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LBMA Plans New Gold Fix – Desperate Attempt To Maintain Status Quo

Queen_Gold

LBMA Plans New Gold Fix – Desperate Attempt To Maintain Status Quo

Queen_Gold

In other LBMA related news, Reuters reported today that there are at least 15 companies interested in running the upcoming replacement to the London ‘Gold Fixing’ auction. Like the recently introduced replacement to the ‘Silver Fixing’ which is now being run by the CME Group and Thomson Reuters, the LBMA has appointed itself as the coordinator for a new London Gold Price auction and is currently soliciting Requests for Proposals (RfPs) from interested parties.

When the new silver fixing auction was being debated in the summer, the World Gold Council (WGC) took the initiative and organised a conference of gold market participants including miners and refiners to work out the key features of a new gold price auction. This WGC initiative appears to have been shot down by the LBMA who felt threatened that a gold mining representative organisation was muscling in on the London gold ‘price discovery’ mechanism.

In advance of the LBMA choosing the winning bid, which may well be CME Group/Thomson Reuters again, the LBMA will be holding another seminar for ‘market participants’ that will feature presentations from the short-listed candidates.

As per a similar LBMA Silver Price seminar that was held in June, the upcoming LBMA gold price seminar will no doubt include various concerned regulators attending as ‘observers’ such as the Bank of England and the Financial Conduct Authority (FCA), as well as the International Swaps and Derivatives Association (ISDA).

ISDA will be concerned about how ‘price discovery’ in the new LBMA Gold Price auction will impact the huge outstanding pile of gold price related derivatives that ISDA coordinates. Since gold is a monetary metal and is strategic as the basis of all fiat currencies, the Bank of England will no doubt be sending senior representatives to the seminar to protect the Bank’s interests.

And since trade ‘clearing’ of the phenomenally large volume of loco London unallocated account gold fixing trades is so important for the six bullion bank members of London Precious Metals Clearing Limited, it will be a given that HSBC, JP Morgan, Deutsche Bank, Barclays,  ScotiaMocatta and UBS will attend the LBMA seminar in an attempt to preserve the City of London’s unallocated account clearing status quo.

 

LBMA Gold and Silver Forward Curves Withdrawn From Next Monday (22nd September 2014)
From next Monday, September 22, the London Bullion Market Association (LBMA) will cease to publish and supply end-of-day forward curve data for gold and silver forward trades to the London Metal Exchange (LME) and LCH.Clearnet.

Therefore, today is the last business day that this long dated forward pricing data will be supplied by the LBMA.

Forward trades are over the counter trades where the two participants agree to buy/sell gold or silver now and sell/buy it back at a later date, usually with one leg of the trade being gold or silver and the other leg being US dollars.

Since the LME will no longer have this data, they cannot price forward trades and so cannot provide a clearing service for London gold forwards since they will not have pricing data to ‘mark to market’ any outstanding gold forwards for their clients.

This forward curve data had been supplied by the eight LBMA forward market makers since 2009, and then by seven market makers after Deutsche Bank dropped out earlier this year.

The CME Group also provides a clearing service for gold forwards and it is unclear how the cessation of the pricing data to the LME might affect the CME’s service. The CME Group was recently appointed by the LBMA to be the calculation agent and platform provider for the new LBMA Silver Price.

Shorter term gold forward data, in the form of Gold Forward Offered rates (GOFO) will continue to be supplied by the forward market makers and published by the LBMA. Therefore, the gold/silver forwards decision by the LBMA and its associated Market Makers will not affect (GOFO) data. GOFO data will still, for the time being, be published in London each business day at 11am.

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Silver Slaughter- Are We Headed to $15?

With silver smashed to a new bear low breaking long term support at $18/oz Friday, Alasdair Macleod joined the show to break down the trading action in precious metals, discussing: 

  • Friday’s silver slaughter- is the bottom finally in, or are we looking at a silver bloodbath on the Globex open Sunday night and a drop to $15? 
  • SGE international gold trading platform goes live- Alasdair discusses the long term implications, stating that the Gold market is being wrested from the West
  • September COMEX silver futures set to break new all-time volume record, shattering May 2013′s previous record
  • Physical silver demand EXPLODES as SDBullion records highest single day sales total ever Friday, physical silver shortages return to US wholesale & retail markets- is a silver premium spike next? 
  • A classic example of Madness of the Crowds: Alibaba US IPO overtakes Walmart market cap- legendary gold trader Jim Sinclair on why Friday “is a day that should be memorized
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At home with UK gangsters The Krays – lemonade, opera and poofs

 

MickyFawcett_ReggieKray_Frances

“All he wanted to do was buy her things and make a fuss of her while she wanted to live a life with things that women and young girls normally want – such as children and sex.” 
- Read my latest daily blog in full here

• SO IT GOES – John Fleming’s Blog

Armageddon

Stacy Summary: Doom in the silver market if you were hoping to swap your silver for fiat.

