Sunday, August 18, 2013

JIM SINCLAIR'S IN THE NEWS TODAY


http://www.jsmineset.com/2013/08/18/in-the-news-today-1623/

In The News Today

Posted  at 9:14 AM (CST) by  & filed under In The News.
Jim Sinclair’s Commentary
The arbitrage transaction between the Comex spot cash gold price and real world gold cash for spot continues.
Did the good ole boys sacrifice an exchange in attempts to keep the price of gold lower? It certainly looks that way.
Comex Registered Gold Cover Ratios Hit Unprecedented Levels: Over 50 Claims Per Oz. Aug 15 2013, 09:21
(Editors’ Note: This article covers a micro-cap stock. Please be aware of the risks associated with these stocks.)
In previous articles we have covered both the gold and silver COMEX inventories, with a particular focus on the massive decline in gold inventories. In this article we will cover the COMEX gold cover ratios, which is possibly the most important COMEX indicator because it tells an investor how many ounces of gold are stored at the COMEX for every outstanding gold contract.
This ratio is only regularly observed by some of the most sophisticated gold market participants. But recently, just as we have seen unprecedented drops in COMEX inventories, we are now seeing this ratio reach levels that have not been seen before in recent COMEX history and we believe gold investors should give it some attention.
It is something that is very relevant to investors who own physical gold and the gold ETFs (GLD, PHYS, and CEF) because this ratio relates to the physical supply present at one of the two largest gold trading markets, the COMEX. Abnormal activity in the COMEX may signify extraordinary events behind the scenes that would ultimately affect the gold price and would interest any investor in the precious metals.
Before we get into the gold cover ratios, lets quickly cover some basic concepts related to COMEX warehousing.
Introduction to COMEX Warehousing
COMEX is an exchange that offers metal warehousing and storage options for its clients. The list of their silver warehouses can be foundhere and their gold warehouses can be found here. In the case of silver and gold, the metal is stored at these official warehouses on behalf of banks and their clients and can be used to settle futures contracts, transferred between clients, or withdrawn from the warehouse. This offers large holders of precious metals a convenient way to store their metal with minimal storage fees – very convenient indeed if you hold large amounts of gold or silver and you don’t want to store them in your basement.

Saudi King Abdullah backs Egypt’s military ruler, warns against outside interference DEBKAfile Exclusive Report August 16, 2013, 10:33 PM (IDT)
Facing condemnation at every hand from the West, Egypt’s military rulers received a powerful shot in the arm from Riyadh Friday, Aug. 16, with an unprecedented public assurance from Saudi King Abdullah bin Abdel Aziz that the kingdom supports Egypt in the fight “against terrorism” – the military rulers’ term for Muslim Brotherhood resistance. In a statement broadcast by official Al-Ekhbariya TV, Abdullah said Egypt’s stability is being targeted by “haters” and warned that anyone that interferes in Egypt’s internal affairs seeks to “waken sedition.”
debkafile and DEBKA Weekly have been reporting since last week that Saudi Arabia and the UAR stand firmly behind Egypt’s military strongman Gen. Abdel-Fattah el-Sisi.
debkafile reports a weak response to Brotherhood’s call for millions to rally Friday to join in the protest in support of deposed president Mohamed Morsi and against the government crackdown two days ago which left more than 600 dead. No more than tens of thousands of supporters took to the streets across the country Friday. By nightfall, 83 people were reported killed in clashes across the country – in Cairo, Fayoum, Damietta and Ismailia – including 24 security personnel. An officer was killed at one of the checkpoints thrown up to block the demonstrators’ access to Tahrir Square.
The relatively low turnout points to the Muslim Brotherhood’s hard core having decided that avoiding further deadly clashes with the Egyptian military is the better part of valor.
Thursday, Aug. 15, debkafile referred to Saudi support for the Egyptian military ruler in an article captioned: US-Egyptian relations are on the rocks.
When the clashes between Egyptian security forces and pro-Morsi protesters were at their peak in Cairo Wednesday, Aug. 14 – 525 dead and 3,700 wounded to date – President Barack Obama put in a call to Egypt’s strongman, Defense Minister Gen. Abdel-Fattah El-Sissi, debkafile’s intelligence sources report.  The US president wanted to give the general a dressing-down much on the lines of the call he made to former president Hosni Mubarak in February 2011 at the high point of the Arab Spring Tahrir Sq demonstrations against his rule, namely:  Stop repressing the protesters and firing live ammunition. Step down!

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