{"id":7520,"date":"2013-06-15T12:37:04","date_gmt":"2013-06-15T16:37:04","guid":{"rendered":"http:\/\/www.pgm-blog.com\/?p=7520"},"modified":"2013-06-15T12:37:04","modified_gmt":"2013-06-15T16:37:04","slug":"the-week-of-june-10-2013-in-review-ongoing-market-manipulation","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/the-week-of-june-10-2013-in-review-ongoing-market-manipulation\/","title":{"rendered":"The Week of June 10 2013 in Review -Ongoing Market Manipulation-"},"content":{"rendered":"<p><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/61manipulate.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-7532\" alt=\"Market Manipulation\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/61manipulate.png\" width=\"283\" height=\"288\" \/><\/a><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/fraud-300x199.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-7534 alignright\" alt=\"I don't Know anything\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/fraud-300x199.jpg\" width=\"240\" height=\"159\" \/><\/a><\/p>\n<p>Dear\u00a0<strong>PGM Capital<\/strong>\u00a0Blog readers,<\/p>\n<p>In this weekend blog edition, we want to discuss with you some of the most important events that happened in the global capital markets, the world economy and the world of money in the week of June 10th 2013.:<\/p>\n<ul>\n<li><span style=\"line-height: 13px; font-size: 13px;\">Japan Nikkei 225 Index fell 843.94 points or 6.35 percent<br \/>\non Thursday,\u00a0<\/span><span style=\"line-height: 13px;\"><span style=\"font-size: 13px;\">June 13 2013<\/span><\/span><span style=\"line-height: 13px;\"><span style=\"font-size: 13px;\">.<\/span><\/span><\/li>\n<li>Declining COMEX Gold Inventory.<\/li>\n<li>Yield of 10-year USA treasury bond rose to a 14-month high of 2.25%<br \/>\non Tuesday, June 11, 2013.<\/li>\n<li>Physical Gold &amp; Silver demand rose Globally during the last 3 months.<\/li>\n<\/ul>\n<p><span style=\"color: #0000ff;\"><strong><span style=\"font-size: 13px;\">Japan Nikkei 225 Index fell 843.94 points or 6.35 percent on <\/span>Thursday,\u00a0June 13 2013.<\/strong><\/span><\/p>\n<p>On Thursday June 13th, Japan&#8217;s benchmark, the Nikkei plunged <strong><span style=\"color: #ff0000;\">843.94 points<\/span><\/strong><br \/>\nor <strong><span style=\"color: #ff0000;\">6.35 percent<\/span><\/strong>,\u00a0continuing a period of massive volatility and extending its losses to 20.36% since its May 22 closing high closure of 15,627.26 points to close on a 10-week low of <strong>12,445.38<\/strong> as can be seen from below chart.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/Nikei-1-year-chart-June-13-2013.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-7547 aligncenter\" alt=\"Nikkei-225 1-year chart June 13 2013\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/Nikei-1-year-chart-June-13-2013.png\" width=\"553\" height=\"243\" \/><\/a><\/p>\n<p>After three weeks of roller-coaster trading in stock and currency markets, which brought the Nikkei into bear market territory and have wiped out big chunks of the gains attributed to stimulus and packages of growth-enhancing policies, some questions are arising about Mr. Abe&#8217;s bold attempt to nurse Japan&#8217;s moribund economy back to health.<\/p>\n<p>-A drop of 20% or more from a previous high is the common definition of a bear market-.<\/p>\n<p><span style=\"color: #0000ff;\"><strong>Declining COMEX Gold Inventory<\/strong><\/span><\/p>\n<p>On Monday June 10, a\u00a0report of <a title=\"KITCO\" href=\"http:\/\/www.kitco.com\/\" target=\"_blank\">KITCO<\/a>, a Canadian Company that buys and sells precious metals, shows that inventories of gold bars, (eligible as well as registered) held\u00a0in comodity exchange &#8220;COMEX&#8221; approved warehouses has been falling this year, and is now at a four-year low, as can be seen from below chart.<\/p>\n<div id=\"attachment_7552\" style=\"width: 521px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/Comex-Stocks_fmt.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-7552\" class=\" wp-image-7552 \" alt=\"\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/Comex-Stocks_fmt.png\" width=\"511\" height=\"269\" \/><\/a><p id=\"caption-attachment-7552\" class=\"wp-caption-text\">Source: Sharelynx<\/p><\/div>\n<p>&nbsp;<\/p>\n<p>The difference between the two classifications &#8220;Eligible&#8221; and &#8220;Registered&#8221; Stocks in the COMEX warehouse is important to understand.