Notable that the Gold/Silver price ratio has dropped below 50.
I have noticed that the Sprott Gold Bullion Fund units outstanding is fluctuating slightly. I wonder if the trust is buying and selling their units in the market on a low scale basis for purposes of cash management. The amount of bullion held is not changing.
If you click on the category name "Net Asset Values" at the bottom of this entry you can see the prior reports like this.
I expect gold and silver to meet our forecast targets of 1450 and 30 barring a meaningful correction in US equity prices. The rally is powerful indeed as people and institutions around the world flee the actions of the US banking system and the fraudulent financial activity that surrounds them. It seems intimately tied to the US dollar, in its creation, use, and distribution. The problem is not that dollars are being created but rather that they are being created and diverted over to unproductive activity including war, fraud, and speculation.
Franklin Delano Roosevelt once said,
"In politics, nothing happens by accident. If it happens, you can bet it was planned that way."
I think this same general axiom applies to certain categories of financial developments. If a firm's or trader's track record looks too good to be true, it probably is. And in my own opinion the US financial markets are rife with insider trading, confidence games, and manipulation.
Obama and the Congress has failed to reform the Too Big To Fail banks, and so this is the state the world now finds itself in with Wall Street and other big multinational banks taking record bonuses from their people. In the US alone Wall Street will be taking a record $144 billions in bonuses this year while the country suffers. To put this in context, M1 money supply is now about 1,800 billion. So Wall Street is taking about 8% of the national M1 money supply in personal bonuses this year not including subsidies both direct and indirect. That is not a financial system; that is racketeering. And any reform movement that does not address this need for systemic reform is misguided at best, and quite possibly yet another calculated diversion from the monied interests.
Here is a Chinese cartoon clip describing the US financial system as it is today.
I am holding no positions now since I am a bit distracted by personal matters, and that this will be almost full time for the next few days. I therefore closed my short term silver and gold longs and their hedges this morning so I will not be distracted by them. Gold and Silver are already so close to the targets I set so many months ago that I consider them fulfilled and would not quibble over a few dollars more. Now we will see what happens next.
In the end all things pass away, and only love endures. I will be watchful for a sign that the US equity market has topped but will resist the temptation to anticipate it. My sense it that we are not quite there yet but I have an open mind, and as I said the other day, I will not underestimate the resolve of the bankers to raise another credit bubble.
