25 June 2014

NAV Premiums of Certain Precious Metal Trusts and Funds - Silver Holds Its Level

There is little question that a major short interest position in silver that had built up in the first part of this year was taken out and pummeled by the power players in the market.  Gold was also oversold on paper, but not to the extent of silver.

Today is a quiet options expiration so far, probably because of this.  The urge to sell silver by going short has been tempered by the beating administered to those who went a bit too far in their antics. 

There is some chance that a gut check will be delivered to the longs at some point before the end of the month, just to keep them orderly.   But the real question is if the trend followers and momentum players will take to the long side now, having run out the clock on the big short.

The irony here is that while funds and specs play their paper reindeer games with each other, the Comex is largely ignoring the physical bullion market.  A little more leverage here, some strategic papering over there, and the band plays on.

These self-absorbed games, and the hubris of the banking cartel, are setting up a monumental dislocation in the global markets.   Try not to exhaust your funds by chasing short term returns and risks through all this nonsense, until the fundamentals becoming overpowering and bend the paper trade to the inevitable reckoning. 

These are dangerous markets, badly regulated, and overlaid with traps and tricks.  Spend your money on more useful endeavors.  Get out of debt, and take your money as far away from Wall Street as is possible.  The oligarchy is not only audacious, but is increasingly rapacious, which for the public is an unfortunate combination, and a terrible burden on the real economy.

As Peter Bernstein said about trading, 'The trick is to survive.'   Until they do not.  And then they go on television.