Summary of topics in a discussion with Jay Talor on July 14, 2014:

1. GOFO

• Slightly positive for 1, 2, & 3 months ; USD lending and gold lending net almost the same return.

2. Platinum and Palladium physical premia:

• premium for Palladium at $137 /oz on Shanghai Metal Exchange vs NY / London
• premium for Platinum at $ 93 / oz (SME) and $64 /oz (Shanghai Gold Exchange)

3. Trading "unallocated" or non existent gold and silver:

• unallocated is a misnomer - it is not there
• Goldcore.com paper "LBMA Data: Beyond the smoke and mirrors"
• 2013 trading 280 M oz. gold per day gross daily trading volume
• LBMA statistics - May 2014 190 M oz. per day gold and 1.36 billion oz. per day silver
• May 2014 London gold trading is 600x daily mine production while silver trading is 420x daily mine production in June
• silver is key as there is no official sector holdings vs. gold
• palladium and platinum even smaller stockpiles and price indicating real shortage in China yet not extinguished
• 1996 - 1999 chart palladium replicated from 2009 to 2014 - indicating on verge of price explosion
• metals prices subdued by paper trading - Shanghai indicating the physical palladium price has already run has already started.

4. End the Fed rallies in Europe on July 19

• Lars Maehrholz organizing rally in 128 cities in 5 countries.