Summary: The Doc’s expertise and passion in finance, economics, and market history was developed over years of intense self-education. With his doctorate in the medical field, The Doc now seeks to help the common man restore his financial health by investing in physical gold and silver.
The financial media would have you believe that everyone and their dog has given up on the precious metals market. But as Peter Schiff humorously remarked the last time we were down at these levels: The PM bull market is dead! Long live the PM bull market! On this week’s show, we discuss the recent action in the metals & markets, including: Testing of $22/silver and $1320/gold next week, with the potential for a capitulation spike low as soon as Sunday's Globex session- silver could see a spike low to $18-$20, & gold a $1200 handle Examination of fundamentals: Nothing has significantly changed Physical versus paper demand trends in both the West and Asian markets George Soros and another documented case of financial media spin By The Doc & Eric Dubin When examining physical off-take of gold in Asia, demand dwarfs the number of real and hypothecated paper ounces being "sold" out of the combined Western-based LBMA, the COMEX and the total exchange traded product universe. We note "sold" in quotation marks because the story gets even more convoluted when examining instruments like GLD. For example, a hedge fund could easily take delivery of physical gold associated with GLD shares and stash physical bullion in a private vault without the need to report the second half of that transaction under 13F SEC filing requirements. While we can't be certain just how many ounces have moved into private vaults via this transmission mechanism, it's most certainly the case that not all of the trumpeted sales out of GLD have in fact been actual, net sales. But don’t hold your breath waiting for the financial media to report this fact. Speaking of our dear friends in the mainstream media, you have no doubt read about George Soros selling part of his GLD position for the quarter ending March, 2013. What you haven't heard from anyone is that Soros Fund Management, LLC actually INCREASED its net exposure to gold. Yes, that's right. We have a lie of omission by the lapdog financial media. I pulled the raw numbers of out the SEC’s EDGAR database today to fact-check all the mainstream reportage and was surprised to see an increase in GDX and GDXJ mining share ETF positions that more than offset the relatively small reduction in Soros’ GLD. Even more to the point, mining shares are a leveraged bet on bullion, and Soros even trimmed positions in GDXJ and replaced it with a greater leveraged position in the form of call options tied to the GDXJ. Visit Google’s news search engine and execute a search for SOROS GOLD. Just prior to recording this evening’s show the results were telling. There was only one small mention of Soros linked to GDX and the story actually had the numbers wrong and was basically speaking to the risk of being exposed to mining shares. The overwhelming reportage this week about Soros has been about his sale of GLD as proof that the gold (and silver) bull market is dead. Never mind the fact that Soros increased his exposure to gold related assets. We also discussed gold's monthly chart, and the fact that gold is just now touching the long term up-trend line: We’ll be diving into the numbers behind this paper versus physical dynamic in the days ahead. Stay tuned. But for now, without further delay, enjoy this week’s show! -- Eric Dubin Everyone knows that staying updated with precious metals news is a chore in itself, which is why SilverDoctors has created our very own browser add-in toolbar to help you stay better informed. The toolbar supports the three major browsers: Firefox, Chrome and Internet Explorer, and when installed, will add built in functionality to your browser directly below the address bar showing you trending RSS links, provide you the ability to search the SilverDoctors site and give you a link directly to our home page. Click the free install button to install the SD Toolbar => Gold Eagles As Low As $69.
Turd Ferguson of TFMetalsReport.com joins Eric & The Doc this week as a special Gust Host on the SD Weekly Metals & Markets! On this week’s show, we’ll cover a number of topics, including: The Doc’s recap of physical market trends and the continuing physical gold & silver shortage Massive and unprecedented physical demand in Asia, coinciding with a historic draw-down in GLD inventory Prospects for a summer rally in bullion TF discusses a massive shift in the silver COT, as the commercials have doubled their long position since QE∞ was announced SD Weekly Metals & Markets with Guest Host Turd Ferguson