Gold Daily and Silver Weekly Charts - Venezuela's Gold Heads East - Ubi Caritas

"We suspect that shorting gold has come to seem like a riskless proposition as long as there is confidence in the Fed. Synthetic gold is the perfect substance for a carry trade: an easy borrow with very low carrying cost and little upside basis risk. Such a hypothesis, in our opinion, does much to explain the incongruity of a declining gold price while fundamentals for paper currency, and the U.S. dollar in particular, obviously deteriorate; while demand for physical gold has exceeded new mine supply for several years running; and while above-ground 400-ounce .995-gold bars located in London, New York, and other financial capitals (in cohabitation with speculative trading activity in paper markets) have steadily dwindled and disappeared into Asian financial centers reformulated as .9999 kilo bars."

Tocqueville Gold Newsletter 2Q 2015


"Though justice often moves slowly, it seldom fails to overtake the unjust."

Horace, Odes

Gold and silver held their ground and much of their gains from this week.

Koos Jansen reports that 36 tonnes of Venezuela's gold have been shipped to the refineries in Switzerland, a familiar stop for gold to be recast for the markets of Asia.

Next week we will see the second revision of 4Q GDP which is likely to be a downward revision. They like to sneak these in after the fact. But let's see.

There were no deliveries to speak of in The Bucket Shop yesterday. I have included the current inventories in the Comex licensed warehouses below.

This was a difficult week.  Often the best way to meet misfortune and adversity is to just keep on keeping on, and to bear in mind all of God's many tender mercies for us, which are so easily overlooked and forgotten when things do not go our way.

One cannot help but notice the growing ugliness and harsh bravado that seems to be all too fashionable among many who speak out, both on the internet and among the political and media professional class.

And it is especially appalling when one sees it among those who would otherwise think well of themselves, hold themselves up as examples, and claim to walk with righteousness.   These are our modern Pharisees, the nice looking, whitewashed containers, but full of decay, corruption, and dead bones.

In their self-delusion they think that rudeness and hardness is a sign of strength, and their proud ornamentation with self-importance, mere customs and ceremonies, a proper adornment to hide their violent, hard, and unloving hearts.  Lord, keep all innocents and simple souls safe from such tempters and their snares, even unto the death without end.

Let's see if the gold chart formation can progress next week and tell more about what the markets have in store for us.

Have a pleasant weekend.

Ubi Caritas is a hymn of the Western Church, long used as one of the antiphons for the washing of feet on Maundy Thursday. The text dates from the earliest Christian gatherings before any formal rites were established. This particular melody for this hymn was composed sometime between the fourth and tenth centuries.

SP 500 and NDX Futures Daily Charts - We're Going Wrong

Stocks managed to come off the lows and finished mostly unchanged. They tended to bounce off support on low volumes in a narrow advance, and without apparent conviction.

Have a mind for your fellows, and especially for your souls in these times of a coldness in the hearts of many.

Have a pleasant weekend.

Gold Daily and Silver Weekly Charts - Bid Limit Up, None Offered

“For where men have made the earth trodden underfoot, and have largely veiled the heavens themselves, it is but natural that they should think that they have made everything, and that it is they who rule it.”

Robert Hugh Benson, Lord of the World

The warning sign of a serious dislocation in the physical gold market may be when the price of physical gold for real delivery goes bid limit up, with none offered.   That is one scenario, perhaps not the most probable.  Most likely they would close the exchange for 'order imbalances' and to 'protect participants.'  And for the bullion bears, it would seem as though they were 'staring into the abyss.'

Probably an effect of some series of financial paper assets somewhere going limit down, with none bid.  Couldn't happen, right?

The data from The Bucket Shop is really not very instructive these days, except to paint the broader trends, and now and then let out the little 'tells' of problems behind the curtain, if you are adept enough to watch for them.

Just because you have a lot of detailed reporting does not mean it is useful.  Look at the US Labor Market numbers for example.  Complexity and detail there was a-plenty in Madoff's reports.  What he, like most frauds, were short of was substance underlying the false narrative.

And most of the indicators in the precious metals market that I watch tell of a tightness in the physical supply, and especially for gold.

Corroborative data is there if you look for it, in the huge physical buying in Asia, in the shrinking 'gold float' in London, and in the draining of physical supply from the ETFs and exchanges of the West.

Every so often something happens, like the failure of MF Global, that can be dismissed as a one off but that exposes the rot of leverage and multiple rehypothecation of physcial supply behind the facade of busines as usual by 'highly respected people.'

If things continue as they are now, I suspect that the tide of deceit and manipulation will be going out later this year.  And then we will see what has been concealed beneath the water line for so long.

I will be a little surprised if it shows up in this particular active month of February.  I am looking towards the latter part of the year.  But that story is not being told here in paperland, but in the markets of Asia, and the bullion centers in London and Switzerland.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Wobbling 'Confidence' Game

US stocks were giving up some of the recent gains today, which is no real surprise.

The advance of the last few days has been remarkably 'technical,' with no real participation from large institutional buyers.

Some have characterized it as 'retail buying' but from my vantage it looked more like manipulative algo buying, with some of the usual punting on the side. Wall Street wishes that mom and pop would come in and buy their dodgy paper yet again. Unfortunately mom and pop and their house account are in intensive care from the last four or five cons that the financial sector has run on them.

The Philly Fed this morning shows contraction again, for the sixth straight month I believe.

We are not just being badly served by well-intentioned but misinformed people. That is the 'Greenspan Defense.'

No, it is more of the self-serving and self-enriching actions of an effete group of prideful plutocrats and their willing servants. They succumbed to the principle that 'greed is good' and now are caught in a credibility trap of their own making and consequences.

And like the amoral narcissists and pampered and privileged clerks that they really are, they are mightily looking for someone else to pick up the tab for their dalliances on the dark side of their own self-serving delusions.

The peasants sense that something is wrong, and that they are being lied to on a systematic basis. And they are rejecting the usual brands being offered up by the corporate cliques for their presidential choices.

Is there anything in all of this that is not yet clear? There is no hope without real change.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Gold Shows Some Resilience

Gold and silver were hit early in the overnight, and there was some obvious quote stuffing and other gimmicks in the gold futures to take the price lower. Don't take my word for it, it was Nanex that printed this and showed the data.

And gold once again would not be denied, and held the 1200 level and then some.

Let's see how we keep going in this potential chart formation.

Silver is lagging a bit here, which makes some sense because this is still a 'safe haven' trade despite what Goldman might say about anything.

And as you know, if things continue as they are, I do expect a 'dislocation' in the physical gold market, probably later this year.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Goldman Says 'No Fear' and Market Listens

Stocks were in rally mode today and the release of the Fed minutes was no impediment as they held their gains into the close.

This looks very much like a technical, 'short squeeze' rally, which is somewhat narrow in scope and with declining or flat volume as the indices push higher.

I am getting a desire to buy some volatility again around here, but perhaps I will wait to see what happens tomorrow.

Have a pleasant evening.