Draining Physical Gold From Funds and Trusts To Supply the Markets of Asia - An Extreme In Speculation

Numbered — God has numbered your reign, and will end it.
Weighed — you are weighed on the scales, and found wanting.
Divided — your power will be divided up and given to others.

Daniel 5:25-28


“QE [quantitative easing] puts beer goggles on investors by creating a line of sight where everything looks good."

Peter Boockvar

It is interesting, but little noted, that during similar price declines, physical gold is removed from the funds and trusts, while silver remains almost untouched.

That is because the 'gold float' of physical gold available to supply the steadily aggressive demand is critically low, whereas silver, while also beaten down by speculators, sees no decline, because there is an adequate supply of physical silver, for now.

Compared to the physical delivery market of Shanghai, the NY Comex looks like a game of Liar's Poker, an exercise in pure speculation, almost like a bucket shop.

The number of 'claims per ounce' in gold has risen once again to 315 claims per ounce offered at these prices.

In the way that the Fed implements it, Quantitative Easing is like beer goggles for financial paper.

A purposely misaligned, an arbitrary valuation and mispricing of risk in any asset class, commodity or currency, can be sustained only by force and fraud. As the fraud becomes weaker and less effective, the force must increase.  Eventually the scheme breaks down, and a more market-based equilibrium will reassert its presence. That is monetary or value theory based on history. 

Gold is moving from West to East, and is unlikely to return anytime soon, and at anything near to these prices.

Our markets will have been weighed, and found wanting.

Stocks and Precious Metals Charts - Mean, Nasty, and Entitled - Our Low and Hypocritical Elite

Mammon, God of Markets

"Wherever your treasure is, there the love of your heart will also be.  Your eye is like a lamp that provides light for your body.  When your eye is healthy, your whole body is filled with light.  But when your eye is sickened, your whole body is filled with darkness. And if the light you think you have is actually darkness, how deep that darkness will be.

No one can serve two masters.  For you will hate one and love the other; you will be devoted to one and despise the other.  You cannot serve both God and Mammon."

Matt 6:21-24


"Beware the leaven of the Pharisees, which is a pious, hollow hypocrisy."

Luke 12:1

How lucky we are to have such important and accomplished luminaries to guide us, as demonstrated by these these elite creatures from all the finest institutions.

Today was the end of the third quarter, and the paint was drying on the tape.

I think US equities are approaching another short term blow off top.

And the vulnerability of the markets to a trigger event is likely to be heightened for the next month or so at least, until some of this reckless disregard for risks becomes resolved.

Gold and silver especially had nice rallies today. I was pleased because I took new position in silver yesterday along with some gold. I don't take trading positions in silver all that often, but it seems to have been beaten down substantially enough to demand some attention.

The smackdown in silver and gold yesterday was so obvious and heavy-handed as to remarkable.

I cannot say if they have put in a durable bottom or not. And I am not sure how they might react in the case of a major market dislocation in equities. But the antics of Wall Street are so clumsy and brazen now that only the ruling elite and its regulators could miss it— along with the other courtiers and poobahs in the employ of the moneyed interests.

Puzzling evidence— 

Next week we will see a Non-Farm Payrolls report for September.

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

Have a pleasant weekend.

Stocks and Precious Metals Charts - Living the Dream - Life Imitates High School

"You who make wicked judgements,  who write oppressive laws, to deprive the needy of justice, and to rob the poor of their rights, that widows may be your victims, and that you may make the orphans your prey— what will you do on the day of reckoning, when the consequences come from afar? To whom will you run for protection, and where will you hide your wealth?"

Isaiah 10:1-3

Gold and silver were lower today as the Dollar regained some strength within its recent trading range.

It may be cynical, but I also expected gold futures to take a gut check after the recent expiration. And there it is.

Stocks were marginally higher on a renewed appetite for risk, although they gave up much of their gains into the close.

I did not have the opportunity to watch the confirmation hearings on television today, which seemed to occupy most channels.

Life, indeed, imitates high school.  Especially among a pampered, ruling elite.

We will be seeing a Non-Farm Payrolls report for September next Friday, as well as the ISM Manufacturing and Service numbers.

Have a pleasant evening.

Stocks and Precious Metals Charts - Whited Sepulchers, Legions of Swine

"Those among the rich who are not, in the rigorous sense, damned, can understand poverty, because they are poor themselves after a fashion; but they cannot understand destitution.   Capable of giving alms, perhaps, but incapable of stripping their own souls bare, they may be moved to the sound of beautiful music, to Jesus’s sufferings, but His Cross, the reality of His Cross, will horrify them."

