Radio Show Newsletter
CHARTS OF THE WEEK-QUOTES-QUICK HITS
-CHART OF THE WEEK: A crucial stock market indicator just got its most bullish reading on record. How low can the VIX go? That seems to be the question hedge funds are asking themselves as they continue to bet that the so-called stock market fear gauge will fall further from current near-record-low levels. Positioning on VIX futures, which allow investors to bet on whether or not the stock market will see big price swings, is now the most bearish on record, according to Commodity Futures Trading Commission data going back to 2004. And a bet against the VIX generally translates to a bullish wager on the S&P 500, since the VIX and the S&P 500 tend to move in opposite directions. That means investors are the most confident about further gains in stocks than at any point in more than a decade, at least according to this measure. Read more here-http://read.bi/2sUHuxa and https://bloom.bg/2tlqbbA
-CHART OF THE WEEK: Wage Woes May Leave Australians Struggling to Make Ends Meet. Australians may soon be struggling to make ends meet. With real wages going backward in the first quarter and the developed world’s highest debt-to-GDP ratio after Switzerland, consumers are setting aside less cash for a rainy day: their savings levels have more than halved in five years. Further intensifying the squeeze is a rising cost of living, with electricity prices climbing as much as 20 percent in New South Wales state next month. At stake is the economy’s trajectory: consumption accounts for more than half of gross domestic product, and any long-term weakness in spending will weigh on growth. As to ballooning debt, while the central bank can’t say how high is sustainable, it warns that the deeply indebted can be more sensitive to declines in income “and may respond by reducing consumption sharply.” Read more here-https://bloom.bg/2tjktqq
-CHART OF THE WEEK: Pipeline Pinch Adds to Oil-Sands Woes With Keystone Still a Hope. Call it the pipeline pinch, or maybe the Keystone quagmire. While plans by Canadian companies from Suncor Energy Inc. to Canadian Natural Resources Ltd. to boost oil output are racing to fruition, the construction of three pipelines needed to move that product to market, including the infamous Keystone XL, is lagging years behind. The end result: Producers have little choice but to move those extra barrels by train, with costs two to three times higher than pipeline shipping.
It’s an unwelcome added expense after oil plunged about 20 percent from this year’s peak. Futures prices have settled in below $45 a barrel, after many predicted it would rise to $60. “We’re not going to see significant new pipeline capacity until late 2019 or 2020,” said Nick Schultz, vice president for pipelines and regulatory matters at the Canadian Association of Petroleum Producers. In the meantime, the extra expense for shipping “impacts royalties and other things that impact the public.” During the Barack Obama administration, oil-sands producers feared a future when they would have to rely heavily on costly railway shipments if he didn’t approve Keystone XL. That may start this year. Read more here-https://bloom.bg/2s21QDw
-Deutsche Bank AG was not the only international lender found to have conducted “mirror trades” to circumvent regulations and send money out of Russia in the last few years, the Bank of Russia said, declining to name other institutions involved. The regulator said in a statement to Bloomberg that it had found about 750 billion rubles ($13.5 billion at average exchange rates over the period) in the transactions from 2014 to 2016, but didn’t break down the figure by individual banks. Deutsche Bank’s internal investigation found about $10 billion in trades through its Moscow office from 2011-2015. Though the new data suggest Deutsche Bank may have been the largest user of such transactions, the central bank’s statement that other foreign institutions were also involved highlights how pervasive illicit dealings are in Russia, where hundreds of billions of dollars have flowed out of the country in the last two decades. Bloomberg
–Deutsche Bank AG, the German lender seeking to overhaul how it manages risks, made a bet on U.S. inflation that puts the firm on course to lose as much as $60 million, people familiar with the matter said. The trade used derivative products tied to U.S. inflation, said the people, who requested anonymity because the details aren’t public. The Frankfurt-based lender has been examining whether Deutsche Bank traders breached risk limits on the deal, some of the people said. The case has been escalated to the bank’s supervisory board, one person said. Bloomberg
–Staples agreed to be acquired by Sycamore Partners for about $6.9 billion. The company announced Wednesday that it entered a merger agreement with the private-equity firm in which its shareholders will receive about $10.25 per share in cash. According to Reuters, Sycamore won an auction for the office-supplies retailer that reported a 7.1% drop in retail revenue last year. Staples scrapped a merger with Office Depot in May 2016 that would have given it more muscle to compete with online retailers. Businessinsider
-Italy has committed as much as 17 billion euros ($19 billion) to the intervention at Banca Popolare di Vicenza SpA and Veneto Banca SpA, the two banks which the ECB said on Friday were failing or were likely to fail. The bill includes state support for Intesa Sanpaolo SpA of 5.2 billion euros to allow it acquire for just 1 euro the good assets in the banks without hurting capital ratios, with an additional 12 billion euros available to cover potential further losses. Intesa rallied 4 percent, with the country’s banks posting strong gains. Mayoral elections over the weekend in Italy showed that Silvio Berlusconi is still a force in the country’s politics after candidates backed by his Forza Italia party and its center-right allies made strong gains. Bloomberg
-Canada’s currency is back above 76 cents U.S. What’s particularly impressive is that it’s holding above that level, at least for now, despite oil trading lower this morning on the back of yesterday’s inventory report from the American Petroleum Institute. No doubt there’s still a big Canadian discount on the dollar, but it was only a few weeks ago that it was hovering around 73 cents U.S. We’ll consider whether the recent run is enough to change behaviour (both for consumers and business leaders), and how much the dollar has riding on the Bank of Canada’s rate decision on July 12. BNN
-“The stock market seems to be running pretty much on fumes,” San Francisco Federal Reserve Bank President John Williams said in an interview carried on Sydney’s ABC News affiliate and available on the internet on Tuesday. “It’s something that clearly is a risk to the U.S. economy, some correction there it’s something we have to be prepared for to respond to if it does happen.” Williams, who is giving a series of talks in Australia, said that for his part he doesn’t believe any Trump fiscal policies will begin to affect the economy until 2018 or 2019. Businessinsider
-“We’re heading for an expiration of the debt ceiling and running out of cash that will create an enormous crisis by August or September. They’re not going to be able to cope with it.” “I think the odds by the day are increasing that we’re going to have a government shutdown. Expect the mother of all debt ceiling crisis. The market is utterly unprepared and it really is the orange swan that is about ready to take Wall Street by surprise.” David Stockman
-It’s going to end ‘extremely badly,’ with stocks set to plummet 40% or more, warns Marc ‘Dr. Doom’ Faber. If the man often hailed as the original “Dr. Doom” is right, the stock market could see another “lurch” higher at which point investors may want to cash out quickly and run for cover. Marc Faber, the editor of “The Gloom, Boom & Doom Report’ and a perennial bear, isn’t backing down from his latest dire prediction that would send stocks plummeting by 40 percent or more. A drop of that size could take the S&P 500 Index down from Friday’s closing price of 2,438 to 1,463.
