11 December 2013

Gold Daily and Silver Weekly Charts - JPM the 'Stopper' - Winter Is Here

"This is the first generation of Americans in modern history expected to enjoy lower living standards than their forebears. It is the first generation in modern history whose life expectancy is dwindling.

It is the first generation of modern Americans whose educational attainment is declining. It is the first generation of modern Americans who face less opportunity than their parents.

Shorter, nastier, dumber, harder, bleaker. That’s the future for not only Americans, but for many in the world’s richest countries."

Harvard Business Review, America's Economy Is Officially Inside Out

Holding precious metals in unallocated storage with a gold or silver dealer to save on storage fees is a particularly risky proposition at this time. The reason that storage fees are waived is because the entity has the right to borrow your metal and to fractionalize your claim on bullion for their own financial purposes, without your specific knowledge of when, and for how long, and to what extent.

It seems to undermine the very nature of a long term precious metals investment as insurance against an unexpected and disruptive financial event.

I hear from those who watch these sorts of things that JP Morgan is said to be 'stopping' or taking delivery on the gold contracts offered in this delivery month to the rate of something like 95%. That certainly is notable.

And even more odd is that they are stopping about 60% of the silver contracts, which is even more odd since they are nominally net short silver in the futures.

Ted Butler has proven to be a useful source of information on these things for me and I thank him for this.

Mr. T. Ferguson has some remarks on the bullish composition of the precious metals markets and JPM's gold acquisitions here.

And as always, Aussie data wrangler Nick Laird and his charts are indispensable.

Have a pleasant evening.