Tim Iacono – Mon 15 Sep, 2014

The Dollar Is Crushing Gold – Could The Fed Change That This Week?

In Tim’s recent post he focuses on the following

  • The strengthening dollar has been the most important factor in recent gold and silver price declines.
  • This week’s Fed meeting could halt the dollar’s rise and give metal prices a boost.
  • Demand for precious metals in Asia is improving but safe haven demand appears to have ebbed.

Some other interesting stats that Tim brings up deal with the gold and silver ETFs in the US, GLD and SLV. For GLD 14 tonnes of gold left the ETF leaving the year-to-date outflows almost flat at 10 tonnes. The story is very different for SLV. In the first week of September 52 tonnes entered the ETF and last week 100 tonnes were added! Maybe this is the start of western demand coming back…

Click here to read Tim’s post.

Tim Iacono

  1. On September 15, 2014 at 2:15 pm,
    CFS says:

    BS, the dollar is not crushing gold.

    If that were true the inverse dollar – gold correlation would be close to unity, and it is NOT.

    • On September 16, 2014 at 3:34 am,
      Birdman says:

      So why is gold falling then?

      • On September 16, 2014 at 7:45 am,
        CFS says:

        Is it falling or bottoming?

  2. On September 15, 2014 at 2:23 pm,
    CFS says:

    It is a fact that there had been significant demand coming from China.
    It is a fact that bullion banks were raiding the
    Gold in GLD, and that decreased slightly.
    It is a fact that many markets are manipulated.
    But many economies are now in recession, because of the drag of over-regulation and over-taxation. Get used to it…….until the revolution.

  3. On September 15, 2014 at 2:29 pm,
    Birdman says:

    Oops…they do still have a gold section at Seeking Alpha. My mistake. I guess the change of formats had me confused. Same old crap as always though. That part never changed.

    • On September 15, 2014 at 5:17 pm,
      J........THE LONG....................OOTB says:

      like I said Sat. , I do not think anyone at Seeking Alpha is an expert in gold………

      • On September 16, 2014 at 3:32 am,
        Birdman says:

        They have Dave Kranzler…..oops, guess I made your point for you. That guy is hilarious. He has been the most wrong on gold on a consistent basis than anybody I have ever read in my opinion. But don’t say it to him because he seems to have a wicked temper for those who disagree with his crazy theories.

  4. On September 15, 2014 at 3:39 pm,
    CFS says:

    The problem with seeking alpha is that they pay, I believe, for somw of their articles; thus losers are encouraged to write articles.
    (If they actually had significant knowledge, they would not be losers!

    • On September 16, 2014 at 3:39 am,
      Birdman says:

      The gold bugs that populate the place are utterly inconsolable where gold is concerned. The are relentless in their belief it is about to head for the moon. I mean, nothing can change their minds. It is just bizarre how stupid they sound after so many years of non-stop declines.

  5. On September 15, 2014 at 11:52 pm,
    Biggus says:

    Martin Armstrong seems to have a good grasp of whats going on with the global economy and the fed. Here is a couple of comments from a recent interview with Financial Sense…

    ‘Well, basically I think we are headed into going into the end of 2015 is where we are going to get another big, I think, economic crisis. I think that is probably where the sovereign debt crisis comes to a head. But between now and then, unfortunately it just looks like more and more of a bull market for volatility. ‘

    ‘I think that initially we can still see gold consolidate a little bit. I would not expect it to take off dramatically yet.
    Gold will eventually run up dramatically as the crisis in the global sovereignty debt issue more or less percolates up all the way around the world. But – and then you have the possibility of gold going up to like five thousand dollars or something like that.’

    Link to the interview.

    • On September 16, 2014 at 3:29 am,
      Birdman says:

      Right, and by deduction he is suggesting that the DOW will fall to approximately 5000 to 6000 as we approach the bottom of the Dow/Gold ratio chart. That is within sight inside the next three years so it is worth watching closely and preparing for a rough ride at that time. We do need to get out of equities before they peak and move back into precious metals at that time.

  6. On September 16, 2014 at 7:10 am,
    Matt says:

    I see the Fed/bullion banks are facilitating SLV loading up with physical silver by the hundreds of tonnes.
    Shock n awe. Free n fair for all.

    • On September 16, 2014 at 7:47 am,
      CFS says:

      Hundreds of tons?


  7. On September 16, 2014 at 7:55 am,
    CFS says:

    I believe GLD has 790 tonnes of which 750 tonnes are paper.

    SLV has 10,400 tonnes, but again most is paper.

    Certainly China has not been given back the large amount of physical leased back in 2003, and probably has an indirect call on all physical available in SLV and then some.

  8. On September 16, 2014 at 8:03 am,
    Matt says:

    Read the top of the page:
    The story is very different for SLV.
    In the first week of September 52 tonnes entered the ETF and last week 100 tonnes were added!

  9. On September 16, 2014 at 8:28 am,
    CFS says:

    Where does it say it was physical, as opposed to paper?

    I could not find that. I believe it was paper only.

  10. On September 16, 2014 at 8:34 am,
    sally says:

    Follow India & gold purchases.

  11. On September 16, 2014 at 8:43 am,
    Matt says:

    Added 152 tonnes of paper?
    At $18 per oz they have loaded up by theft.
    Same as it ever was.

  12. On September 16, 2014 at 9:43 pm,
    Matt says:

    David Morgan:
    My main core proposition is my mission statement, and that revolves around the fact that fiat money has always failed. And if you do not think it is going to fail this time, then do not listen to this program, and have a nice day.