Shanghai On Track For Record Year With 69 Tonnes Gold Withdrawn In Latest Week

"A lie would make no sense unless the truth were felt to be dangerous."

Alfred Adler

Pet rocks.

When The Wall Street Journal finally notices China.

Gold Daily and Silver Weekly Charts - Rebound - Option Expiration Next Week

“In a room where
people unanimously maintain
a conspiracy of silence,
one word of truth
sounds like a pistol shot.”

Czesław Miłosz

Gold led a stiff rebound off support at 1180 today as it just was not going to go any lower, and the wiseguys grabbed some profits off the table.

This was a very obviously short term oversold condition. 

Now we will see if gold and silver can put in a real bottom here, or something else.

Next Tuesday will be the August metals expiration at The Bucket Shop.  August is also an active month for gold.

I have included the latest 'owners per ounce' charts from Nick Laird at sharelynx.com.  They were able to knock down the open interest a bit, but could not produce more physical bullion for sale yet.

The Fed accidentally leaked its staff projections about rate hikes today.  It looks like one for this year and four more next year for about 1.26%.

I hope they wait for The Recovery to get on their magic bus.

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - Slippery Slope

 

US equities continued to slide today as the recent makeover rally designed to put some lipstick on some new tech pigs has continued to retreat.

Stock had their worst week of the year. I hope you were able to take something off the table.

New housing sales slumped badly according to this morning's economic data.

We are obviously in the rinse cycle now of the usual wash n' rinse mo-mo scam that substitutes for market price discovery these days.

Let's see if it keeps going or continues to stay well-behaving and responsive to the whims of the algos and insiders.

Have a pleasant weekend.

 

NAV Premiums of Certain Precious Metal Trusts and Funds

The discount on CEF is remarkable.

The gold to silver ratio is quite high.

 

Both metals are oversold.

If the precious metals rebound silver will have quite a bit of catching up to do, and will likely outperform to the upside as they have outperformed to the downside.   Beta giveth, and beta taketh away.

Silver has done this over the last six months for example.

Gold Daily and Silver Weekly Charts - Though the Heavens May Fall

"No one today likes truth: utility and self interest have long ago been substituted for truth. We live in a nightmare of falsehoods, and there are few who are sufficiently awake and aware to see things as they are. Our first duty is to clear away illusions and recover a sense of reality.

If war should come, it will do so on account of our delusions, for which our tormented conscience attempts to find moral excuses. To recover a sense of reality is to recover the truth about ourselves and the world in which we live, and thereby to gain the power of keeping this world from falling apart."

Nikolai Alexandrovich Berdyaev

There was intraday commentary titled The Epicenter of the Next Financial Crisis and overnight commentary on the precious metals, Free Markets at Work.

I get the feeling sometimes that we have become a nation of conmen and their servants, who plague the great mass of people who are preoccupied with raising families and just getting by.

As we have seen, in the latter part of the 20th century, people had forgotten, or more properly had been persuaded to disregard, the lessons of history and the reforms put in place in the 1930's.   And to our regret the conmen and their enablers were able to get their hands in our pockets, and grab hold of our wallets.  And we have not been able to get their slimy hands out of pockets yet. 

How fitting that in the next election we can once again consider voting for a Bush or a Clinton.  Some choice.

When the time comes, and it is coming as it always does, we should forgive, but not forget. 

And we should let justice be done, though the heavens may fall. 

Have a pleasant evening.