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In the paper silver market, ETF buyers have been accumulating silver while dumping gold; in fact the demand for silver to gold ratio is at its highest ever:

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The CHART OF THE DAY shows shares outstanding for the biggest U.S. silver ETF surpassing those for the nation’s largest gold fund by the most since 2006, when the iShares Silver Trust was created. Retail buyers are sticking with silver even as prices fell 4.4 percent this year, the most of any precious metal. Gold’s 2 percent gain wasn’t enough to halt declines in selling, and assets in the SPDR Gold Trust are set for a second annual loss. — Bloomberg

And here is the silver supply of the silver ETFs going back to 2006.

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I guess the hedgies are selling. Most of the selling is happening in New York where the paper is traded; they’d get a much higher price in China or India if they had physical and cared about fiat profit.

In other news:



June 2013 Lows Break As Silver Plunges to $17 Handle

Silver has just broken below the June 2013 low of $18, continuing its post FOMC “taper” sell-off Friday, plunging to a new bear market low of $17.77. 
Gold is also continuing its sell-off, but has held above $1215, still $35 off the June 2013 lows of $1179.

Click here for more on Silver’s plunge to new bear market lows:

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Fear and Loathing in Scotland – Why the NO’s Won and Lessons Learned from the Vote

Screen Shot 2014-09-19 at 9.49.01 AMYesterday morning, as I sat down for my ritualistic dose of caffeine and began to write, I noticed that I had auspiciously planted myself in front of two older women from the UK. One was from Scotland, the other from somewhere else in the United Kingdom with an accent I couldn’t quite place. The non-Scottish woman asked her friend for thoughts on the independence referendum. The Scottish woman replied that she would have voted “YES,” but that her friends were all voting “NO.” She said that “they were afraid.”

Upon overhearing this, I felt a pit form in my stomach. Almost all of the enthusiasm that I had for the day was immediately drained. Not only was I excited to see a historically defiant and proud people vote for independence, but yesterday marked the launch of the Contributor section of Liberty Blitzkrieg. It was a big day for me, yet all of a sudden it was as if the atmosphere suddenly evaporated and despair filled the air. Although no results had yet been reported, I knew the result. It was going to be NO.

Read the rest here.

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UK comedian – live on stage – in his first UK comedy show since his death in 2005

MalcolmHardeePoster_CUT

“When I went in to speak to them, the staff said: We’re really excited about tonight’s show! I said: That’s great, but the headliner has been dead since 2005…” 
- Read my latest daily blog in full here

• SO IT GOES – John Fleming’s Blog

Scotland Says “No” – Fallout May Impact Pound

 

The result of the Scottish independence referendum was announced early this morning, with 55.3% of voters wanting to stay in the United Kingdom (UK) and 44.7% wanting Scotland to become an independent nation.


Voter turnout was exceptionally high at nearly 85% (about 3.6 million people), which was not surprising given the importance of the referendum.

To some extent a cloud of economic and currency uncertainty that was hanging over Scotland and the rest of the UK has now been lifted.

(more…)

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Why I Believe Gold & Silver have been Massacred Since 2011

The intensity of the banks’ attacks on gold and silver prices have been long, drawn out, and merciless.
Since 2011, the banks have been hitting completely “below the belt”.   They are are now All-in on their efforts to cap gold & silver, because this time they understand: it’s for all the marbles.
Why have the precious metals been massacred since 2011?
The fate of the US dollar as global reserve currency hangs in the balance.

Click here for more on why gold & silver have been massacred since 2011:

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A world first – Irish eco PC

Sometimes I am proud of us Irish. A very interesting, clever Irish guy doing something useful for the world. Paul Maher is currently developing a machine that is completely poison free in terms of components and their recycling.

A world first – Irish eco PC secures EU Eco Flower label

Micropro

BRAVE FART

BRAVE FART II

Which Global Hegemon Is on Shifting Sands?

Given that all the leading candidates for Global Hegemon are hastening down paths of self-destruction, perhaps there will be no global hegemon dominating the 21st century.

Which nation with aspirations of global dominance (i.e. hegemony) has these attributes?

(more…)

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