He used the meteoric rise of FANG stocks, which reflects Facebook, Apple, Netflix and Google (Alphabet), as a glaring bearish signal. “We’ve had more than eight years of a bull market. The Nasdaq is being driven by very few stocks,” said Faber on Friday’s “Trading Nation.” That rally “is not a particularly healthy sign from a technical point of view, and valuations are very high,” the investor added. Faber’s comments come exactly two weeks after the Nasdaq set its latest intraday record high of 6,341.70. “You know we have a lot of volatility, and when things will start to go down, they’ll go down a lot,” he said. Faber is deeply concerned that wealth has flowed to big corporations and affluent people. He believes the imbalance could eventually disrupt the markets as we know it.
“Either people with money will be taxed heavily or we’ll have a massive deflation in asset prices I repeat: massive,” he warned. “Eventually the system will break.” Faber is known for correction calls over the years which have never materialized. But he’s sticking by his latest call, acknowledging critics have “questioned my sanity.” “We could print enough money that the Dow goes to 100,000. All I’m saying is it will end very badly, extremely badly,” he said. Read more here-http://cnb.cx/2tPY5lX
-Madoff Whistleblower Harry Markopolos Says U.S. Government Is A Giant Ponzi Scheme, A Full-Blown Panic Is Coming And Journalism Is Dead. Read more here-http://bit.ly/2t2ApKN
-Great recession fears as bankers warn next global crash could arrive ‘with a vengeance.’ Next major recession could be brewing in countries like China, a new report warns. A new financial crisis is brewing in the emerging economies and it could hit “with a vengeance”, an influential group of central bankers has warned. Emerging markets such as China are showing the same signs that their economies are overheating as the US and the UK demonstrated before the financial crisis of 2007-08, according to the annual report of the Bank for International Settlements (BIS). Claudio Borio, the head of the BIS monetary and economic department, said a new recession could come “with a vengeance” and “the end may come to resemble more closely a financial boom gone wrong”. Read more here-http://ind.pn/2rWe2Fy
-Illinois in danger of entering financial ‘death spiral.’ Illinois could go down in history as the first U.S. state with a “junk” credit rating. The rating firm Standard & Poor’s says it will probably give the state that embarrassing distinction if lawmakers fail to reach a budget deal by the start of the fiscal year on July 1. It would be the third straight year Illinois can’t pass a budget. Illinois is already in a severe budget crisis, with $15 billion in unpaid bills, a quarter-trillion dollars owed to public employees and cash levels so low that soon it won’t be able to pay lottery winners. A downgrade could make things even worse by causing borrowing costs to rise and giving investors even more reason to avoid its debt.
“Illinois is now at risk of entering a negative credit spiral,” Standard & Poor’s warned on June 1. Illinois already has the dishonor of being the state with the lowest credit rating, which is like a credit score for major companies and governments. Neither S&P nor Moody’s has ever downgraded a U.S. state to “junk,” a rating that signals heightened risk of default. Some struggling cities and counties have lost their investment-grade ratings in recent years. Stockton, California, and Detroit were downgraded to junk before they filed for bankruptcy in 2012 and 2013, respectively. Puerto Rico was cut to junk in 2014 ahead of its bankruptcy earlier this year. Read more here-http://fxn.ws/2tgfozq and http://cnnmon.ie/2rYODuV
-Italy is pouring billions more into its troubled banks. Italy is putting up €17 billion ($19 billion) to avert a fresh crisis in its beleaguered banking system. The move over the weekend came after a warning from European authorities that two struggling Italian regional banks Banca Popolare di Vicenza and Veneto Banca were facing collapse. It’s just the latest move by Italy to plug a hole in its fragile financial sector. At the end of last year, it had to promise billions of euros to rescue Monte dei Paschi, the world’s oldest operating bank. Read more here-http://cnnmon.ie/2tj0053 and https://bloom.bg/2sP113z
-IMF Cuts U.S. Outlook, Calls Trump’s Growth Target Unlikely. The International Monetary Fund cut its outlook for the U.S. economy, removing assumptions of President Donald Trump’s plans to cut taxes and boost infrastructure spending to spur growth. The IMF reduced its forecast for U.S. growth this year to 2.1 percent, from 2.3 percent in the fund’s April update to its world economic outlook. The Washington-based fund also cut its projection for U.S. growth next year to 2.1 percent, from 2.5 percent in April.
