There was little action on the metals front last Friday as the clearing and warehouse reports below demonstrate. The action has shifted to the East.
I expect the markets to unravel their story about the future somewhat slowly over the summer. This goes for stocks, bonds and commodities. We are seeing a great reckoning between reality and the will to power.
If anyone is near to a fiduciary responsibility for the obligations for gold and silver bullion delivery, or even large positions of naked shorts in stocks, and they do not personally have title and possession of the metal or the equities, I would probably suggest that they get out or start lawyering up now, with a well thought out Plan B involving offshore accounts and domiciles. You can always try for a Presidential pardon later on. I suspect it will become the fashionable thing to do.
If this convoluted system of asset rehypothecation starts breaking bad it is going to make MF Global look like a church picnic. 'Everyone was doing it' is not an unassailable defense, and 'I had no idea what was going on'' only works for those with very lofty connections and office.
Have a pleasant evening.
