NAV Premiums of Select Precious Metals Trusts and Funds

The premium on PSLV looks like a short squeeze or some other anomaly.

It does not appear to be otherwise rational given the relatively modest premiums on silver in quantity available at publicly quoted sites like Tulving.com which are offering silver in quantity at between 1.99 to 2.69 over spot for Maples and Eagles.

I think the higher premium on American Eagles is due to the restrictions on IRA ownership. Otherwise it makes little sense other than 'marketing.'

Perhaps something else is going on behind the scenes.

But given the low estimated cash levels in PSLV and the likelihood of another unit offering from their shelf that premium looks a little out of historical bounds.

Gold Daily and Silver Weekly Charts - Rounding Errors In the Big Scheme of Things

The markets did a 'pop and flop' on the 'better than expected' payroll numbers. While the number did beat expectations, it was largely due to temporary hiring for Christmas delivery and sales that was not properly deseasonalized.

I did not write something about this, but I do wish to point out something new. The BLS has always rounded the headline number of course, but now they are starting to round the 'raw number' as shown in the first picture below. That I have never seen before.

Considering that the headline number these days is around a couple hundred thousand, rounding the raw number to the nearest hundred thousand is almost bizarre.

Gold and silver moved around after the big rally at the first of the week. I think this is the market level they would have been at before the very conscious smackdown at the year end to make the mark-to-market on their short positions look better.

What next? Earnings season starts on Monday with Alcoa, and there will be another European debt meeting on Monday.

Have a great weekend.

SP 500 and NDX Futures Daily Charts

Sleepy day, typical of this first week with wide range in prices finishing largely unchanged on light volumes.

On Monday Alcoa kicks off earnings season.

Also on Monday there is another meeting on the Europe situation. That may drive some of the action.

The markets pretty much ignored the 'better than expected' employment report today and for good reasons. The beat was largely based on part time seasonal hiring that was not correctly deseasonalized.

Gold Daily and Silver Weekly Charts - QE à l'infini Selon les Besoins

In other words, QE to infinity as required.

That will be the solution the Fed will accept when the Treasury prints bonds that have no buyers except for the Fed and its cartel of banks.

Of course they will stop before infinity is reached. The only question is, "What will stop them?" Especially if they engage in off balance sheet shenanigans like certain types of swaps and mutual devaluation with other central banks for example.

Will the economy turn around and a combination of growth and inflation overcome the excessive debt burdens? Or will they simply reach a point and engage in a de facto default as Russia did and reissue a 'new dollar?'

These are the important questions to think about. But I doubt very much that the Fed will stand aside and allow a hard default on the bonds.   They will attempt to make the dollar look good by making all other currencies look bad. 

The default will be de facto and as nominal as the cynical toleration of a denaro buffo will allow.