Gold and silver look particularly good in times of thuggery, deception, and the willful arbitrariness of the powerful to promote their own interests, the public be damned.
However, the markets are still clearly signalling that they believe that cooler heads will prevail, and there will be a fresh opportunity to game the market and steal from the many.
The US made a tragic mistake in not pursuing real reform earlier on, and speaking out for it forcefully when they had the momentum and opportunity. Co-opting the reform movement and turning it into a tool of the monied interests was a stroke of genius.
The best lack all conviction, while the worst are filled with passionate intensity.
Tomorrow is option expiration on the Comex. I hear that there are quite a few call options open around the 1600 strike. So we would expect the price of gold to get hammered down below 1600 sometime this week.
When options are in the money, they are converted into open futures contracts. So there may be a lot of new holders of futures contracts who get a stiff gut check on Wednesday through Friday, if it does not come tomorrow.
"When you spread out your hands in prayer, I will hide my eyes from you; even if you offer many prayers, I will not listen. Your hands are reddened with blood; wash and make yourselves clean. Take your evil out of my sight. Stop doing wrong, learn to do right. Seek justice, encourage the oppressed...
See how the faithful city has become a harlot. She once was full of justice; righteousness used to dwell in her, but now it is filled with destroyers. The silver of your goodness has become waste, the wine of your virtue is diluted. Your rulers are rebels, companions of thieves; they love bribes and seek after gifts...
My kingdom will be restored by justice; those who repent will be reborn. Those who desert the Lord will be consumed by shame, but rebels and sinners will be cast out into the void, forever."
Isaiah 1:15-29
