25 October 2013

Gold Daily and Silver Weekly Charts - FOMC and Option Expiration Next Week

As a reminder Monday, 28 October is the November options expiration on the Comex.

November is not a particularly significant month for the futures in precious metals, but relative to supply the open interest is rising, so we *might* see a gut check some day, perhaps Tuesday or Wednesday.

This would also cover the traditional whacking on the metals around an FOMC meeting announcement on Wednesday. I doubt very much we will see anything new out of the Bernanke Fed as he winds down his tenure. We may see some acknowledgement of the damage which the government shutdown has done to the real economy.

I have linked to two pieces on it in the sidebar news, the charge and the denial,  but have not commented on the allegations made by Mr. Jeffrey Christian at the Silver Summit this week that whistleblower Andrew Maguire is 'a fake.' Maguire has denied it in a statement at TFMetals, but has not yet made a more expansive and complete response.

Since none of my thinking depends on anything that Maguire has said, and I do not know him or the validity of what he says, it does not concern me overmuch.  I said as much the last time I spoke on this topic here.   But I have some friends who have confidence in him, and I would hate to see them disappointed and badly played. 

I am expecting something like an interview in KingWorldNews, and I would hope they don't beat the teasers on this to death for drama's sake.  A whistleblower must present their bona fides since it is a portion of their claim to credibility.  I look forward to clearing the air on this before it becomes even more nonsensical with ex-wives and he said, he said.   A frank and undeniable rebuttal is what is owed to their audience, and the mystery has become a bit much. 

And it is good to remember that the reason we must tolerate all this nonsense is because of the appalling lack of transparency in the positions and transactions in the gold and silver markets, and the uneven performance of the regulators who put forward five year investigations into verifiably odd actions in markets, and then shut them down without any report whatsoever. It hardly inspires confidence, and I think people around the world are viewing these antics with increasing disdain.

In the meanwhile, the markets go forward, and whatever has been hidden will be revealed. Eventually.

Have a pleasant weekend.