Wednesday, December 22, 2010
IMF Done Selling Gold - Look Out Above?
Here's the press release LINK. The IMF has been unloading an average of 20 tonnes of gold per month into the market since September 2009. And a lot more than that over the past few months. If the powers-that-be do not come up with another source of gold to replace the IMF sales, gold will potentially move a lot higher in the near future.
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I would debate the fact that they were selling physical gold, more like book entries from sight accounts.
ReplyDeleteJust so everyone knows, I just found out today that SDRG CEO Marc Hazout sold 950,000 shares of SDRG last week:
ReplyDeletehttp://www.secform4.com/insider-trading/1017290.htm
http://www.secform4.com/filings/1017290/000106299310004319.htm
Don't disagree rick, but it's the perception in general out there that they try to manipulate.
ReplyDeleteNo surprise there Dave. Hazout is a real piece of work. Hopefully he will get what he deserves, an all expenses paid trip behind bars.
ReplyDeleteWhat is surprising is with all the other directors in SDRG that have tons of experience in the mining industry that they were also fooled by Hazout or were totally blindsided by this also. I mean how could they not know the guy was just ripping off the company??? Hopefully they were unaware because they were too busy working but I have my suspicions. If the properties have as much value as many believe I only hope that Hazout can be ousted and the company can move forward productively.
What will "Marc Hazmat" do with the other 16+million shares? LOL
ReplyDeleteCan't this buy be arrested?
Where are the other directors?
Makes you think that a lot of the so called scrap gold sales in the past were in fact disguised Central Bank selling, doesn't it. Here we are, you can't walk through a shopping center without noticing adverts for scrap gold and the sales of scrap gold are supposedly falling?
ReplyDeleteJewelry demand in the four corners of the globe held despite the higher prices. In addition, the influx of scrap gold, normally a cooling factor whenever gold prices spike higher, was largely absent this year, analysts said.
http://www.marketwatch.com/story/golds-prospects-rosy-in-2011-but-pitfalls-abound-2010-12-16
Eric Sprott tried to buy some of this gold, the IMF refused to sell to any entity that was not a sovereign. The back-story, as I understand it, is the buyer was not allowed to take physical delivery because the IMF does not have physical possession.
ReplyDeleteStory here
Looks like ECU is showing cracks.
ReplyDeleteDo we have double dud plays on our hands here?
My ECU brother from another mother. ECU is not showing cracks. It is being sold down by the "street broker" Haywood Securities in Toronto. They have been unloading since the mid-1.30's. It is thought that they are fronting for a big hedge fund that is short and trying defend its position.
ReplyDeleteECU will continue having fantastic news releases over the next month. You see the latest drilling results?
This story gets better by the week. I will continue adding on every smack.
ECU, GPU, many others.
ReplyDeleteThese things have all tracked back about 15 percent in recent weeks and I see haywood doing the same thing with many of these stocks, and probably for the same reason.
My guess is that this is a year end bonus driven effort to repair severe damage to these infernal "pairs trades", long the physical, or ETf more accurately, and short a basket of Juniors....preferably ones that are easy to beat up. This trade went very badly offside in Q4 as JPM began covering the silver short , and the stock (short) side of the trade skyrocketed against them ,and very probably a lot more than their PM long side.
I also think its driven by year end window dressing ,ie knock down the stock side with naked or god forbid legitimate short selling,and have a nice pretty or prettier picture at YE. So are "they" still there nexxt week? perhaps , even thought the last trading day for 2010 in canada was Friday.
ECU has been classically manipulated downwards from the very day that GATA put their imprimatur on it 3 years ago ,it became a political football from that day forward.
Alternatively, this could just be year end profit taking in a strong sector.
let them fiddle, the game resumes in January,our game that is, and these propellor heads shorting down the juniors for their chickens...bonuses should get tidily raped again as silver goes through 30, on its way to X.Nothing to it.:)
ECU, GPU et al,
ReplyDeleteTo me the issue is what is the true quality of the short side of these pair trades, does haywood even bother borrowing the stock, or are these just naked shorts.Maybe BCSC would have an interest.
Its pretty easy to beat these stocks up in normal times , of course what they did not anticipate was a short squeeze in silver from 17 to 30.
If as Embry says, another big PM leg lies directly ahead, then this little year end manoevre to carve 20 percent off the stocks with silver the metal dead flat is short term gain for long term pain. They will just have to cover again on the move to 40 or higher.
I confess to really "getting" pair traading, ...if..as generally accepted the stocks, and particularly juniors outperform the metal move in percentage terms, and generally substantially, then, er , where is the trade.
I suppose you can horrendously lever up the long metal side of the trade, and there must be some logic to the strategy or they would not do it.
maybe some clever person on this board can explain "pair trading" to an old fool. :)
I just kind of buy the 2 metals , buy and hold 30 of the stocks, and don't do a good gd thing,unless something gets taken over which has happened periodically.One persons opinion.