, BRL 2.2245, Dollar Index 80.29, Oil $103.99, 10-year 2.54%, Silver $19.27, Platinum $1,471.13, Palladium $832.50, and Gold. $1,283.70

That's it for today. Well. As Rod Stewart sang. Tonight's the night. Alex will graduate tonight, and his older brother, Andrew will be on stage to had his diploma. And so ends the last chapter and a new chapter of Alex's life begins. I wonder how many readers have been with me since the days when Alex was 3 and sat on my lap while I wrote the Pfennig from home? Cardinals lose in extra innings to the Yankees yesterday, UGH! When I graduated from H.S. we were the "first class to go out on the grass". The football field that is. We were hippies, and wanted to be in touch with the earth. It's a good thing Alex's H.S. is graduating indoors, for it's raining outside today! Andrew tells me that the Missouri Gov. will be on hand to talk to the graduates. I'm sure most of them don't know who he is, and don't care, not that they are disrespecting, but that's just not a part of their world right now! I bet Kathy will be crying when her "baby" walks across the stage. OK. Lots of fun this past weekend, but now it's time to go back to work. I hope you have a Tom Terrific Tuesday.

Chuck Butler
EverBank World Markets

Posted 05-27-2014 4:15 PM by Chuck Butler
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