02 September 2016

NAV Premiums of Certain Precious Metal Trusts and Funds


The gold/silver ratio is less lofty at 68.

The Sprott Silver premium is a bit light compared to its historical relationship with Sprott Gold, but both are premium positive.

And both have been slowly adding to bullion by expanding the units outstanding and drawing down some cash levels.

Central Fund is trading at a 4.7% discount to NAV.





01 September 2016

The Fall of the American Republic: Six Caesars


"Rome has grown so much since its humble beginnings that it is now overwhelmed by its own greatness...The state is suffering from two opposite vices, greed and excesses; two plagues which, in the past, have been the ruin of every great empire."

Livy




Gold Daily and Silver Weekly Charts - A Nation of Servants


The PMI number came in much lower than expected this morning at 49.4, an outright contraction.

This was dismissed by some as indicative of manufacturing, which is no longer very important to GDP as compared to the 'service sector.'

All eyes will be on the Non-Farm Payrolls report, probably to an excess, because the thinking is that a stronger number will give the hawks cover to arm twist a 25 bp rate increase at the FOMC in September.

A much lower than expected number will chill that expectation, and will probably cheer on financial asset prices unless it is disastrous.

The expected number is 180,000 and the 'whisper' is 200,000.

After the initial reaction, wiser heads will be looking at the prior month's revision from 255,000 if any.   And probably more importantly, they will look at the growth in average hourly earnings.

The financiers and the Democratic establishment would like a number north of 200k.  This would give the former a stronger dollar to eat you with my foreign dears, and the latter a boost for their presidential candidate who hopes to ride in on waves of Obama brand economicolatry.

So let's see what happens.

Have a pleasant evening.



SP 500 and NDX Futures Daily Charts - Pop R' Drop


Just to net this all out for you, the equity markets have been in an extraordinarily tight trading range since the post-Brexit rally that has stalled out, or roughly the middle of July.

They are ranging back and forth, on fairly light volumes, trying to decide which way to go.

Tomorrow we will be seeing one of the more important Non-Farm Payrolls reports, because of the implications that it might have for the Fed's next move on interest rates in September.

And so we might finally see a breakout, or breakdown, from this trading range.

So like many others I will be watching it to see if this gives us some direction.

Have a pleasant evening.