16 July 2015

Gold Daily and Silver Weekly Charts - An Extreme In Sentiment Ahead of Key Month

"Such is the rule of our warfare. We advance by yielding; we rise by falling; we conquer by suffering; we persuade by silence; we become rich by bountifulness; we inherit the earth through meekness; we gain comfort through mourning; we earn glory by penitence and prayer. Heaven and earth shall sooner fall than this rule be reversed."

John Henry Newman

Someone passed along some comments found on the web, that Bill Fleckenstein characterized as demonstrating 'an epic extreme in [negative] sentiment' for the precious metals, or something to that effect.

And those of us who watch these things are scratching our heads, because as we see this extreme negativity in sentiment, with the 'open interest' for gold on the Comex rising at the same time to very high levels, ahead of the active month of August. I have included the latest 'claims per ounce' chart below.

Things do make sense. There is a reason why the price of gold and silver are getting pounded against strong buying in paper here, and especially in physical bullion overseas.

But it does take some willingness to look at the facts of the whole matter, rather than failing theories that lead us from bubble to crisis, one after another, or the group think of the thug class.  That is worth shining all the light on it that is possible because frauds and deceptions love darkness and secrecy.
There is always the schadenfreude of the internet and those who cannot resist the temptation of a cheap remark to make themselves seem more serious.  Those things are not worth bothering about.
I hope that both those who yearn for meaningful financial reform and those who seek an end to the manipulation of precious metal markets have no illusions about how formidable a power is allied against them.  If they wish to see their future if things are allowed to progress as they are, look to Greece.
It is a shame that these different reform groups cannot see how much they have in common cause, despite their ideological and political differences.

This is the nature of our warfare.  Nec laudibus, nec timor.

Have a pleasant evening.