<\/p>\n<ul>\n<li><span style=\"font-size: 13px;\"><strong>Registered:<\/strong><br \/>\nThis is gold (or silver) that is sitting in the COMEX warehouse and that can be used to settle a futures contract.<\/span><\/li>\n<li><span style=\"font-size: 13px;\"><strong>Eligible<\/strong>:<br \/>\nThis is gold (or silver) that has been purchased (and paid for) by a buyer at some point in the past (and for which they are currently paying storage fees) and which is eligible for delivery to the client at any point that the client specifies. It has been assigned to the client, who has the serial numbers of its bars, and cannot be used for delivery.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #0000ff;\">Essentially, if it&#8217;s &#8216;eligible&#8217; then hands off, and if it&#8217;s &#8216;registered&#8217; it can be sold and delivered.<\/span><\/p>\n<p>As can be seen from below chart, gold has been pouring out of the COMEX warehouses since January 2013, and the slide accelerated just before and immediately after the Cyprus bail-in was announced. This can be interpreted that people got nervous by the Cyprus event and wanted to store their gold privately, where they have direct access to it.<\/p>\n<div id=\"attachment_7557\" style=\"width: 550px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/ComexGoldInventory.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-7557\" class=\" wp-image-7557  \" alt=\"Comex Gold Inventory\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/ComexGoldInventory.png\" width=\"540\" height=\"338\" \/><\/a><p id=\"caption-attachment-7557\" class=\"wp-caption-text\">Souce: Bloomberg<\/p><\/div>\n<p><span style=\"font-size: 13px;\">\u00a0<\/span><\/p>\n<p><span style=\"color: #0000ff;\"><strong><span style=\"font-size: 13px;\">Yield of 10-year USA treasury bond rose to a 14-month high on Tuesday, June 11, 2013.<\/span><\/strong><\/span><\/p>\n<p>The yield on the 10-year Treasury note has risen to 2.25 percent on Tuesday June 11, an almost 14-month high, from 1.63 percent on May 2 as can be seen from below chart. As investors bet\u00a0the Fed\u00a0will begin trimming bond buying. The surge is undermining Bernanke\u2019s unprecedented effort to hold down borrowing costs and combat 7.6 percent unemployment.<\/p>\n<div id=\"attachment_7560\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/1-year-chart-yield-of-the-10-year-note.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-7560\" class=\" wp-image-7560 \" alt=\"1-year chart yield of the 10 year note\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/1-year-chart-yield-of-the-10-year-note.png\" width=\"480\" height=\"216\" \/><\/a><p id=\"caption-attachment-7560\" class=\"wp-caption-text\">Source: Yahoo<\/p><\/div>\n<p>In several of our previous blog article we have warned our readers, that the USA bond market currently is in a huge bubble stage that can implode any time.<\/p>\n<p>Due to this many analyst and investment and financial advisors are raising the red flag and warning investors of asset classes that are over valued., which sooner or later will return to normal value.<\/p>\n<p>A return to normal implies a yield of 4 percent or more for U.S. government bonds with a maturity of 10 years. For the yield of the US Treasury bonds to rise to 4 percent, for this to happens the market value of the 10-year note must fall tens of percent\u2019s, this is the main reason why bond investors currently are currently so nervous<\/p>\n<p><strong><span style=\"color: #0000ff;\">Physical Gold &amp; Silver demand rose Globally during the last 3 months.<\/span><\/strong><\/p>\n<p>According to USA Mints, the physical demand for gold &amp; silver coins is currently very strong.\u00a0 For the 3 months thru June, gold coin sales are 120k oz\u2019s (46%) higher than for the 3 months leading up to the $1900 gold peak in 2011.<\/p>\n<p>The US-Dollar amount of gold coin sales (3-month sum), is $100 million higher than the 2011 gold peak and, looking back, is at the highest level since June 2010. \u00a0Below chart shows that January-March sales are $80 million higher than the 3 months leading to the 2011 peak.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/KWN-Pomboy-II-6-11-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-7561 aligncenter\" alt=\"Gold coin sales vs 3 month avg\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/KWN-Pomboy-II-6-11-1.jpg\" width=\"537\" height=\"359\" \/><\/a><\/p>\n<p>April data for China retail buying of gold, silver &amp; jewelry show record sales.\u00a0 Even if jewelry accounts for 40% of sales, that leaves US$3 billion of gold &amp; silver sales for the month, which is more than US Mint gold &amp; silver coin sales for the past 12 months.