12 September 2013

NAV Premiums of Certain Precious Metal Trusts and Funds - Shaking the Bushes, Selling What They Don't Have

In this case the bushes are the GLD and SLV ETFs, which are getting shaken today to try and shake loose some physical bullion for the hard up COMEX pit crawlers.  

It also will probably shake loose the weak hands and toss up some open interest to lessen the pressures on delivery.

The last time they tried this is did not work out well, because they forget that COMEX is a sideshow to the real precious metals markets which have moved offshore.
The gold silver ratio is back up to 60 which is on the high side.

So today we are seeing a bear raid in the metals that started last night.

These guys remind me of the little girls, years ago when they used to dress up like ghosts and jump out at us and say 'boo!'  About the third or fourth time it became a little hard to fake a reaction.

But I don't think the little girls took themselves so seriously as these Wall Street scamps.

Voiceover from Aziz Ansari:  Oh no, the COMEX is selling more gold that they don't even have.  I'm so afraid.

Perhaps this price drop will allow JPM to squeeze some additional bullion out of GLD, which they can add to their stash.

"He who sells what isn't his'n,
Must buy it back, or go to prison."

Daniel Drew