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PSLV is carrying such a large premium, and is so low on cash holdings indicating a secondary offering may be coming, that I would not buy it now personally at this price in lieu of other ways to play silver for a trade, without the intention of taking physical delivery at some point.
Additionally I would never own GLD or SLV except for the most cynical day trade, if then. But that is a preference.
And the O-Man can be Aunty.
“Great occasions do not make heroes or cowards; they simply unveil them to the eyes of men. Silently and imperceptibly, as we wake or sleep, we grow strong or weak; and at last some crisis shows what we have become."
Brooke Foss Westcott
Gold and silver look particularly good in times of thuggery, deception, and the willful arbitrariness of the powerful to promote their own interests, the public be damned.
However, the markets are still clearly signalling that they believe that cooler heads will prevail, and there will be a fresh opportunity to game the market and steal from the many.
The US made a tragic mistake in not pursuing real reform earlier on, and speaking out for it forcefully when they had the momentum and opportunity. Co-opting the reform movement and turning it into a tool of the monied interests was a stroke of genius.
The best lack all conviction, while the worst are filled with passionate intensity.
Tomorrow is option expiration on the Comex. I hear that there are quite a few call options open around the 1600 strike. So we would expect the price of gold to get hammered down below 1600 sometime this week.
When options are in the money, they are converted into open futures contracts. So there may be a lot of new holders of futures contracts who get a stiff gut check on Wednesday through Friday, if it does not come tomorrow.
"When you spread out your hands in prayer, I will hide my eyes from you; even if you offer many prayers, I will not listen. Your hands are reddened with blood; wash and make yourselves clean. Take your evil out of my sight. Stop doing wrong, learn to do right. Seek justice, encourage the oppressed...
See how the faithful city has become a harlot. She once was full of justice; righteousness used to dwell in her, but now it is filled with destroyers. The silver of your goodness has become waste, the wine of your virtue is diluted. Your rulers are rebels, companions of thieves; they love bribes and seek after gifts...
My kingdom will be restored by justice; those who repent will be reborn. Those who desert the Lord will be consumed by shame, but rebels and sinners will be cast out into the void, forever."
Isaiah 1:15-29
Great drama in Washington. Does anyone recall that there was a budget surplus in Washington not ten years ago? What transpired to change that is unfunded wars on two fronts, and tax cuts for the wealthy to promote growth in support of a trickle down economic theory that is a hoax. And of course the financial crisis from the banking bubble and the decline in employment and associated tax revenues.
The markets are signalling that they do not think the US will default. But as the week progresses, and if nothing changes, look for a possible flash crash to signal to Washington that their apparent nonchalance is misplaced.
They could accidentally stumble over the cliff, and there are some large financial firms and powerful people that would welcome this.
Speaking of tumbling over a cliff, Netflix is getting hammered after the bell on a brief glimpse of reality in their quarterly financial report. I spent years as a product manager, doing all the planning, operations and pricing. When I saw their new pricing proposal I assumed that they were planning on exiting the DVD business for some cost based strategic reason. If this is not the case, someone should lose their job.
If I were ever to give any advice to a leader in troubled times it is this:
"I am a firm believer in the people. If given the truth, they can be depended upon to meet any national crisis. The great point is to bring them the real facts."
Abraham Lincoln
For all his eloquence and presence, Obama is one of the more timid and abstract communicators I have seen. And this makes people suspicious of him. It makes it appear that he has something to hide. Does he even know how to use a visual aid like a chart? He needs to stop being overwhelmed by the spin in his message, and start using it to convey real information and thereby make his case. There are a few intelligent people out there, but he is losing them quickly.
