General market conditions

Gold and silver traded with a softer bias yesterday as demand from India was muted. Below par demand from India at the beginning of festival season has dashed hopes of higher sales for the rest of the festival demand. A weaker Indian rupee against the US dollar has resulted in a rise in Indian gold prices. Euro/usd retreating off the highs has also resulted in profit taking at higher prices. News from Europe will be the key today as well as on the weekend. Gold could consolidate in $1710-$1810 wider range for the next two weeks before an attempt at $2000. Copper and base metals are firm on the back of not so bad Chinese GPD numbers yesterday.

News flows will determine the intra day direction of gold and silver. There will be demand for gold around $1730 and below till $1710 from all over the world.

COMEX SILVER DECEMBER 2012 – current price $3284.00

Silver should consolidate in a $3200-$3500 wider range for the next two weeks. There will be a technical break down below $3200.
The global economy will be the key for silver in the short term.
Long term bullishness is intact for silver. But the pace of the rise of the silver price rise is hard to predict.

MCX NICKEL NOVEMBER 2012 (all prices in Indian rupee below)

Nickel seems to have formed a short term bottom this week and can rise to 988 once gain. One can invest in Nickel if prices fall below 880 with a stop loss of 830 for the short term. Fundamentals are neutral for Nickel.

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani

Disclosure: Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.

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NOTES TO THE ABOVE REPORT

PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS

PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.

APPROPRIATE STOP LOSSES PER LOT IN US DOLLARS ON THE TRADING CALLS GIVEN IN THIS REPORT

COMEX GOLD – $15-$17

COMEX SILVER: $25-$30

COMEX COPPER: $3

NYMEX CRUDE OIL: $0.60

SPOT SILVER: $0.25

SPOT GOLD: $15-$17

THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT

Source: www.goldseek.com

London Trader - The LBMA Is A Massive Ponzi Scheme

18/10/2012

On July 20th, the ‘London Trader’ told King World News, “The LBMA’s price fixing scheme is coming to an end.” Gold quickly rose $200 after that interview. Today the source now tells KWN the LBMA has, “... incredibly large quantities of paper silver and gold being traded each day, but the real problem here is there is virtually nothing to back this up.” The source also said, “This is all part of the LBMA Ponzi scheme.”

King World News has now released a total of three written interviews with the London Trader. This is the third in a series of blockbuster interviews which uncovers what is happening behind the scenes in the gold and silver markets. The source also discussed the incredible tightness in the physical silver market.

Here is what the source had to say in Part III of the interview: “The physical silver market is extraordinarily tight. It’s insanely tight right now. In other words, there isn’t any for sale. We are seeing large premiums in places like Shanghai. If a buyer wants size in physical silver, you are going to have to wait a long time.”

The London Trader continues:

“When the commercials see a large order enter the market, they just turn the market around. They don’t have that quantity of silver in inventory. Every day the London Bullion Market Association (LBMA) clears 5,000 tons of silver, and between 600 and 700 tons of gold through paper trading. When you think about it, that is a ridiculous amount.

This is all part of the LBMA Ponzi scheme. You have these incredibly large quantities of paper silver and gold being traded each day, but the real problem here is there is virtually nothing to back this up....

“So they have paper silver as an example, and it’s heavily leveraged.

So if I turn up to the LBMA and I say, ‘Out of your 5,000 tons of silver that you clear every day, I just want 300 tons.’ It shouldn’t be a problem. It shouldn’t even cause a ripple. But when you think about it, and that physical silver is leveraged 100 to 1, that’s more than the annual mine production of silver for the entire year when you do the math, including the leverage implications.

Of course they can’t deliver the 300 tons. They don’t have it. So when you actually go and send a Brinks truck to go and pick this silver up at the back door of Scotia Mocatta, you aren’t going to get it. An order like that takes at least two months to get filled.

The problem right now is that there is such a large overhang of orders in both of these markets, and specifically silver. Every day there are people turning up at the fix to buy physical, regardless of price. As the markets are taken down, it exponentially increases the amount of physical silver that needs to be filled.

I would also add that the local traders are heavily short now. So we are seeing a large short position building in silver on this price decline. And don’t forget, the COT reports are groomed. I don’t trust them.

So when they see a large physical order enter the market, that’s the point where the commercials start covering. Remember, the gold and silver markets on the COMEX are all about chasing out leveraged longs. That’s all that market is about right now.

But we will see a day when silver can no longer be capped through paper trading and various games being played at the LBMA and COMEX, and in the end, it will be the physical market which will be the deciding factor. At that point you will see the real price of silver for the first time, and it will leave people in disbelief.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/17_London_Trader_-_The_LBMA_Is_A_Massive_Ponzi_Scheme.html

Monday, 22 October 2012