SP 500 and NDX Futures Daily Charts - A Record Close on the SP 500

A better than expected on manufacturing in the ISM Index and a lighter than expected number of new unemployment claims had the bulls stampeding higher to a new record close on the SP 500.

Tomorrow is the Non-Farm Payrolls report.

Traders believe now that the Fed will keep printing money while inflation remains subdued.  Or at least that is the word for today.

A Forensic Investigation of Gold

This is interesting, but apparently somewhat tentative, which is understandable given the nature of the subject.

I am not in a position to assess it quite yet, but I thought it was worth sharing to see what you all might think. I intend to follow this closely and spend more time looking into it. Today I am preoccupied with the wonders of the healthcare system.

I find the opacity in these exchanges and funds to be somewhat frustrating as I am sure many do, as well as the lack of detailed independent audits and full and timely disclosure, especially with regard to what might be considered to be public information.

But still the effort can be made to untangle things as best we can.

Here is a summary of key points by Mr. Ferguson of the analysis.

"GLD was "funded" with gold leased out (sold) by the BoE and SNB.

With everything going on, not only are those entities no longer willing to provide supply, they're actually taking their gold back before it's too late.

Holders like Paulson and Soros are the "fly in the ointment" as they have a GLD claim on the same gold that the BoE and SNB claim as their own "leased" assets.

We are witnessing a managed, slow-burn "run" on the London vaults, where supposed "allocated" gold rests for entities worldwide but this gold has instead been leased out, not only to the GLD, but sold into the market and currently dangling around the necks and wrists of Asians as well as being recast into 1Kg Chinese bars."

Read the entire article here.

I would imagine it would be fairly easy for GLD to address any mistakes in this with a clear statement with regard to any claims or counterclaims on its bullion.

COMEX Registered Gold inventory Continues To Decline - A Litany in Time of Frauds

"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage."

John Kenneth Galbraith, The Age of Uncertainty

As a reminder of something we have discussed previously, the COMEX does not take legal responsibility for or audit the bullion inventories reported, as stated in the following disclaimer which they added to their records in June of this year.  They rely on the accuracy and integrity of the parties which report this and other information to them.

"The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness.  This report is produced for information purposes only."

I think this statement by the COMEX is quite clear and to the point.

It is possible to doubt anything. But sometimes we just have to accept that the data is what it is, without imputing to it anything more, or less, than what it may be. And that applies to most data that comes from the markets, which all deserve a measure of skeptical examination, things being what they are.

A broad and continuing review of all the data tends to provide the best and most reasonable approximation of what is real. Where several data sets from various sources resonate their agreement, we may proceed with more confidence than we might from a single source that is subject to error and other human vagaries.  And where there is disagreement of measurements in the form of conflicting data, then further examination is required to resolve and understand it.

Having said all this, the inventory which has been reported as registered and deliverable has continued to drop into the August delivery period which starts tomorrow.  

And since this and other data seem to indicate a shortness of supply against a continuing strong demand, which generally indicates a higher market clearing price ahead, this is something that we will all watch with keen interest I am sure.

But this is no 'sure thing,' unfortunately, given the propensity for the modern bankers to dictate protractedly their own reality by fiat, that is, by the power of the will, and their persuasive commands.  Such are the ways of empire, as they wax and wane in the character of their leaders.

"Boast not of what thou wouldst have done, but do
What then thou wouldst."

John Milton, Samson Agonistes

Stand and deliver.

Gold Daily and Silver Weekly Charts - Metals Batted Around on the FOMC

You might call today turbulent, but since the volumes on the markets were so insubstantial perhaps it is best described as an end-of-month dust devil.

The August contract holders in gold and silver start declaring their intentions.  Cash or carry.

Stand and deliver.