Gold Commentary

Gold Commentary

Gold Commentary

This Weeks Gold Price Lost $19.30 Closing Comex $1,644.70 Must Not Close Below $1,635

Gold Price Close Today : 1,644.70
Gold Price Close 27-Apr : 1,664.00
Change : -19.30 or -1.2%

Silver Price Close Today : 3038
Silver Price Close 27-Apr : 3134.7
Change : -96.70 or -3.1%

Gold Silver Ratio Today : 54.138
Gold Silver Ratio 27-Apr : 53.083
Change : 1.05 or 2.0%

Silver Gold Ratio : 0.01847
Silver Gold Ratio 27-Apr : 0.01884
Change : -0.00037 or -1.9%

Dow in Gold Dollars : $ 163.87
Dow in Gold Dollars 27-Apr : $ 164.33
Change : $ (0.46) or -0.3%

Dow in Gold Ounces : 7.927
Dow in Gold Ounces 27-Apr : 7.950
Change : -0.02 or -0.3%

Dow in Silver Ounces : 429.17
Dow in Silver Ounces 27-Apr : 422.00
Change : 7.18 or 1.7%

Dow Industrial : 13,038.27
Dow Industrial 27-Apr : 13,228.31
Change : -190.04 or -1.4%

S&P 500 : 1,369.10
S&P 500 27-Apr : 1,403.36
Change : -34.26 or -2.4%

US Dollar Index : 79.505
US Dollar Index 27-Apr : 78.748
Change : 0.757 or 1.0%

Platinum Price Close Today : 1,523.80
Platinum Price Close 27-Apr : 1,570.50
Change : -46.70 or -3.0%

Palladium Price Close Today : 649.90
Palladium Price Close 27-Apr : 681.60
Change : -31.70 or -4.7%

Look at that scoreboard. Silver took a beating, the GOLD PRICE took a leetle whipping, stocks were taken to the woodshed, and the platinum group taken to the woods and beaten with barbed wire.

I was wrong last week when I thought that silver and gold might have seen their final lows. Both went lower this week.

For the week the GOLD PRICE lost $19.30 (1.2%) and closed at $1,644.70. In today's trading it made a low for the week, but found loads of buyers there at $1,626.50 and moved up with a plainly impulsive wave. That dive to a new low followed by a higher close is positive.

But this also sets out requirements for GOLD, namely, it must not close below $1,635. Up above, $1,682 awaiteth still, daring gold to cross that line and rally.

Most optimistic for gold is this: from last week's middle to this week's end, gold pierced the upper boundary of that bullish falling wedge and came back to that boundary line. That famous kiss good-bye? Could be. You'll know when gold crosses above $1,682. This might be a very good time to buy.

That falling wedge line was what gold hit today at $1,626. For now, the odds favor gold rising next week. Watch that $1,626.

The SILVER PRICE closed Comex today at 3038c, up 42.1c.

Friends, at silver's 2974 cent low today it stopped smack on the lower boundary line of that falling wedge, then bounced right back. To this add a vaguely upside-down head and shoulderish or V-bottom pattern. If that was silver's turnaround, then low, it will not again close below 3010c, and next week must speedily trade above 3100c. Otherwise, silver has just been conning us all.

GOLD/SILVER RATIO reached 54.5 this week. If you are sick of waiting for my (perhaps quixotic) 57.5:1 ratio, go ahead and swap gold for silver, quickly.

A great heaviness has fallen on the SILVER and GOLD markets, but don't let it mislead you. 'Tis not the heaviness of a bull market that has turned to bear, but the dolor of a bull market correcting long and hard. The bull loves to wear out its riders so it can throw them off and laugh at them in the dust while it runs away. All the media have soured on silver and gold, the market has gone flat and keeps disappointing. It's just about time for the turnaround.

Before you listen to those croakers, listen here: silver and gold are barely one-third of the way through their price gains. Now is not the time to panic, but to gird up your loins and buy more.

Wall Street was telling us on Tuesday that the millennium had arrived, but doesn't look like it today. Dow puked back 168.32 points (1.27%) to close barely above 13,000 at 13,038.27. S&P500 really took it hard with a 22.47 (1.61%) drop.

I often call it the Potemkin Dow because we know that the US government manipulates that market, and has since 1987 (See President's Working Group on Financial Markets). Of all stock indices in the world, only the Dow and S&P500 have held up. Odd, don't you think? Today we saw that difference emerge as the much broader (500 companies) S&P500 sank 1.6% while the narrow Dow (30 companies) sank only 1.27%. More, the S&P500 also sank through emotional/morale/psychological support at the round number 1,400. Charts don't match, either.

