02 September 2014

NAV Premiums of Certain Precious Metal Trusts and Funds

Gold and silver took a fairly stiff hit this morning as the US dollar rallied on Yen and Euro weakness.

I have been looking for a big down move to flush out the trade and help to set a shorter term bottom. This may be it, or we may have some more to go.

Chartwise we are at the bottom of a trading range, if in fact this is what it is.

As you may have heard, the central banks are trading the US futures markets. Perhaps we need a new form of Glass-Steagall that prevents ALL the TBTF banks from engaging in speculation and all the corruption that comes with it, and distorting market prices with their immensely subsidized money.  What better way to transfer money from the many to the few.

When will enough be enough for this pack of crony capitalists?  Alas, their motto might best be expressed as:
'Wir haben keine Hemmungen, und einen großen Magen.'

Our inhibitions are few, and our appetites are enormous.
Since the precious metals seem to be running counter to stock these days, the rounding top that may be forming in US equities is of particular interest.

Lots of possibilities, but for now the weakness in metals is the dominant force, and stocks have been on a tear since bouncing off their own bottom of doom and gloom just a few weeks ago.

It is hard to be too cynical about these markets, and too skeptical of official statements.

Let's see what happens.