The world’s biggest economy will probably have a hard time hitting Trump’s target of 3 percent annual growth as it’s faced with problems ranging from an aging population to low productivity growth, and with a labor market already back at full employment, the fund said in its annual assessment of the U.S. economy released Tuesday. Given broad uncertainty on policy, “we have removed the assumed fiscal stimulus from our forecast,” Alejandro Werner, director of the IMF’s Western Hemisphere Department, said at a press briefing in Washington. Read more here-https://bloom.bg/2sjbJM8 and http://cnnmon.ie/2tllq1I
-$3.7 Billion Hedge Fund: This market doesn’t make any sense. The stock market’s seemingly endless gains don’t make much sense, according to a $3.7 billion hedge fund. More than eight years into the market’s latest bull cycle, the second-longest on record, stocks have rallied notably since President Trump was elected in November. “People are just paying significantly more for assets without any fundamental improvement in those assets,” Tourbillon Capital’s Jason Karp wrote in a recent letter to investors that was reviewed by Business Insider. Karp was referring to stocks’ gains in the first quarter, which were heavily marked by tech. He wrote that “greater than 100% of the return came from multiple expansion without any corresponding revision upwards in earnings.” He added: “It was often the most crowded securities with the most undeniable themes that fared the best in Q1, as big multiples got bigger while fundamentals remained the same.” Read more here-http://read.bi/2rVnWqW
-Store closings have tripled so far, this year. Stores are closing at alarming rate. The number so far, this year is triple what it was in the same period last year, according to an analysis by Fung Global Retail & Technology, a retail think tank. There have been 5,300 store closing announcements through June 20, making it the second worst year on record at the six-month mark. The worst year ever for store closings was 2008 during the Great Recession, when Credit Suisse counted 6,163 closings. But 2017 is poised to easily surpass that. Read more here-http://cnnmon.ie/2saMIrt
-Sears Canada is closing a quarter of its stores here’s the full list. Sears Canada is closing 59 stores and laying off 2,900 employees under a court-supervised restructuring. The company is closing 20 full-line department stores, 15 home stores, 10 outlet stores and 14 Hometown locations. Sears announced the closures on Thursday after it was granted court protection from its creditors. The closures represent about a quarter of the stores that the company operates in Canada under the Sears and Corbeil banners. Sears Canada said Thursday that it has made progress toward reinventing its brand, but is running out of cash and needs more time to turn business around. Read more here-http://read.bi/2tj9X2n
-Half of Americans are spending their entire paycheck (or more). Nearly half of Americans say their expenses are equal to or greater than their income, according to a new study from the Center for Financial Services Innovation. And for those 18 to 25 the percentage is over half, up to 54%. “Half of America has no financial cushion,” says Jennifer Tescher, president and CEO of CFSI, which released the study. “They are living really close to the edge.”
Of the 25% who say they have too much debt, 96% report being stressed. This kind of financial stress has lasting health effects for those constantly working to cover the nut, says Tescher. “We can’t deal with their health problems if we can’t deal with their financial health.” With one out of every two people maxed-out with expenses, it is likely you or someone you know. “It’s your co-workers, the receptionist, the guy mowing your lawn, the woman who takes care of your kids.” Maybe it’s you. Read more here-http://cnnmon.ie/2thpUWV
-A Second, Even Bigger Foreclosure Reaches NYC Billionaires’ Row. Another luxury condo at Manhattan’s One57 is scheduled for a foreclosure auction the second time in a month that a property seizure is being sought at the Billionaires’ Row tower following a mortgage default. And it might be the biggest in New York City residential history. Apartment 79, a full-floor penthouse that was the eighth-priciest sold in the building, is scheduled for auction on July 19, according to real estate data firm PropertyShark. The owner of the condo, a shell company listed in public records as One57 79 Inc., bought the 6,240-square-foot (580-square-meter) residence in December 2014 for $50.9 million, according to New York City records.
In September 2015, the company took out a $35.3 million mortgage from lender Banque Havilland SA, based in Luxembourg. The full payment of the loan was due one year later, according to court documents filed in connection with the foreclosure. The borrower failed to repay, and now Banque Havilland is forcing a sale to recoup the funds, plus interest. “It’s probably the most-expensive foreclosure we’ve ever seen in luxury development,” said Donna Olshan, president of high-end Manhattan brokerage Olshan Realty Inc. “I don’t know of a foreclosure that’s larger than that.” Read more here-https://bloom.bg/2tPvugh
-Surging Prices for New U.S. Homes Suggest Tight Low-End Supply. Low mortgage rates, a solid labor market and rising wages continue to drive steady demand for housing while scarce inventory sends prices to the highest ever, a trend that could squeeze first-time buyers. The industry faces headwinds including a lack of available workers and a limited number of plots to build on. Even with the gain, the pace of sales remains at less than half the peak seen in 2005. Any supply rebound may be a ways off, as new-home construction starts are down in recent months and permits were at a one-year low in May, according to government data. Read more here-https://bloom.bg/2tVaGEi
-Google Gets Record $2.7 Billion EU Fine for Skewing Searches. Google’s record-breaking 2.4 billion-euro ($2.7 billion) European Union fine could end up being just a fraction of the costs from the EU’s demand that it stop skewing search results to favor its own shopping site. While the penalty will barely make a dent in its $90 billion cash hoard, Google faces the prospect of less ad revenue and a regulatory backlash targeting other services from maps to restaurant reviews as well as the threat of even more penalties. The search-engine giant will have “the sword of Damocles hanging over its head,” said Jay Modrall, a lawyer for Norton Rose Fulbright in Brussels. That’s because it’s no longer Google’s choice on how it makes changes to allay EU concerns. Instead, it’s “under a legal requirement to do so and under notice that if its commitments are not sufficient, it’ll be fined even more.” Read more here-https://bloom.bg/2ufilwx and http://cnnmon.ie/2sjvuTR
-Infamous De Guine estate finally sells at dramatic discount. We’ve visited and revisited the De Guigne estate over the years, watching its drama unfold. Now, finally, the 16,000-square-foot mansion in Hillsborough has sold for $29.85 million, and at such a dramatic discount from its original list price of $100 million that this story’s end makes for good real-estate gossip. Read more here-http://bit.ly/2sKSdvw
-Vancouver Mansion Lists for Record $48 Million. A waterfront mansion on a Vancouver street known as Billionaires’ Row is on the market for C$63 million ($48 million) a record listing in a market where rapid home-price gains are seemingly unstoppable. Perched above a popular beach, the manor features expansive views of downtown Vancouver and snow-capped mountains across the bay. It’s owned by local business titan Joseph Segal and his wife, Rosalie, who are well-known as philanthropists in the city. The asking price is the highest ever for a residential single-family home listed in Greater Vancouver, according to Sotheby’s International Realty Canada, which represents the sellers. Read more here-https://bloom.bg/2sblroY
-Hong Kong Warns: Its housing bubble is a ‘dangerous situation.’ The Hong Kong dollar is pegged to the US dollar. Hong Kong’s monetary policy is follows the Fed’s monetary policy. The Fed has embarked on a tightening cycle, raising rates four times so far. The Hong Kong Monetary Authority has followed each time. Last week, it raised its policy rate by 25 basis points to 1.5%. This will have consequences for the most expensive and ludicrously inflated housing bubble in the world. “We have to warn our people about the dangerous situation of the property market at the moment,” Hong Kong Financial Secretary Paul Chan told Bloomberg TV . “No one can tell how deep the adjustment will be or what is the appropriate level of adjustment because it is market force,” he said. “It is not up to the government to dictate, but I think it is important for people to recognize it is risky.” Read more here-http://read.bi/2tiMVZi
-Low interest rates have ‘done their job,’ says Bank of Canada’s Poloz. Central bank’s next interest rate announcement is due July 12. The governor of the Bank of Canada says it looks like low interest rates put in place in 2015 have “done their job” but he stopped short of predicting the central bank’s next move. Stephen Poloz said in an interview broadcast on business news channel CNBC that the Canadian economy has been recovering from the global financial crisis that erupted in 2008 and the sudden decline in oil prices that began in late 2014.
