Gold Daily and Silver Weekly Charts - Grinding

"It is not power that corrupts but fear. Fear of losing power corrupts those who wield it and fear of the abuses of power corrupts those who are subject to it."

Aung San Suu Kyi


"I do think that looking out six months that we will likely see a widening of the swings in volatility, as events drive real people to take certain decisions, and the Banks and their government associates seek to stabilize and maintain their status quo."

Jesse, 14 August 2015


Through the mills of God grind slowly, yet they grind exceeding small;
With patience He is waiting, and with exactness grinds them all."

Baron Friedrich von Logau, Sinngedichte

The bubble in US financial paper continued unwinding today in stocks, despite efforts by the financial engineers to rally them starting with the overnight futures.

There is always a reversion to the mean struck by the fundamentals, sooner or later.

Some of those reversions can be quite impressive, especially to those made stolidly proud through the appearance of their own power and continuing success.  How are the mighty fallen.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Hard Time Killin' Floor

The bubble in US financial paper continued deflating again today despite an early morning attempt to rally stocks higher.

Now it is clear why there was no 'Santa Claus rally' as expected last year--  everything is relative.

Let's see if the bulls can find some footing, or if we are going back down to retest those lows.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Utopia for the Paper Gold Alchemists

"An acute shortage of readily marketable physical gold is developing that we believe will deepen in years to come. This possibility seems to be unrecognized by those who are short the gold market through paper contracts.

The relentless dumping of synthetic or paper gold contracts since 2011 by speculators in Western financial markets has caused the shortage. The steady selling has driven down the price of physical gold, hobbled the gold-mining industry, and drained the stores of gold held in the vaults of Western financial centers.

We believe that the shortage will worsen because (1) the precursors of production (exploration, discovery, reserve life) are very negative, (2) the mining industry has little financial credibility and seems unlikely to attract capital even with a big rise in gold prices, and (3) refining capacity limitations tend to create supply bottlenecks when physical demand spikes."

John Hathaway, Utopia For the Paper Gold Alchemists

John Hathaway of Tocqueville Funds has a newsletter, which supplied the quote above, that is worth reading here.

There were no deliveries in precious metals at The Bucket Shop yesterday.

And there was little net movement in the warehouses either.

Have a pleasant evening.