Léon Bloy


“Woe to you, learned scribes and the elite— hypocrites!  For you are like whitewashed tombs which appear beautiful, but inside are full of dead men’s bones and all corruption.  You outwardly look righteous, but inside you are full of hypocrisy and wickedness."

Matthew 23:27-28


"My name is legion, for we are many."

Mark 5:6

The Fed raised its benchmark rate by 25 bp today.  The market had indicated a 100% probability of this according to the common measures.

They also removed the word 'accommodative' from their statement, which means pretty much nothing.

Stocks initially rallied higher, strongly.

And then Jay Powell, the Fed chair, conducted his press briefing.  And the stocks plunged, led by the banking stocks.

Gold and silver finished a bit lower, while the Dollar was slightly higher after an initial plunge.

Tomorrow the boob tube will be transfixed with the testimony with regard to the Supreme Court nomination of Kavanaugh, and accusations with regard to his character.

Someone on MSNBC today said that this was 'unprecedented.'  Are you kidding me?  They seemed too young to remember the Clarence Thomas, Anita Hill testimonies in 1991.  And who bothers to read history these days in the United States of Amnesia.

The testimonies absolutely transfixed the nation each night on television, and in prime time.  One night the people were given one perspective of things that happened, and the next night it was a a complete denial and reversal of opinion.  I was old enough to have followed it.  It was like a soap opera.

Our elite, and the pampered princes of privilege, are a legion of swine, infesting cities of whited sepulchers.

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

Have a pleasant evening.

Stocks and Precious Metals Charts - FOMC Tomorrow - Quiet Option Expiration on the Comex Today

"Most American investors unaware rehypothecation is widely practiced inside US, but more limited.   Rehypothecation will be the problem!

US law permits moving US client accounts from parent company to subsidiaries in other nations,which enables their use as collateral for loans usable to invest in other securities. Now, clients can specify their assets may not be transferable to a foreign jurisdiction. 

Jon Corzine used MF Global to transfer US client accounts to a subsidiary entity in London, where UK rules permitted much higher levels of rehypothecation (i.e .leverage up to 4X, US rule less than 1.5X). A iming to build giant enterprise w/other people's money, it blew up."

Dr. Harald Malmgren


"Whoever makes a fortune by a lying tongue
is chasing a bubble over deadly snares.

The soul of the wicked man desires evil;
his neighbor finds no pity in his eyes.

When the arrogant man is punished, the simple are the wiser;
when the wise man is instructed, he gains knowledge.

The just man appraises the house of the wicked:
there is one who brings down the wicked to ruin.

He who shuts his ear to the cry of the poor
will himself also call and not be heard."

Proverbs 21:6, 10-13

Stocks were listless to weak today ahead of the FOMC rate decision tomorrow.

Gold and silver were higher on a sightly weaker dollar.

Housing prices seems to be cooling.

Nike came in better than expected on earnings, and in-line with revenue. The stock was slightly lower after the bell.

Non-Farm Payrolls next week.

Have a pleasant evening.

Stocks and Precious Metals Charts - Black Swans a-Surfing - The Sorrows of Empire

"In my view it [QE] failed, 100 per cent.  It caused the stock market to go up because people took all that liquidity and invested it in the stock market, but it did not cause the economy to grow even 10 basis points faster. I  like to nickname quantitative easing monetary policy for rich people.

Steve Eisman


“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.”

Franklin D. Roosevelt


“Four sorrows are certain to be visited on the United States.

First, there will be a state of perpetual war.

Second is a loss of democracy and Constitutional rights as the presidency eclipses Congress and is itself transformed from a co-equal ‘executive branch’ of government into a military junta.

Third is the replacement of truth by propaganda, disinformation, and the glorification of war, power, and the military legions.

Lastly, there is bankruptcy, as the United States pours its economic resources into ever more grandiose military projects and shortchanges the education, health, and safety of its citizens.”

Chalmers Johnson, The Sorrows of Empire, 2005

Stocks opened lower this morning, and were weak most of the day.

Most of the stock losses evaporated in the afternoon, with the Nasdaq 100 turning green, and the SP loses only a little ground.

The metals were largely unchanged despite an early attempt to rally as the Dollar moved sharply lower.

There will be an option expiration for the precious metals on the Comex tomorrow. The contract month is more significant for gold than silver.

And because of the increase in wickedness, the love of most will grow cold.

Have a pleasant evening.