The Bank of Canada’s next interest rate announcement is set for July 12 when it will also release an updated outlook for the economy in its monetary policy report. Poloz made the comments in Portugal, where he’s participating in a forum hosted by the European Central Bank. He says virtually every major area of the world seems to be gaining economic momentum with the United States “way out in front.” He says the drop in oil prices set Canada’s economy back causing the Bank of Canada to compensate by lowering interest rates but growth has returned to a more normal pace. Read more here-http://bit.ly/2uiemPT
-When the Bitcoin Bubble Bursts. Financial markets are frothier than a millennial’s 3-D latte. Investors are scrambling to throw money at Argentina, Vice Media and George Clooney’s tequila. Only the crypto-currency craze seems to give us comfort there are worse bubbles out there. One bitcoin is now worth $2,677. The latest warning against digital currencies comes from Aberdeen Asset Management’s top venture capitalist, Peter Denious. He blames a feeding frenzy of speculation for the explosion in prices and new coins.
“A lot of lessons will be learned and a lot of money will be lost, before a lot of money can be made,” he told Bloomberg News. “It’s a gold-rush mentality.” Denious is right to say that the market is speculative and unsustainable. Despite recent price wobbles, Bitcoin has almost tripled year-to-date, to $2,677. Its closest rival, Ether, is now worth more than 40 times its end-2016 level of $8. This isn’t because people are using crypto-currencies to buy homes or cars, or because regulators suddenly like them. It’s seen as a way to make money. Read more here-https://bloom.bg/2ugdawg
-Here’s how much money Americans think is enough to live comfortably. According to a new survey from Charles Schwab, Americans say it takes an average of $2.4 million to be considered “wealthy.” As for how much it takes to be “financially comfortable,” survey respondents say it’s an average of $1.1 million. Read more here-http://cnb.cx/2sYJuEM
-George Clooney’s tequila company just sold for $1 billion here’s the story of how it was set up by accident. George Clooney’s success in the world of Hollywood is well known as are his efforts in political activism and humanitarian work. A lesser known fact is that the actor and two friends founded one of the fastest-growing tequila brands in the world by accident in 2013. That company is Casamigos, which was just sold to Diageo for up to $1 billion in a transaction set to close during the second half on 2017. Diageo is set to pay $700 million initially, with the potential of another $300 million based on the tequila’s performance over 10 years, according to CNBC. Read more here-http://read.bi/2ufxaz9 and https://bloom.bg/2tiwLz5
-Visitors threw $1.5 million into Rome’s Trevi Fountain last year here’s where all those coins go. It may seem a silly tourist attraction, but millions of visitors flock to the 18th-century landmark each year to partake in the tradition. In fact, the fountain fills up so quickly that Rome’s city workers sweep its floor every night to collect the day’s loot. Throughout 2016 they collected $1.5 million, according to NBC News, money that has long been sent to Caritas, a Catholic nonprofit that supports causes around the world related to health, disaster relief, poverty, and migration. Read more here-http://read.bi/2ubuXoe
-“Diamonds are a portable, alternative store of savings and wealth that are being increasingly utilized for diversification. And in a new and uncertain world, where surprises will continue to catch us off-guard, portability should absolutely be understood as diversification. The ability to easily move savings and wealth is not a feature of precious metals, real estate or most collectibles, but it is for diamonds.” Joseph Lipton, CEO of Secured Worldwide
-“Another high-class area of transportable tangibles is diamonds. You can hide $10 million dollars worth of diamonds in the cuff of your trousers.” Richard Russell
-“Jewelry is an investment you can wear for 30 years and then sell. What else can you do that with?” Chris Del Gatto jewelry expert
-The notion of stones and jewelry as an asset class is one that has only recently caught on in America. To illustrate his point Bill Noble of Dallas’s William Noble Rare Jewels points to the Shirley Temple Diamond, a 9.54-carat Fancy Deep Blue purchased in 1940 for $7,210 and recently valued at $25 million to $35 million. “Americans have been the last to understand that gemstones provide a concentrated form of wealth that comes close to a true currency, because they’re rare, transferable, durable, and portable.” Legends of Russian and French aristocrats fleeing revolution with diamonds sewn into their hems still resonate. “I know people who want to buy some diamonds to put away. They know in uncertain times they can sell them quickly,” says jewelry expert Chris Del Gatto, whose eponymous firm specializes in buying and selling from private collections. He has bought and sold more pieces than almost anyone on the market. “They also know they can take the stones with them. You can’t do that with a building. It’s a bunker mentality.” Townandcountrymag.com
-Sotheby’s Magnificent Jewels and Jadeite Auction, April 04 2017 Hong Kong China. Auction Results Here-http://bit.ly/2t2jsAb
-The Pink Star: One of the World’s Great Natural Treasures. April 4 2017 in Hong Kong, Sotheby’s set a new world auction record for any diamond or jewel when the Pink Star, a 59.60-carat oval mixed-cut Fancy Vivid Pink Internally Flawless diamond, sold for HK$553 million US$71.2 million. The Pink Star was acquired by renowned jeweller Chow Tai Fook, with the winning telephone bid placed by Dr. Henry Cheng Kar-Shun, Chairman of the company. The Pink Star has been renamed CTF PINK STAR in memory of the late Dr. Cheng Yu-Tung, father of the current chairman and founder of Chow Tai Fook, and commemorates the esteemed brand’s 88th anniversary.
