15 April 2015

Gold Daily and Silver Weekly Charts - Round Numbers and Extraction Capitalism

Gold and silver managed to rally back today.

But they are still revolving around their round numbers, and moving in a trading range.

Silver is oscillating between 15 and 18, and gold between 1180 and 1220.
There was not much delivery action report at the Bucket Shop, and there was the usual moving around of bullion in the silver warehouses, with gold warehouse activity at a minimum.
This market is going to break.  I don't know when.  But all price manipulation schemes eventually do.
I am concerned that a number of things are going to break.  But that is the price of turning the keys to your society over to a gang of sociopaths.
I gave the Central Gold Trust issue more thought, and I still think that this looks like a venturesome arrangement for this fund to get a big short term gain.    The high threshold for redemption is more like GLD that anything Sprott might have, and the entire premise seemed poorly thought and lacked any longer term focus.  It was a short term focused shot at 'unlocking value.'  Once.
If I were a long term investor I would vote no.   But if I were a speculator who likes to trade in and out for a flip I would probably want to take it.

In answer to a query, a similar situation does not seem feasible with the Central Fund because the shares that trade are non-voting.  The voting shares are closely held by management of the Fund.
Have a pleasant evening.


Chris Hedges is not pulling many punches in this one.   I think he is a little on the dramatic side for my own centrism.  But things are certainly not going all that well,  injustice is widely tolerated, and the system is in dire need of reform.  Is a valid perspective depending on what assumptions and standards one applies.
If his views were taken up by a large minority of activists, it would probably shock most adults who are not early baby boomers, but would seem like the 1960's to those who were around back then. Activist sentiment became galvanized around a social cause in civil rights, and against aggressive wars such as Vietnam.
I won't say they were good times.  There was quite a bit of violence and blood, more than most people probably remember. Assassinations were popular methods of quieting dissent at home and abroad. 
But the politicians were less smug and complacent, and the music was markedly better.

So many things to think about. Whom will we elect for President this time, Bush or Clinton?