NAV Premiums of Certain Precious Metal Trusts and Funds

The cash level on the Sprott Silver Trust is getting mighty thin.

Gold Daily and Silver Weekly Charts - How Unusual

"Ordinarily, the financial risk in a market, and hence the risk to the economy at large, is limited because the assets traded are finite. There are only so many houses, mortgages, shares of stock, bushels of corn, [bars of silver], or barrels of oil in which to invest.

But a synthetic instrument has no real assets. It is simply a bet on the performance of the assets it references. That means the number of synthetic instruments is limitless, and so is the risk they present to the economy...

Increasingly, synthetics became bets made by people who had no interest in the referenced assets. Synthetics became the chips in a giant casino, one that created no economic growth even when it thrived, and then helped throttle the economy when the casino collapsed."

US Congressman Carl Levin

Obvious, heavy-handed, and pretty clear to anyone who will look at the tape.

 

Such are the times in currency wars and financial coups d'état.

It was a concerted dumping of contracts at market in the quiet early hours of trading precipitated by no news, amongst players who will be unlikely to exchange any of the physical commodities that they are 'buying and selling.'

 

This is not price discovery.

 

This is will not achieve its intentions, unless those involve a severe market dislocation, and a break in trust in the integrity of the financial system, starting at the periphery of the Dollar empire.

 

The fraud and looting will continue until confidence improves.

 

What could go wrong?

 

There was intraday commentary here and here.

 

Have a pleasant evening.

 

 

 

 

Stocks Rally on Geopolitical Risk and Worse Than Expected Economic News

"We have forgotten the gracious hand which preserved us in peace, and multiplied and enriched and strengthened us; and we have vainly imagined, in the deceitfulness of our hearts, that all these blessings were produced by some superior wisdom and virtue of our own. Intoxicated with unbroken success, we have become too self-sufficient to feel the necessity of redeeming and preserving grace, too proud to pray to the God that made us!"

Abraham Lincoln, April 1863

"The great masquerade of evil has played havoc with all our ethical concepts. For evil to appear disguised as light, as charity, as historical necessity, or social justice is quite bewildering to anyone raised on traditional ethical concepts. But for the Christian who builds his life on the word of God, it merely confirms the fundamental perversity of evil."

Dietrich Bonhoeffer

Stocks managed to eke out some addition gains on increasing geopolitical risks, a government report that shows quite clearly that the financial system remains fragile and vulnerable to collapse from interconnected counterparty risks and reckless speculation, and a worse than expected set of numbers from the real economy.

 

Hi ho!

 

Eventually, everyone sits down to a banquet of consequences.

 

Have a pleasant evening.