The CTF PINK STAR, a 59.60-carat oval mixed-cut pink diamond, is the largest Internally Flawless Fancy Vivid Pink diamond that the Gemological Institute of America (GIA) has ever graded. It has received the highest colour and clarity grades from the GIA for pink diamonds and has been found to be part of the rare subgroup comprising less than 2% of all gem diamonds known as Type IIa: stones in this group are chemically the purest of all diamond crystals and often have extraordinary optical transparency. Mined by De Beers in Africa in 1999, the 132.5-carat rough diamond was meticulously cut and polished over a period of two years and transformed into this stunning gemstone. See more here-http://bit.ly/2qkqoq0
-Lot 1784-World Auction Record Price-per-carat for a Fancy Intense Blue Diamond. A Fancy Intense Blue Diamond and Diamond Ring. Set with an emerald-cut fancy intense blue diamond weighing 3.13 carats, flanked by two step-cut diamonds, to the circular-cut diamond-set oval band, the diamonds weighing approximately 2.50 carats in total, mounted in white gold. Ring size: 5¼. Accompanied by GIA portrait report numbered 10095242, dated 13 December 2016, stating that the 3.13 carat diamond is natural, Fancy Intense Blue Colour, Internally Flawless; also accompanied by diamond type classification report stating that the diamond is determined to be a Type IIb diamond. Estimate-3,861,000-5,148,000. Lot sold 4,790,858 USD. See more here-http://bit.ly/2tmq7rF
-Mirror of the Sky: Blue diamonds bear the most spectacular and enchanting hue with their serene and tranquil shades of the sky. What makes these fascinating gems a true rarity is the combination of various dynamic yet sophisticated conditions; an uncontrollable force of nature that is perfected through the pinnacle of craftsmanship.
According to a GIA study, only 0.3% out of all the coloured diamonds submitted to the laboratory are predominantly blue, and a mere 10% of these exceptional discoveries would be larger than a carat. The natural exclusivity of these precious gemstones has only flamed the passionate desires of the connoisseurs throughout the centuries.
The legendary 45.52 carat Hope Diamond was professedly unearthed from the famed Golconda mines to reveal its glory, enticing the imaginations of many. True objects of desire, these remarkable and fascinating gemstones have repeatedly achieved record-breaking prices. Recently the 12.03 carat ‘Blue Moon of Josephine’ offered by Sotheby’s Geneva in November 2015 set a new world auction record for any gemstone per carat, fetching a stunning US$4 million per carat.
Blue diamond’s truly charming colour is often due to traces of boron in the crystal structure, placing these blue diamonds as Type IIb in the diamond type classification system. Due to this condition, faceting process demands extreme care and precision, as a result of the asymmetry of carbon atoms in Type IIb diamonds. There is zero tolerance for miscalculation; any minute error would result in a loss of colour and destruction of the beauty.
Lot 1784 offered here stands as a proud masterpiece that has been gifted with the hues of the sky and sea, perfected through an emerald-cut that is bold and distinctive – an attractive and even colour distribution only realised through savoir-faire craftsmanship. This internally flawless 3.13 carat fancy intense blue diamond, dazzling in its magnificent charm, is a genuine classic, certainly not to be missed by the most discerning collectors.
