07 January 2016

Gold Daily and Silver Weekly Charts - China Tonight and Non-Farm Payrolls Tomorrow

"We hardly need to be reminded that we are living in an age of confusion — a lot of us have traded in our beliefs for bitterness and cynicism or for a heavy package of despair, or even a quivering portion of hysteria. Opinions can be picked up cheap in the market place while such commodities as courage and fortitude and faith are in alarmingly short supply...

To be persuasive we must be believable; to be believable we must be credible; to be credible we must be truthful. It is as simple as that."

Edward R. Murrow

What surprises me, at sixty-four years of age, is not that people so willingly sell themselves for lies. I have seen that happening throughout my life, although I may not have recognized it at the time for what it was.

No, what never ceases to surprise me is they sell the only thing that they really own, and the only thing that they can continue to hold and take with them, for so little.  What does it profit a man indeed.

Just because a cheat and a liar is good at it, almost with a professional pride, and is better than most of their peers, is no reason to admire them. Because in the bigger scheme of things they are just wallowing in the mud with the rest of them.

China will attempt to keep its equity markets open as selling threatens to feed on itself, tripping circuit breakers that close the exchanges and fuel a feeling of panic in the retail investors.

So tonight we will see another push and pull struggle between retail selling and official buying in an attempt to allow some holders to liquidate while keeping a feedback loop and panic from forming.

There is little different between what they are experiencing and what we have been through at least two times now in recent memory alone.  Their problem is that their mechanisms to control and manage their markets are less developed and sophisticated.

And after all that we will get the Non-Farm Payrolls report for December tomorrow.  I have included an excerpt show the projections for those numbers as the first chart below.

Several people inquired if I thought that this five day rally in gold was a 'set up' for the Jobs Report tomorrow.

My answer is 'maybe' but it is hard to tell because it does look and feel like a genuine flight to safety especially with silver lagging behind. But all things reverse, and if the unreformed of Wall Street see the opportunity they will most certainly take it. They'll never learn or stop on their own.

The gold-silver ratio is back at a very high 77 according to the NAV Premiums report I posted earlier today.

Silver did manage to make its move through 14 today, which was long overdue.

I would like to remind everyone that what is happening now is still occurring within the larger context of a protracted currency war and generational change in the structure of global money.  There are far too many 'analysts' that are missing this, the forest for the trees if you will.

Bonne nuit et bonne chance.