Gold Daily and Silver Weekly Charts - Cap Cap, Gold, But Pop Goes Silver

An Erosion of Confidence

Precious metal prices jumped as stock prices took a dive this morning, but both were shoved back closer to 'the norm' by the end of the day.

Silver held up most of its gains, pushing up against resistance at 20. Gold is bumping its head rather hard against 1260.

The bullion boys were adjusting storage for delivery today, taking the total amount of deliverable ounces back up to the 496,000 level.   There was a little anomaly at Brink's that I have highlighted in blue, whereby about 523 ounces appeared courtesy of the adjustment fairies.  A drop in the bucket, as overall 56,306 ounces of bullion were warranted to the registered stash.

The goal is obviously to muddle through the February delivery period, looking for the calmer waters of non-active March.  As for the big sucking sound of bullion flowing from West to East, that can will be kicked down the road, until the road falls off el cliffo, apparently.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Prop Job

Equities looked like they were going to fall off the ledge today, but light selling met determined propping.

Non-farm payrolls at the end of the week.

The VIX remains rather elevated, so I would not say that stocks are in the clear yet.

Twitter and Pandora are getting spanked after hours, earnings report wise.

I own no equities now, and have assumed a very defensive investment position, but no short positions.  

Update On Joanie: And Thank You for Your Thoughts and Prayers

As you may recall late last year I asked you to remember a young girl named Joanie in your prayers, and many of you responded.  I received several hundred emails about this, and have discussed other situations that people responding have themselves.

Joan has a childhood osteosarcoma cancer. I do not know her or her family personally, except that her father is a visitor at Le Café and we had conversed on and off over the years.  He was very kind in remembering my wife in her own continuing struggle with cancer. I have never met them.

If you can do it, please try to remember Joan, and others like her and their families, many of whom suffer in silence, who struggle each day with burdens that we might find to be almost unimaginable.

Someone said to me, 'we all have our Joanies.' And yes unfortunately I think we do, at one time or another, some more than others.   But as the saying of Louis de Montfort goes, De Maria Nunquam Satis, 'Of Mary, there is never enough.'

And of love, there is never enough, for one who has accepted God's will.  Do not wait for God to send misfortune to your family personally, because there is much of it out there already. For all its absurdities, life is no joke. It takes a special love to care for the troubles of another. 

All in all, a faithful life is a cross, and not a featherbed.  And the more we do, the more it seems how little we have done.  But when you occasionally reach the clear air of a summit, amid the daily routine of life, a life of dying to yourself in part through caring for others in love, you can see a glimpse of the brightness of the day.

"For whosoever will save their life shall lose it; but whosoever shall give over their life for my sake, and the good news, shall save it."

Here is a brief message from Joan's eldest sister Leigh, who helps their good father and cares for her in the absence of their mother who has lately gone to God.

So if you wish to do something that is possible for anyone to do, that costs you little or nothing, read these words below, and then pray for someone in need.  Yes, we all want to be rich, to lead carefree lives, to be untroubled, to live la dolce vita.  And that is not possible, not in this world, except in our vain imaginings, and the distractions of transient pleasures that leave us unfulfilled, and wanting more.   But it is possible to respond to God's will, and pray, and thereby to discover a lasting joy, of which there is no equal.

And so include yourself in that prayer, if you would be wise. For none of us is good, except as we are made so by that which we love, and that to which we aspire. It is what makes us fully human, if our minds be so inclined to it.

"St. Jude's just recently performed scans that showed her disease has stabilized - no growth since the last scans on any of the tumors that have spread throughout her body (her bones, lungs and brain). This is wonderful to hear - it means we get more time with our sweet Joan.

At this point, she is pain free and only suffers minor symptoms of the chemo treatment (nausea, vomiting, appetite loss, fatigue etc.). She is an extremely happy and joyful girl who loves to read and play with toy horses - she could do this non-stop if you let her!

We are also delighted that her energy level is good and has stayed stable throughout the past month and a half, she is in no way bed bound, and loves to walk around the house and play with her new dog, Dixie!

We are humbled daily that Our Lord has given us such a marvelous gift of Joan in our lives.

St. Jude Children's' Research Hospital has been wonderful throughout this entire journey. We could not recommend it enough as a worthy cause to donate to. They have not asked for a penny throughout this past year and a half. We cannot express our thankfulness enough to the doctors and nurses who care for Joan daily.

Please, if we could humbly ask, keep praying for us and ask your readers to do this same. The only way to continue on this journey is with steady steps, embracing our crosses each day. Please pray that God will give us plentiful graces to continue on this slow journey to our heavenly home."

Related: Our Roman Adventure

Gold Daily and Silver Weekly Charts - Signs of the Times

"Ne respondeas stulto iuxta stultitiam suam ne efficiaris ei similis."

Prov 26:4

This is a Non-Farm Payrolls week, and it is a heavy delivery month, although as Rik Green notes the contracts standing are quite a bit less than at this time last year. Still, given the thin deliverables at these prices it should prove to be interesting.

Gold is moving from West to East, of this there is little doubt. Well, some can doubt it, but those who repeatedly deny it, or tend to dismiss it, may be saying more about themselves than they do about the market.

The more interesting question is what the markets are saying to us, and what the price, demand, and supply action are indicating with regard to the future, and the sustainability of certain noticeable trends.

The action on the Comex is interesting, but the real game is broader globally. There is a huge change underway, but unfolding slowly, in the international currency markets. If someone does not get this, then they really do not understand what is happening. There is no fault in that, because so few really understand money, and the lack of transparency is clouding, even moreso by the fog of war.

There was some movement of bullion into warehouse storage at HSBC yesterday, but otherwise little activity.  JPM seems to have the whip hand on the Comex and in the precious metals derivatives markets, but not so much in the physical markets which seem to be wiggling through the fingers of the bullion banks, and perhaps much to their dismay. 

As Ted Butler noted in his weekly review on Saturday:

"Quite literally, what JPMorgan does or doesn’t do determines the price of gold and silver. It’s easy to lose track of the big picture when one focuses on all the details. But when you step back a bit, JPMorgan is dominant in just about every detail."

Ted does an exceptionally good job of analyzing the Comex market, and I appreciate his efforts.  I do not need to agree with someone to gain significant benefit from what they have to say, provided their reasoning is based on some identifiable data and information.  Sources like this are a blessing.

I am rather reluctant to lay any wagers on JPM's motives based on this information however. It is not clear to me where their ultimate interests, as well as profits, may lie in this matter.  And for whom they may be acting, even as they seemingly take positions for their own accounts.

Unfortunately, this is the nature of the game, in times of currency wars.   Some of the TBTF Banks act as instruments of policy for their respective governments from time to time, and are certainly beholden to them.  Everything is not always as it may seem.  And so we must place our confidence where we can, and with some care.

Have a pleasant evening.