10 September 2013

A Closer Look At the Gold Daily Chart - This Town


"Nearly all men can stand adversity, but if you want to test a man's character, give him power."

Abraham Lincoln

I think that the formation of the inverse head and shoulder is apparent.

Let's see if it breaks down, or activates by breaking up through the neckline.

As an aside, Google Blogger seems to be having some issues, and the quote on the header is problematic for now. These are not changes I have made.  I suspect someone messed with the header macro in Java, and I cannot fix that without a major rewrite of the template which I am loathe to start.

By the time I achieved something they would have fixed it, and I would have something non-standard and awkward to maintain.  Been there, done that, too many times.  Best to wait for whatever was broken to either be fixed or replaced by its pristine backup. 

They are making some changes, and have apparently broken something in the process. I thought that it was Yahoo which specialized in that sort of project management.

I am encountering some other problems with the site behind the scenes as well.

Let's give it a few days.  And the same patience is required for this gold chart formation to work itself through its current consolidation.

Life can be disappointing at times. And I think quite a few people have come to the conclusion that among those disappointment's is President Obama, the reformer, and the Congress.

I am about half way through This Town by Mark Leibovich. I do not know that I would recommend it for everyone, but I am enjoying it because quite a long time ago I swam in those waters, and had friends in the political business with whom I kept in touch.  I know the types, and some of the players, so the gossipy elements of the book are enjoyable.  I can easily see where they could become very tedious to someone who was not familiar or interested in that sort of thing.

Other than the personal details of famous and nearly famous people and their idiosyncrasies and antics,  the book is useful because it highlights the bipartisan dedication to personal advancement and greed that has possessed the heirs of the 'Me Generation.'   Politics is always a dirty business, and it therefore always attracts vile creatures.  But when their venality becomes not only accepted but the fashion, then their hypocrisy and toleration of soft bribery knows no bounds.

The book shows how bad things can get when virtue is no longer held in high esteem, and the shame of dishonour, dishonesty, and deceit no longer carries any social sanctions or financial repercussions.  It is the story of moral hazard written in capital letters.  And we are not done with it yet.

Reform in such environments is a risky business, because reform involves a shift of power.  And power brings out the worst in people. The cure is often as bad or even worse than the disease.  But change will come, one way or another.


09 September 2013

Deliverable Gold Bullion on the COMEX Continues Its Decline - Claims Per Ounce Top 56


About 17,000 ounces of gold were taking out of the COMEX registered bullion stocks on Friday. 6,319 ounces were changed from registered to eligible at JPM, and 10,705 ounces were taken out of Brinks altogether.

Total registered (designated deliverable) ounces of gold bullion at all COMEX warehouses dropped to a new low of 669,610 ounces of real gold bullion.

Total gold bullion of all types in storage at COMEX designated warehouses remains at a little over 7 million ounces.

As it says on their own spreadsheet, the COMEX believes these bullion reports are from reliable parties, but assume no liability for their accuracy or for any counterparty risk.

More charts such as claims per ounce will be added to this post as they become available.

Higher prices will most likely be required to motivate title holders of eligible bullion to move it into the deliverable category, so that it can be sold by the bullion dealers.

And those 100 oz. bars of fine gold that are delivered and removed will probably end up being refined and recast into 400 oz. bars in Switzerland, and shipped to the East, not to return to the COMEX and LBMA paper claims bullion game of musical chairs for a long, long time. And that is going to become a problem in the not too distant future.

Weighed, and found wanting.

Stand and deliver.



Gold Daily and Silver Weekly Charts - Gold and Silver Are No Longer Safe Havens So Buy Stocks In Blue Skies


The metals are no safe haven so buy stocks.

That was the subliminal message in today's trade, with the capping on the metals in the works while stocks were bid up on light volumes.

Buy equities now, because it is blue skies ahead.

The slow drain in gold inventories on the COMEX will continue until confidence in the financial system improves, or the paper gold supply hits the wall of reality and crumples.

Intraday commentary about the ongoing currency war and monetary theory here.

You may wish to read this to get the 'lay of the land.'  Not too many people really have a sense of it, and it could prove to be valuable to finding your way through the fog of war.  And while these things unfold slowly and history proves that our times are probably no worse than some times in the past 100 years, that does not mean that there are not unusually challenging times, over the near horizon.

Have a pleasant evening.






SP 500 and NDX Futures Daily Charts - What Taper, What War?


Stocks were on a tear today as the market shook off concerns about the Fed taper which could be coming at their meeting later this month, and the simmering military strike on Syria.

Stocks are getting a bit stretched on the chart. Some important news on the economic front comes out later this week, but the news from the Mideast will likely outweigh anything else.