<\/p>\n<p>Below chart shows how gold and silver sales in China has soared since the beginning of this year.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/China-RetailGoldSales.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-7564 aligncenter\" alt=\"China Retail Gold Sales\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2013\/06\/China-RetailGoldSales.jpg\" width=\"494\" height=\"334\" \/><\/a><\/p>\n<p>According to the World Gold Council, Chinese demand of gold bars and coins grew to 109.5 tons in Q1 2013, which is 2.5x the 5-year quarterly average of 43.8 tons.<\/p>\n<p>In an interview on June 1st 2013, Stephen Leeb PhD,\u00a0Chairman &amp; Chief Investment Officer of <a title=\"Leeb Capital Management\" href=\"http:\/\/www.leeb.net\/\" target=\"_blank\">Leeb Capital Management<\/a>\u00a0gave his vision on the gold market and his outlook for the price of Gold:<\/p>\n<blockquote><p><span style=\"color: #0000ff;\">I think the biggest news longer-term for gold and silver investors is China\u2019s recent approval of two ETF products.\u00a0 This is yet another sign that China is very intent on accumulating as much gold as they possibly can.\u00a0<\/span> <span style=\"color: #0000ff;\">You have to view this in conjunction with the fact that gold is down, but you also have to understand that when the market turns, the turn will be dramatic.\u00a0 <\/span><\/p>\n<p><span style=\"color: #0000ff;\">At the same time, I don\u2019t think there is any downside in gold.\u00a0 But what is very interesting to me, and typical of the Chinese, is that they waited until they knew there was very little downside in gold and silver to start their two ETF\u2019s<\/span><\/p><\/blockquote>\n<p>Click <span style=\"color: #ff0000;\"><a title=\"http:\/\/www.kingworldnews.com\/kingworldnews\/Broadcast\/Entries\/2013\/6\/1_Dr._Stephen_Leeb_files\/Stephen%20Leeb%206%3A1%3A2013.mp3\" href=\"http:\/\/www.kingworldnews.com\/kingworldnews\/Broadcast\/Entries\/2013\/6\/1_Dr._Stephen_Leeb_files\/Stephen%20Leeb%206%3A1%3A2013.mp3\" target=\"_blank\"><span style=\"color: #ff0000;\"><strong>here<\/strong><\/span><\/a><\/span> to listen to this interview.<\/p>\n<p>We totally agree with the point mentioned by Dr. Stephen Leeb in this interview and want to stress once more that Gold and Silver are real money, with their respective currency code XAU and XAG. The question most people should ask themselves is the following:<\/p>\n<p><span style=\"color: #0000ff;\">When the push comes to shove, which currency would you prefer to have in your pocket; a fiat currency with no intrinsic value and backed by nothing or pure Gold and -Silver with an intrinsic value determined by the market?<\/span><\/p>\n<p>Before following any investing advice, always take your investment horizon and risk tolerance into consideration and keep in mind that the price of Gold, Silver and other precious metals as well as the stocks of their producers can be very\u00a0volatile and that sharp corrections may happen in the short term.<\/p>\n<p>Yours Sincerely,<\/p>\n<p>Eric Panneflek<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dear\u00a0PGM Capital\u00a0Blog readers, In this weekend blog edition, we want to discuss with you some of the most important events that happened in the global capital markets, the world economy and the world of money in the week of June 10th 2013.: Japan Nikkei 225 Index fell 843.94 points or 6.35 percent on Thursday,\u00a0June 13<a href=\"https:\/\/www.pgmcapital.com\/nl\/the-week-of-june-10-2013-in-review-ongoing-market-manipulation\/\">[&#8230;]<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,8,24,10,11,19,12,13,15,16,1,17,18],"tags":[],"class_list":["post-7520","post","type-post","status-publish","format-standard","hentry","category-commodities","category-debt-crisis","category-energy","category-eric-panneflek","category-euro","category-financial-news","category-inflation","category-market-volatility","category-pgm-capital","category-precious-metal","category-uncategorized","category-us-dollar","category-world-economic-outlook"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/7520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=7520"}],"version-history":[{"count":0,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/7520\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=7520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=7520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=7520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}