Gold and silver were rallying in the evening last night, but met some resistance today.
They are being pushed lower as usual in the off hours.
There was intraday commentary here that references some secondary information that seems to support the theory that it is the demand for German gold, rebuffed by the Fed, that is at the heart of this current market operation to loosen bullion from the ETFs. The gold has been leased to the banks and been sold, and the physical market is so highly leveraged that it cannot be retrieved except through extraordinary market antics.
It certainly is the oddest thing that I have seen in some time, and the lack of serious coverage of this is remarkable in itself. How can a custodian tell a sovereign people that they may not have their own property back for seven years, too bad, and that's that?
Is this some new standard for custodial management that has been aped from the likes of MF Global, to be followed now even by the central banks whose most vital asset is an unshakable confidence in their integrity?
Have the expectations of the financial sector been dragged down to the general conduct of conmen and gangsters, so that one expects them to use other people's property as their own, and then brazenly defy the rightful owners to attempt to get it back? And this is not extraordinary or notable?
This whole affair seems so straightforwardly odd that one must return to the same conclusion, over and over, that something has gone terribly, terribly wrong with the financial system.
And no one seems to raise any fuss about it, or even seriously question it? Indeed, it almost seems to be cloaked in an unusual silence, like the dog that didn't bark.
Stand and deliver. Either the bullion, or the truth.