-Lot 1696-Important Fancy Orangy Pink Diamond and Diamond Ring. Set with a cut-cornered rectangular modified brilliant-cut diamond weighing 11.44 carats, to the pavé-set circular-cut diamond shoulders, mounted in 18 karat white and pink gold. Ring size: 6, illustrated unmounted. Accompanied by GIA report numbered 5172502694, dated 19 October 2016, stating that the 11.44 carat diamond is natural, Fancy Orangy Pink Colour, VS2 Clarity. Estimate-2,277,990-3,217,500. Lot sold 2,792,790 USD. See more here-http://bit.ly/2s3BGQO
-Lot 1786-Fancy Intense Purple-Pink Diamond and Diamond Ring. Set with a heart-shaped fancy intense purple-pink diamond weighing 3.30 carats, embellished with circular-cut diamonds, mounted in platinum and 18 karat white gold. Ring size: 6. Accompanied by GIA report numbered 13456158, dated 23 March 2007, stating that the 3.30 carat diamond is natural, Fancy Intense Purple-Pink Colour, VVS2 Clarity. Please note that the report is more than (10) years old and might require an update. Estimate-2,316,600-3,217,500. Lot sold 2,561,130 USD. See more here-http://bit.ly/2uk6Nbf
-Lot 1685-Fancy Vivid Purplish Pink Diamond and Diamond Ring. Set with a cut-cornered rectangular modified brilliant-cut fancy vivid purplish pink diamond weighing 3.74 carats, embellished with circular-cut diamonds, mounted in 18 karat white gold. Ring size: 6, illustrated unmounted. Accompanied by GIA report numbered 6177105940, dated 15 February 2017, stating that the 3.74 carat diamond is natural, Fancy Vivid Purplish Pink Colour. Estimate-1,248,390-1,930,500. Lot sold 2,329,470 USD. See more here-http://bit.ly/2t2nZ5H
-Lot 1613-Impressive Fancy Intense Yellow Diamond and Diamond Ring. Set with a cushion modified brilliant-cut diamond weighing 30.71 carats, flanked by two trapeze-shaped diamonds weighing approximately 1.50 carats in total, to the shank pavé set with circular-cut diamonds of yellow tint, mounted in 18 karat yellow and white gold. Ring size: 6, illustrated unmounted. Accompanied by GIA report numbered 1176440395, dated 6 January 2016, stating that the 30.71 carat diamond is natural, Fancy Intense Yellow Colour, VS1 Clarity. Estimate-682,110-900,900. Lot sold 970,398 USD. See more here-http://bit.ly/2ukcC8T
-Lot 1732-Fancy Vivid Yellow Diamond and Diamond Ring. Set with a heart-shaped fancy vivid yellow diamond weighing 8.00 carats, flanked by two tapered baguette diamonds stated to weigh approximately 1.66 carats in total, decorated with circular-cut diamonds, mounted in 18 karat white gold. Ring size: 6. Accompanied by GIA report numbered 1223299743, dated 12 April, 2016, stating that the 8.00 carat diamond is natural, Fancy Vivid Yellow Colour, VVS2 Clarity, with Excellent Polish and Symmetry. Estimate-617,760-772,200. Lot sold 785,070 USD. See more here-http://bit.ly/2ukDvJU
-Lot 1683-Fancy Deep Purplish Pink Diamond and Diamond Ring. Set with an emerald-cut fancy deep purplish pink diamond weighing 1.07 carats, surrounded by pear-shaped diamonds weighing approximately 2.81 carats in total, embellished with circular-cut diamonds of pink tint, to the pavé-set circular-cut diamond shoulders, mounted in platinum. Ring size: 5¾. Accompanied by GIA report numbered 1112270265, dated 26 October 2009, stating that the 1.07 carat diamond is natural, Fancy Deep Purplish Pink Colour, SI2 Clarity. Estimate-193,050-231,660. Lot sold 225,225 USD. See more here-http://bit.ly/2sjkqLv
-Lot 1672-Fancy Vivid Yellow Diamond and Diamond Ring. Set with a cushion-shaped fancy vivid yellow diamond weighing 4.08 carats, flanked by pear-shaped diamonds weighing 0.62 carats in total, mounted in platinum and 18 karat yellow gold. Ring size: 6. Accompanied by GIA report numbered 2175230584, dated 18 January 2016, stating that the 4.08 carat diamond is natural, Fancy Vivid Yellow Colour, Internally Flawless; also accompanied by two GIA dossiers numbered 2176275495 and 2196316671, dated 30 April 2014 and 23 January 2015 respectively, stating that the diamonds each weighing 0.31 carat are both D Colour, Internally Flawless. Estimate-135,135-154,440. Lot sold 176,963 USD. See more here-http://bit.ly/2s3XwDD
-Lot 1735-Very Light Pink Diamond and Fancy Light Blue Diamond Ring. Set with a emerald-cut very light pink diamond weighing 3.39 carats, flanked by two tapered baguette fancy light blue diamonds weighing 0.15 carat each, mounted in platinum and 18 karat pink gold. Ring size: 5¾. Accompanied by GIA report numbered 5161947068, dated 15 January 2015, stating that the 3.39 carat diamond is natural, Very Light Pink Colour, VVS2 Clarity; also accompanied by diamond type classification report stating that the diamond is determined to be a Type IIa diamond. Type IIa diamonds are the most chemically pure type of diamond and often have exceptional optical transparency. Further accompanied by two GIA reports numbered 5172660661 and 2175660629, both dated 6 June 2016, stating that two diamonds each weighing 0.15 carat are natural, both Fancy Light Blue Colour. Estimate-83,655-102,960. Lot sold 128,700 USD. See more here-http://bit.ly/2tmUlKX
-Lot 1720-Fancy Vivid Yellow Diamond and Diamond Ring. Set with a cushion modified brilliant-cut fancy vivid yellow diamond weighing 5.01 carats, flanked by two tapered baguette diamonds, mounted in 18 karat white and yellow gold. Ring size: 6, illustrated unmounted. Accompanied by GIA report numbered 2165082216, dated 24 April 2014, stating that the 5.01 carat diamond is natural, Fancy Vivid Yellow Colour. Estimate-83,655-115,830. Lot sold 104,569 USD. See more here-http://bit.ly/2sSHAqE
-Lot 1733-Fancy Vivid Yellow Diamond and Diamond Ring. Set with an emerald-cut fancy vivid yellow diamond weighing 2.43 carats, flanked by two step-cut diamonds weighing approximately 1.40 carats in total, mounted in platinum. Ring size: 6. Accompanied by GIA report numbered 6177390218, dated 20 November 2015, stating that the 2.43 carat diamond is natural, Fancy Vivid Yellow Colour, VVS2 Clarity. Estimate-55,341-64,350. Lot sold 67,568 USD. See more here-http://bit.ly/2tmMtJa
-CHART OF THE WEEK: Gold Plunges After 1.8 Million Ounces Were Traded in One Minute. Gold traders shaken awake by Monday’s rapid price plunge said the move probably won’t mean an end to the sleepy pace that’s characterized the market in recent months. Bullion sank at 9 a.m. in London on Monday after a huge spike in volume in New York futures that traders said may have been the result of a “fat finger,” or erroneous order. Trading jumped to 1.8 million ounces of gold in just a minute, an amount that’s bigger than the gold reserves of Finland.
The episode is unlikely to upend the broader trend in gold, where volatility has languished, analysts including George Gero at RBC Wealth Management said. A measure of price swings in the metal fell in April to the lowest in records going back to 2007. It’s since held near that level, even amid political discord in Europe, rising U.S. interest rates and mounting tensions between the U.S. and North Korea. “You haven’t seen volatility when volatility was warranted,” said Gero, a New York-based managing director at RBC. “You’ve got a host of important matters that could have moved gold much more than they did. Whenever there’s an event-driven rally, it doesn’t seem to last.”