Since February 2011 the S&P500 has formed a clear head and shoulders, which usually signals a top but can sometimes signal only a consolidation. Today it closed nearly slap on the neckline, and stands one and one half gnat's whiskers from breaking down. If it does break through that neckline, support appeareth not before 1,275, where awaiteth the 200 day moving average. HandS is complete.

The Dow has formed a like HandS, but the right shoulder went to a slightly higher high than the head. Does that point to a continuation upward? Today it broke down badly, falling through the 20 and 50 DMAs (13,040 and 13,061). HandS neckline stands at 12,650, so the Dow hovers 400 points above that, but the S&P500's condition flashes bright yellow caution lights on the Dow.

Folks, I don't believe this. I don't believe the phony Dow, I don't believe the stock rally, I don't believe the banks are all just fine and fatter'n October hog, I don't believe the economy is recovering, and I don't believe ne'er a word that falls from the mouths of Federal Reserve and government toadies. The closets are stuffed full of corpses, and some day soon, the doors will begin falling open.

And in the Potemkin currency markets this week, the US dollar index jes' performed mighty miracles. Broke down last week out of a two month forming triangle, and in a rational world would have followed through lower. Not the dollar! It's the World's Reserve Currency, right up there next to grocery coupons. It came back up to the lower boundary of that triangle -- yea, against all odds -- and closed at 79.505, up 31.3 basis points today and 75.7 basis points for the week.

Now I may be foaming at the mouth about nothing. Maybe the dollar index merely has climbed up to that line to give it a final kiss good-bye, but today it closed above the line a tad, and above the 20 and 50 DMAs (79.33 and 79.37).

This week's trading low at 78.60 has a twin in the first of April, so this may very well mark a double bottom for the dollar from which it will launch into the stratosphere. Well, to the tops of small outbuildings at least.

How can you tell which? If the dollar closes above 80.00 it will have sliced clean through the nose of that triangle to the upper side. That will attract more buyers. If the dollar falls below 79, then we will either suffer more of this sideways trading or a lower dollar.

On 4 May 1981 the Federal Reserve raised its interest rate to 19%. That was down from 21.5% in December. Paul Volcker had been appointed as FedHed in 1979 with the brief of wringing inflation out of the monetary system. One thing for sure: raising the interest rate to 21.5% will pull people into dollars. Whatever sense the Fed had back then (and it wasn't much) is long gone now, along with all the serious people and adults.

Y'all enjoy your weekend!

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gold price live




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Gold Price

e-gold Value Access Plan Balance Reports Now Include Monetized Value

e-gold Value Access Plan Balance Reports Now Include Monetized Value

e-gold Value Access Plan Balance Reports Now Include Monetized Value

Following up last week's Monetization Progress Report, we have updated the Balance page to include the Monetized Value of the Final Balance of each e-metal in your account.  The Monetized Value for e-platinum is currently reported as "TBD", meaning "to be determined", but will be updated when e-platinum monetization is complete.

As previously reported, GSR coalesced all of the e-metal accounts in preparation for the monetization process, resulting in your accounts having a zero balance.  The current balance of your account is reported on the Balance page as the "Current Balance".  The balance of your account immediately before being coalesced is reported as the "Final Balance".

Final Balances of a given e-metal were used to determine each account's proportional share of the monetized value of the circulation of that same e-metal.  For an outline of how the monetized value will be distributed, please see the e-gold Value Access Plan Overview

e-gold Value Access Plan Overview

The following is an outline of the monetization and distribution process of the value for all e-metal accounts held in EGL accounts (“Value Access Plan” or “VAP”) as agreed to between the Government, e-gold Ltd (“EGL”) and Gold & Silver Reserve, Inc. (“GSR”) .  The agreement identifies three distinct groups of value: Criminal Proceeds Value (“CPV”), VAP Value, and Residual Value and sets forth the process by which each of these values will be monetized and distributed.

Criminal Proceeds Value Accounts

EGL and GSR have advised the Government that they believe EGL has in its possession evidence establishing that certain accounts contain value that is traceable to criminal activity in which third-party e-gold account holders engaged.  Such accounts with a balance of one (1) ounce or more of e-gold are defined as CPV accounts.

Under the terms of the agreement, EGL will provide to the Government a list of names and contact information of the CPV account holders in order to provide those account holders with the requisite notice.  The government must provide notice for at least 30 days as well as direct notice to any person who reasonably appears to be known as a potential claimant for the CPV.

The deadline for filing a claim by a CPV claimant is at least 35 days after notice is sent (actual notice situation) or no later than 60 days after 1st day of 30 days of publication.  Upon judicial resolution of any CPV claims, the Government will request the court to issue an order forfeiting the CPV to the United States.

