SP 500 and NDX Futures Daily Charts - Floating on Highs, But the Markets Seem 'Tense'

The markets seems a bit edgy, even given their stratospheric heights which *should* hold until year end at least.

There was more Fed taper talk today for their meeting next week. I doubt it, but they could do 'something.'

Have a pleasant evening.

Jan Skoyles Interviews Ben Davies On Gold and Silver

I found this to be interesting. Jan did a nice job on what seems to be her debut on a new show called 'Get Real.' As she settles into her role as interviewer I am sure the show will add quite a bit to the discussion of the precious metals and other commodities as well.

NAV Premiums Of Precious Metal Trusts and Funds - Sprott Gold Has 19,200 Ounces Redeemed

Premiums on the gold and silver funds remain depressed, show little sign of any short squeeze.

Interestingly enough another 19,200 ounces of gold bullion were redeemed from the Sprott Gold Trust. Apparently the premiums on physical gold make this an attractive proposition. There is no leverage in the Sprott fund that I can determine, so I doubt it is a risk factor that prompted the redemption.

Physical gold bullion is in tight supply judging by a number of factors including the forwards rates and the inventory levels at the ETFs and exchanges.

If I had unallocated gold at a dealer or a bullion bank, I would be inclined to move it to a storage only facility where I had very clear title and access if it was a long term holding.

And based on my own experience I am not sure I would trust an active bullion bank or dealer with the storage of even allocated gold. MFGlobal showed us how 'sacred' customer assets can be when the biggest claimants start lawyering up.

If the rehypothecation in the gold bullion market starts unwinding quickly it could get a bit muddy with cash settlements and crossed claims.

Gold Daily and Silver Weekly Charts

"As long as you are proud you cannot know God. A proud man is always looking down on things and people: and, of course, as long as you are looking down you cannot see something that is above you.”

C.S. Lewis

It appears that the bullion banks have the Comex warehouses prepared to meet December delivery.

Perhaps they can now start actually delivering into the standing demand.

The admonishment of arrogance is at hand.  Watch and be amazed.