Some 18,149 lots were traded on Comex in just a minute on Monday, before falling back to 2,334 lots an hour later. “No one has a clue, apart from the unfortunate individual that pressed the wrong button,” David Govett, head of precious metals trading at Marex Spectron Group in London, said of the spike in volume. Thin activity and automated trading may exacerbate such moves, he said. Others said a trader may have made a larger order than intended, or underestimated the market’s ability to absorb so much gold. Read report here-https://bloom.bg/2siGHsH and https://bloom.bg/2tlHid2
-Lawrie Williams: Another flash crash in gold engineered or fat finger? Quick recovery. 56 tonnes of paper gold sold in one minute in the markets at precisely 9 am London time. My colleague Ross Norman puts it down as most likely due to as he puts it as bearing “the hallmarks of a fat finger ‘Muppet’ a trade of 18,149 ounces would be a very typical trade, but a trade of 18,149 lots of a futures contract (which is 100 times bigger) would not be it leaves us wondering if a junior had got confused between ‘ounces’ and ‘lots’.
Personally, I take a more cynical view as this being very much an engineered trade designed precisely to knock the gold price, and other precious metals, down sharply just as they seemed set to take off on an upwards path again. This seems to happen too often with gold, it has happened before again just when the yellow metal seemed to have shrugged off adverse news and events and shown some strength regardless. If this is the case, the volume of presumably fictional paper gold on this occasion would have seemed sufficient to drive the metal price down towards some kind of death spiral. In the event it knocked the price back around $20 only before the price began to recover again. Read more here-http://bit.ly/2s2u2pT
-CHART OF THE WEEK: Bull or Bear, These Gold Charts Offer Something for Everyone. Gold is gripped by conflicting forces. Bearish investors see no incentive to hold the precious metal because equities are climbing to records, the global economy is recovering, and the Federal Reserve is so wary of tight labor markets that it has pledged to increase U.S. interest rates further this year. At the same time, bulls say gold is an appealing hedge as long as Donald Trump’s presidency remains mired in controversy and legislative gridlock, and as terrorist attacks and geopolitical tensions heighten risks for other assets.
In early June, prices burst through a slumping trend line going back to the record $1,921.17 in 2011. But the rally failed to hold above the long-term bearish trend, and that “is not a healthy sign,” said Fawad Razaqzada, a London-based analyst at brokerage Forex.com. Prices could drop to $1,236, and then to $1,200, he said, adding a decisive break above the line is needed to signal the end of the downtrend.
Gold is the most expensive relative to silver in more than a year. The metal is little changed in the second quarter while silver has lost 9 percent. Silver tends to fall more than gold when precious metals weaken, while the reverse happens in a bull market. The ratio of 75 is above the 10-year average of 62.5. “It’s probably a good moment to buy silver and sell gold if you like to trade the ratio and believe there’ll be even a moderate amount of mean reversion,” said Philip Klapwijk, managing director of Precious Metals Insights Ltd. “That said, gold’s not that far above the 200-day moving average and a break below that could trigger a leg down, which would probably see the ratio blow out.”
There are also some bullish signs. Higher highs and higher lows signal a continuing rally for some technical analysts. Prices will stabilize between the 200-day moving average at $1,237 and $1,250 and then edge higher toward $1,300 later in the year, as the U.S. dollar comes under more downward pressure, according to Georgette Boele, a currency strategist at ABN Amro Bank NV in Amsterdam, on Wednesday.
Gold may be in a longer-term bullish trend signaled by the formation of a rare golden cross in December, according to Ned Naylor-Leyland, manager of the Old Mutual Gold & Silver Fund. That’s when the 50-week average moved above the 200-week gauge, and the previous time it happened was in 2002. After that, gold climbed more than sixfold in nine years. Every time they’ve crossed in the past 30 years, it foreshadowed a broad price move that lasted at least three years in gold and real bond yields, according to Naylor-Leyland. Read more here-https://bloom.bg/2tpSQw6
-CHART OF THE WEEK: Oil’s Pain Is Gold’s Gain as Nervous Traders Seek Safety. Oil’s plunge into a bear market is bolstering gold’s appeal as a haven as traders question the outlook for inflation and economic growth. One ounce of gold buys 29 barrels of oil, the most since just before Donald Trump ascended to the U.S. presidency. “This ratio on the highs may suggest nervousness in the financial markets about global economic prospects as the energy commodity drops compared with the safe-haven asset,” said Tai Wong, head of base and precious-metals trading at BMO Capital Markets. Read more here-https://bloom.bg/2tqnfKL
-Top money manager Frank Holmes says gold may hit $1,500 for the first time since 2013. Gold prices have climbed by around 8% year to date close to what they gained for all of last year. That comes as no surprise to Frank Holmes, chief executive and chief investment officer at U.S. Global Investors, and he sees lots of reasons why prices could rally further potentially to as high as $1,500 an ounce. That would be a 20% rise from its current level of roughly $1,250. Read more here-http://on.mktw.net/2tr5b3j and http://bit.ly/2s46vVc
-Jeff Clark: The Shift is On, Why Institutional Investors Are Buying Gold Again. Read more here-http://bit.ly/2tmULkM
-Ronald-Peter Stoeferle: How Will Gold Perform During Next Financial Crisis? Read more here-http://bit.ly/2u0jf0M
-Greg Hunter: Gerald Celente Interview, War & Financial Calamity Two Biggest Trends. Top trends forecaster Gerald Celente thinks of all the things he studies, war and financial calamity are the two biggest trends he sees. The big game changer in the geopolitical global landscape is war coming from the Middle East. Celente thinks the economy is so weak that it must be propped up by massive fraud, and that means any black swan can sink this economic scam overnight. Celente contends, “It’s over, it’s over and that’s why gold is the ultimate safe haven to me.” What specifically is Celente watching to tip him off trouble is coming? Celente says we are watching Iran and any confrontation with Iran and we are watching tech stocks and the possibility of a sell-off and also the price of oil. There is too much supply and not enough demand–end of story.” Read more here-http://bit.ly/2s3nqHw
Gold to silver ratio at 80 to 1 with gold at $2,000 the silver price would be $25.00
Gold to silver ratio at 70 to 1 with gold at $2,000 the silver price would be $28.57
Gold to silver ratio at 60 to 1 with gold at $2,000 the silver price would be $33.33
Gold to silver ratio at 50 to 1 with gold at $2,000 the silver price would be $40.00
Gold to silver ratio at 40 to 1 with gold at $2,000 the silver price would be $50.00
Gold to silver ratio at 30 to 1 with gold at $2,000 the silver price would be $66.67
Gold to silver ratio at 20 to 1 with gold at $2,000 the silver price would be $100.00
Gold to silver ratio at 15 to 1 with gold at $2,000 the silver price would be $133.33
-The turnover or physical movement of metal brought into or taken out from the COMEX-approved silver warehouse surged to just under 7 million oz this [past] week, as total inventories rose by 0.4 million oz to 205.8 million oz, another 20+ year high. Even though JP Morgan has not been taking delivery of silver on futures contracts in its own account of late, another 1.3 million oz was deposited in its COMEX warehouse, increasing silver holdings there to 111.6 million oz, another new record high.
