5 Incredible Charts Covering Gold To The “Surprise Index”

Today the man who provides macro research and commentary to many of the largest financial institutions and top hedge funds around the world sent KWN 5 incredible charts illustrating covering everything from gold to the “surprise index.” Eric Pomboy, who is founder of Meridian Macro Research, and whose sister Stephanie Pomboy appears in Barrons, also provided tremendous commentary to go along with the 5 stunning charts, as well as what all of this means going forward.

By Eric Pomboy Meridian Macro Research

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July 10 (King World News) – Gold & Silver Charts Of The Day

“The COT data for week ending 7/2 show a 35% reduction in Net Commercial Position to ‐22,776 contracts … the least Net Short reading since Jan 8, 2002 when gold was $279/oz. With a Net Long reading not far off, a significant upside reversal for gold is clearly in the works.

Regarding Friday’s Payroll Report, things are not as rosy as the headline data suggest. First, 195k jobs added sounds like a solid number … but it’s only 79k jobs above the (6mo. average) of Population Growth. Second, if you look at the gap between U6 and U3 number of unemployed (chart below), the monthly change was a staggering +786k persons … the largest monthly jump since December 2008 (+800k), thus the rise in U6 rate from 13.8% to 14.3%.

Third (next chart), the number of full‐time employed dropped by ‐240k, bringing full‐time employed as % of Total Labor Force to 74.4% … still in historically low territory and indicative of a very uneven labor force (full/part time) composition. In the last 3.5 years, 5.43 million full‐time jobs have been created. In order to reach a more ‘ideal’ 79‐80% over the next 4 years (factoring‐in population growth), we’d have to create about 12 million full‐time jobs, or 250k jobs per month … which seems highly improbable. Considering full‐ time jobs dropped ‐240k and part‐time jobs jumped +360k for June, we’re clearly moving in the wrong direction.

Also, the total of Non‐Full Time employed is at a fresh historic high as of the June data…up +400k to over 28 million people. The takeaway from these numbers is: we could get to 6.5% (or even 5.5% or lower) headline U3 unemployment rate in the next few years, yet based almost entirely on part‐time job creation. None of this is good news, as quality of jobs is clearly more important than quantity….

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/10_5_Incredible_Charts_Covering_Gold_To_The_Surprise_Index.html

We Are Witnessing Historic & Shocking Events In Gold

With gold and silver skyrocketing and the U.S. dollar plunging, today the man who first spotted the historic LBMA backwardation told King World News that we are now witnessing shocking and earth-shattering events in the gold market.  Incredibly, last Monday James Turk was the first person in the world to expose the historic backwardation event at the LBMA and King World News was the first to report on it.  Other sites soon followed suit by covering this earthshaking event, but today the man who first spotted it tells KWN readers around what to expect next as these incredible and historic events unfold and the gold market catches fire.

Turk:  “Eric, when I told you early on Monday that something shocking had taken place in the gold market, it really was an earthshaking event and we are seeing the results of that now.  It was clear that there was going to be an explosion higher in gold and silver because the prices simply could not be sustained at those critically low levels.

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So there was going to have to be a catalyst and today was the first of many that are still to come….

“Bernanke has come out after-hours with some statements in a speech and it’s created this explosion in the prices of gold and silver, and the U.S. dollar appears to be in freefall.

I believe that gold has been in backwardation for quite some time, but it’s been hidden because interest rates have been manipulated.  So when I pointed out early Monday that the LBMA reported official gold backwardation, that was truly an earthshaking event.

While many sites then jumped on the bandwagon and interpreted this event in different ways, the reality is that it revealed that there is a shortage of physical gold at these prices.  So it is not at all surprising to me that the price has risen as sharply as it has, because those desperate to get their hands on physical gold are now bidding up the price as we speak.

This is a desperate attempt to get entities to part with their physical gold and take paper currency instead.  In my view it’s going to take much, much higher prices to get these entities to part with their physical gold, if they are willing to part with it at all.

The reality is that all of the physical gold is now in extremely strong hands after the latest shakedown.  So tricking people into parting with it might prove to be an incredibly difficult, if not impossible task.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/11_Turk_-_We_Are_Witnessing_Historic_%26_Shocking_Events_In_Gold.html

Price Destruction In Gold & Silver Will Be A Distant Memory


On the heels of the surge in gold and silver, today acclaimed money manager Stephen Leeb told King World News the price destruction we have seen in gold and silver will soon be a distant memory.  Leeb also spoke with KWN about the desperation by the West to suppress the price of gold and how it is about to fail.

Leeb:  “My thoughts are that Bernanke surprised me last night.  He came across as very dovish, and this is a man that knows exactly what he is doing.  He doesn’t speak without thinking about what he is saying and what effect it will have.  So you have to ask yourself, why was he so concerned about getting across a message that the Fed is still quite dovish, and highly likely to continue for quite some time with QE?….

“There are a couple of reasons:  One is the economy is not nearly as strong as what has been painted in the press.  So the economy is still in recession.  The other concern Bernanke has is that the U.S. dollar has been very strong.  Any suggestion of cutting back has seen the dollar surge and that is not what the Fed wants.  So the Fed is trying to talk the dollar down.

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In that environment, how can investors not be bullish on real stores of value?  Whenever a country’s currency strengthens, they immediately do whatever they can to bring the value of their currency down.  So gold and silver are starting to surge once again.

I have to tell you that I don’t think the West has given up yet on trying to hold gold down.  But right now you have backwardation in gold and that’s rarely ever seen.  This is only seen when there is a shortage of gold.  Where is that shortage of gold?  In the West.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/11_Price_Destruction_In_Gold_%26_Silver_Will_Be_A_Distant_Memory.html