The value in these accounts will be monetized as required by the arrest warrant in rem, pursuant to the terms and conditions of the agreement with the proceeds being delivered to the Claims Administrator.

Value Access Plan and Set Aside Value

All remaining value in the system will be monetized as required by the arrest warrant in rem, pursuant to the terms and conditions described in the agreement.  The value of this monetization will be the “VAP Set-Aside Value”.   The Claims Administrator will deposit the VAP Set-Aside Value into an interest bearing escrow account.

The Value Access Plan  will be available to all account holders other than those whose accounts contain criminal proceeds.  VAP participants will be able to access the monetized value of their accounts upon satisfactory completion of EGL’s customer due diligence process subject to disqualification by the Government or the Claims Administrator.   The first step for an account holder will be to complete the Customer Identification Program (“CIP”) via the EGL website.  According to the CIP, account holders are required to provide certain identifying information that is required by U.S. anti-money laundering laws to be verified.

The agreement states that EGL will provide notice to account holders of the launch of the VAP and this notice will advise account holders that:

1. all claims must be submitted within 120 days;
2. distributions from the VAP Set-Aside Value attributable to VAP-Qualified accounts will be made to VAP-Qualified Claimants;
3. by agreement with relevant government authorities, all other value of e-metal accounts is subject to forfeiture action pending in the District of Maryland;
4. VAP-Qualified Claimants will be paid a sum of money representing each VAP-Qualified Account’s proportionate share of the monetized value of each applicable e-metal in the system as calculated by EGL;
5. the distribution of that money will be pursuant to court order; and
6. that such distribution will be in full and final settlement of all amounts due in respect of each VAP-Qualified Account.

As noted above, account holders will have 120 days from launch of VAP to file a claim.  Such claim will require, among other things, providing owner and user identification information.  EGL will collect and verify all identifying information provided by any VAP-eligible account holder and will send to the Claims Administrator on a monthly basis a list:

1. identifying VAP-eligible account holders who have submitted the requisite information as verified by EGL;
2. showing the account number(s) from which each such claimant seeks value; and
3. specifying the value in U.S. dollars of each corresponding account based on its proportionate share of the monetized value.

Both the Government and the Claims Administrator will review the list of VAP-eligible, CIP compliant account holders supplied by EGL.  Either the Claims Administrator or the Government may disqualify such claimant on the following grounds:

1. known engagement in criminal activity;
2. activity related to terrorism; or
3. residence in a country (other than Iran) subject to OFAC sanctions that would prohibit the Claims Administrator from paying the claimant.

The Government and Claims Administrator will have 10 business days to notify VAP-eligible claimant of disqualification.  In the absence of such disqualifications, the Government will submit a motion to the court to release funds for distribution to the VAP Qualified Claimants.  The Government will send a copy of these papers (or notice of disqualification) to the claimants and EGL.   The claimants will have 15 days to object to the amount of distribution and, in the case of a disqualified account holder, to such disqualification.

The agreement calls for distributions to VAP-Qualified Claimants in two tranches.  First, each VAP-Qualified Claimant will receive funds equal to 85% of their approved claim. After objections of other VAP-eligible claimants have been resolved, within 15 days of resolving the claims, the Government will move the court to order the release of so much of the VAP Set-Aside Value as necessary to pay all successful VAP claimants their final proportionate share of the monetized value of their account(s).

While this approach will delay full payment to successful account holders, paying in two tranches will enable successful claimants to receive 85% of their claim immediately while ensuring that all successful claimants receive a properly calculated proportionate share of the VAP Set-Aside Value.
 
Distribution of Residual Value

If there is Residual Value remaining after forfeiture of the CPV, distribution of the VAP Value and, resolution of any disputed claims, the Government will provide notice to all potential claimants to the Residual Value following the same notice and claims process used for CPV accounts.  The Government will provide notice for at least 30 days by publication as well as the required actual notice to any person who reasonably appears to be a known potential claimant.  Deadline for filing a claim by Residual Value claimant:

1. at least 35 days after notice is sent (actual notice situation); or
2. no later than 60 days after 1st day of 30 days of publication.

Residual Value claimants will have up to 60 days from first date publication of notice by the DOJ to file their notice of claim.  Upon judicial resolution of any residual value claims and the merits of the forfeiture action against the Residual Value the Government will seek the forfeiture of the Residual Value.

All of these conditions are intended to ensure that qualified claimants, account holders receive the value from their account at the prevailing exchange rates at the time of monetization less reasonable exchange fees.    

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