The big deal here (apart from the 800 lb. JPM gorilla in the room) is still the unique and unprecedented physical turnover that has lasted for six years running. No other commodity has experienced such physical turnover. The world mines less than 17 million oz each week, why would 7 million oz be moved in six COMEX warehouses in and around New York City? All this movement involves 1,000 oz bars of silver being put onto and taking off trucks. Why is this occurring? My best answer is the metal is being moved about because it is in high demand and, further, that the turnover is directly related to JP Morgan accumulating physical silver.
Let’s face it, the unprecedented silver turnover began six years ago, the same time JPM opened its COMEX silver warehouse and it is over this time that the JPM warehouse came to hold the lion’s share of metal. Let me be clear, the 111 million oz in the JP Morgan COMEX warehouse came from futures deliveries; there’s another 100 to 150 million oz that JPM has “skimmed off” the unprecedented physical COMEX weekly turnover. Admittedly, none of this has had any price impact to date, but in terms of prospective price change, it looks beyond significant. Silver analyst Ted Butler June 24 2017 via Ed Steer edsteergoldandsilver.com subscribe here-http://bit.ly/1fdAByN
-In silver, I don’t think the actual reduction in this week’s total commercial net short position [in today’s COT Report] should be the main focus. Instead, I think the focus should be on the price action, in that the price decline over the past two reporting weeks has been so deliberately orchestrated so as to signal that we are very close to an important price bottom in silver, almost regardless of what the COT report indicates. I say this knowing full well that silver is the most rigged market of all and one should never underestimate the manipulative power of JP Morgan and the other COMEX commercial crooks in that new price lows can be created at will. Just to be clear, the market structure is now exceedingly bullish in silver and will only get more bullish on any further price weakness. Silver analyst Ted Butler June 21 2017 via Ed Steer edsteergoldandsilver.com subscribe here-http://bit.ly/1fdAByN
-Top Mining CEO Keith Neumeyer Predicts $130 Silver. Listen here-http://bit.ly/2t1qTYH
-John Embry: Silver World’s Most Undervalued Asset. Read more here-http://bit.ly/2tr9w6y
-Ted Butler: Silver Commentary, A Rigged Game. 76 years ago, “Joltin’ Joe” DiMaggio was in the middle of the hitting streak of streaks that would come to 56 consecutive games and which has remained a major league baseball record to this day. That season (1941), the Yankee Clipper would bat .408 during the epic streak or more than 4 hits for every 10 at bats. Ted Williams, of the Boston Red Sox, had the highest batting average in 1941, hitting .406 for the entire season. What would you say if I told you that a batter had hit 1.000 for an entire season? Or that a pitcher threw no-hitters every time he played a game? I’m pretty sure you would say that’s impossible or that something was definitely wrong.
And, of course, you would be correct somethings are too impossible or outlandish to be true. Not just in baseball, but there are limits in almost every endeavor. Therefore, I wouldn’t blame you if you questioned what I claim is the winning streak of all winning streaks in trading COMEX silver futures. Data published by the CFTC, the federal commodities regulator, indicate that JPMorgan and two or three other large financial institutions, have never taken a loss, only profits on every single silver trading position they have established over the past nine years and, in fact, for a lot longer than that. You can question what I claim all you want, but do yourself a favor and make sure you question me deeply enough please don’t let me off the hook easily.
Let me first define what I mean by establishing a COMEX silver position and never taking a loss. I’m not talking about high-speed computer day trading (HFT) which makes up the lion’s share of trading volume in silver and just about everything else. I’m talking about positions taken and held for weeks and months before they are closed out. Since JPMorgan and the two or three institutions which together hold the impossibly-perfect trading record in silver have never been net long COMEX silver futures, the trading positions established and closed out without loss, only profits, have all been short positions. If you are always net short on the COMEX, which JPMorgan and the other big perfect traders have always been, you can’t take long positions only close out or add new shorts.
Therefore, JPMorgan and the two or three other large “never wrong, always right” COMEX traders only trade from the short side; always adding new short contracts first at higher prices than where those contracts are later bought back and closed out at. From studying silver intensely for more than 30 years, I don’t think I would be able to sleep peacefully for a minute if I ever found myself actually short the metal. I think I’d rather go skydiving without a parachute. Given silver’s long history of sudden price spikes, including the spike to nearly $50 six years ago, one would think a silver short position taken by JPM and the others, would end in a loss, at least once in a while. One would be wrong to think that. Read more here-http://bit.ly/2tYLehg