"We suspect that shorting gold has come to seem like a riskless proposition as long as there is confidence in the Fed. Synthetic gold is the perfect substance for a carry trade: an easy borrow with very low carrying cost and little upside basis risk. Such a hypothesis, in our opinion, does much to explain the incongruity of a declining gold price while fundamentals for paper currency, and the U.S. dollar in particular, obviously deteriorate; while demand for physical gold has exceeded new mine supply for several years running; and while above-ground 400-ounce .995-gold bars located in London, New York, and other financial capitals (in cohabitation with speculative trading activity in paper markets) have steadily dwindled and disappeared into Asian financial centers reformulated as .9999 kilo bars."
Tocqueville Gold Newsletter 2Q 2015
"Though justice often moves slowly, it seldom fails to overtake the unjust."
Horace, Odes
Gold and silver held their ground and much of their gains from this week.
Koos Jansen reports that 36 tonnes of Venezuela's gold have been shipped to the refineries in Switzerland, a familiar stop for gold to be recast for the markets of Asia.
Next week we will see the second revision of 4Q GDP which is likely to be a downward revision. They like to sneak these in after the fact. But let's see.
There were no deliveries to speak of in The Bucket Shop yesterday. I have included the current inventories in the Comex licensed warehouses below.
This was a difficult week. Often the best way to meet misfortune and adversity is to just keep on keeping on, and to bear in mind all of God's many tender mercies for us, which are so easily overlooked and forgotten when things do not go our way.
One cannot help but notice the growing ugliness and harsh bravado that seems to be all too fashionable among many who speak out, both on the internet and among the political and media professional class.
And it is especially appalling when one sees it among those who would otherwise think well of themselves, hold themselves up as examples, and claim to walk with righteousness. These are our modern Pharisees, the nice looking, whitewashed containers, but full of decay, corruption, and dead bones.
In their self-delusion they think that rudeness and hardness is a sign of strength, and their proud ornamentation with self-importance, mere customs and ceremonies, a proper adornment to hide their violent, hard, and unloving hearts. Lord, keep all innocents and simple souls safe from such tempters and their snares, even unto the death without end.
Let's see if the gold chart formation can progress next week and tell more about what the markets have in store for us.
Have a pleasant weekend.
Ubi Caritas is a hymn of the Western Church, long used as one of the antiphons for the washing of feet on Maundy Thursday. The text dates from the earliest Christian gatherings before any formal rites were established. This particular melody for this hymn was composed sometime between the fourth and tenth centuries.
