07 August 2018

Stocks and Precious Metals Charts - The Unspeakable - As Old As Babylon


“Evil when we are in its power is not felt as evil, but as a necessity, or even a duty.   Sin is not a distance, it is a turning of our gaze in the wrong direction.

Human beings are so made that the ones who do the crushing feel nothing; it is the person crushed who feels what is happening. Unless one has placed oneself on the side of the oppressed, to feel with them, one cannot understand.

Power is as pitiless to the man who possesses it, or thinks he does, as it is to its victims; the latter it crushes, the former it intoxicates.  The truth is, no one really possesses it."

Simone Weil


"As everything in what used to be called creation becomes a commodity, human beings begin to look at one another, and at themselves, in a funny way, and they see price tags. There was a time when people spoke, at least occasionally, of 'inherent worth'— if not of things, then at least of persons.

It is sometimes said that since everything is for sale under the rule of The Market, nothing is sacred.  Does anyone doubt that if the True Cross were ever really discovered, it would eventually find its way to Sotheby's?  The Market is not omnipotent— yet.  But the process is under way and it is gaining momentum."

Harvey Cox, The Market as God


"Those who are at present so eager to be reconciled with the world at any price must take care not to be reconciled with it under this particular aspect: as the nest of The Unspeakable.  This is what too few are willing to see."

Thomas Merton

Stocks were able to enjoy another lackadaisical summer day, with an upwards drift.

What is risk?  Something that can easily be ignored for the day, until it rises up and smacks us in the face.  But while the music plays, the dancing must go on.

Gold and silver caught a little lift on the slightly weaker dollar.   I am not so sure about silver, but gold is going to some day express its determined resistance to being treated like just another fiat currency.

Politics continues to distract and divert the public conversation.   And much of it is somewhat artificial and even arbitrary, and unrelated to the most pressing topic of the day, which is political and economic reform.

The 'lesser of two evils' is a political strategy, an engaging diversion, but not a real choice.

It is a convenient rationale designed to persuade you, the public, to accept one form of evil over another.  And if it is allowed to progress, it can lead an otherwise educated and civilized people to tolerate monstrous things—  and the unspeakable.

Such pride, such perverted justice, such hypocrisy, is as old as Babylon, and as evil as sin.

How then are we to resist, when most even of the faithful may seem to be falling away?

As I, and so many others have found, both recently and in times past, the only way to fill the emptiness of a heart either broken by loss or made unquiet by worry is with love, of God and God in others.  Defy the world with love, and a light will come into your life.

Need little, want less, and love more.  For those who abide in love abide in God, and God in them.

Have a pleasant evening.














06 August 2018

Stocks and Precious Metals Charts - Sittin' On Top of the World - Crossroads


It was a solid 97 degrees outside here today, with enough humidity added to make you wish to run back into the house.

These are the 'dog days' of summer, with apologies to Dolly. She and I went to a heavily forested local park in search of shade for our afternoon walk, and took off and played hooky for a while.

And we did not miss much. Stocks were drifting higher on a cloud of complacency, ignoring he trade war, and currency war, and the shootin' wars.

Gold and silver were lower as the Dollar ticked a bit higher.

Facebook stock was up a bit on the news that it was asking Wall Street Banks for financial information on their customers so they can better target products at them together.  Wonderful.

Need little, want less, love more. For those who abide in love abide in God, and God in them.

Have a pleasant evening.










04 August 2018

Transparent Gold and Silver Holdings From Funds and Trusts


Gold inventories in trusts and funds declined.   Silver inventories did not.

Even as the prices of both declined.

The largest gold trust is GLD.

Gold is held by HSBC Bank plc (the “Custodian”) in their London vaults on behalf of the GLD Trust.  And temporarily in unallocated accounts managed by subcustodians and bullion banks.
The Bank of New York Mellon, as trustee of the Trust, or the Trustee, and the Custodian have entered into agreements which establish the Trust's unallocated account and the Trust's allocated account, which are described in more detail in FAQs 18 and 19. The Trust's unallocated account is principally used to facilitate the transfer of gold between Authorized Participants and the Trust in connection with the creation and redemption of Baskets (a "Basket is 100,000 shares of the Trust"). The Trust's unallocated account is also used to facilitate the transfer of gold from the Trust for the payment of the Trust's monthly expenses. The Trust's Authorized Participants are the only persons that may place orders to create and redeem Baskets and, in connection with the creation of Baskets, are solely responsible for the purchase and delivery of London Good Delivery Gold Bars.

An unallocated account is an account with a bullion dealer to which a fine weight amount of gold is credited.  The bullion dealer may also be a bank.  Transfers to an unallocated account are made by crediting the number of ounces of gold being deposited to the account and transfers from an unallocated account are made by debiting the number of ounces being withdrawn from the account.  Gold held in an unallocated account is not segregated from the bullion dealer's assets.  Thus, credits to an unallocated account represent only the bullion dealer's obligation to deliver gold and do not constitute ownership of any specific bars of gold."

SPDR GLD Shares FAQs
Only authorized participants can add or redeem from inventories by creating or redeeming baskets of unit shares.

As of the latest quarterly report for GLD, Credit Suisse, Goldman, Sachs & Co., HSBC Securities, J.P. Morgan Securities, Merrill Lynch, Morgan Stanley, RBC Capital Markets, Scotia Capital, UBS Securities, and Virtu Financial BD LLC are the only Authorized Participants.








03 August 2018

Stocks and Precious Metals Charts - The Recovery™ - Jobs and Wages Drive Sustainable Demand and Thereby GDP


Caravaggio, The Calling of Matthew the Tax Collector
"We are slow to master the great truth that even now Christ is, as it were, walking among us, and by His hand, or eye, or voice, bidding us to follow Him.  We do not understand that His call is a thing that takes place now.  We think it took place in the Apostles' days, but we do not believe in it; we do not look for it in our own case.

I am a link in a chain, a bond of connection between persons.  He has not created me for naught.  I shall do good, I shall do His work. I shall be an angel of peace, a preacher of truth in my own place while not intending it, if I do but keep His commandments.

Therefore I will trust Him.  Whatever I am, I can never be thrown away.  If I am in sickness, my sickness may serve Him; in perplexity, my perplexity may serve Him.  If I am in sorrow, my sorrow may serve Him. He does nothing in vain.  He knows what He is about.  He may take away my friends. He may throw me among strangers.  He may make me feel desolate, make my spirits sink, hide my future from me—  still He knows what He is about.

Let us feel what we really are— sinners attempting great things.  Let us simply obey God's will, whatever may come.  He can turn all things to our eternal good. Easter day is preceded by the forty days of Lent, to show us that they only who sow in tears shall reap in joy. 

The more we do, the more shall we trust in Christ; and that surely is no morose doctrine, that leads us to soothe our selfish restlessness, and forget our fears, in the vision of the Incarnate Son of God."

John Henry Newman

The Non-Farm Payrolls Report came in light this morning, both in terms of jobs added and real wage growth.

The unemployment percentage went down a bit, but this is relatively meaningless.

I have included the US Labor Participation Rate as the first chart below.

Stocks managed a modest rally based largely on the momentum from this week led by Apple.

The US Dollar was flat.

Gold and silver managed to rebound from another short term oversold condition. Let's see if they can rally next week.

This may have some relationship with the US Dollar and the currency crosses. This was discussed intraday commentary that you may wish to read here.

Please remember Koos Jansen, one of the gold analysts from Bullionstar who specializes in Asian gold flows your prayers, that he may return to full health.  His commentary is missed.

Need little, want less, love more. For those who abide in love abide in God, and God in them.

Have a pleasant weekend.



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