02 November 2016

NAV Premiums of Certain Precious Metals Trusts and Funds


Sprott continues to add units for cash and metals.

CEF has decreased their cash and the number of units outstanding since the last time that I noted their holdings.

I did not see a recent press release with regard to any buying back of units for cash.


Competing Crime Families Crony Capitalism - The Dark Heart of the Credibility Trap


The Republican and Democrat insiders seem like two competing crime families, struggling for control of the spoils—  like the Marranzanos and Lucianos, for example, in 1930s New York.

Or maybe Bill and Hillary are just a better educated, more fortunate, white collar version of Bonnie and Clyde.  Someone certainly selected Bill for 'greatness' and quite a few breaks for a kid from Hot Springs early on.  And Hillary wears her ambition like Lady Macbeth.

As for Trump, the outsider, in the end he may be less like Thomas Dewey than Dutch Schultz.

"They are also the grandees of our national media; the architects of our software; the designers of our streets; the high officials of our banking system; the authors of just about every plan to fix social security or fine-tune the Middle East with precision droning. They are, they think, not a class at all but rather the enlightened ones, the people who must be answered to but who need never explain themselves...

The dramatis personae of the liberal class are all present in this amazing body of work [Podesta emails]: financial innovators. High-achieving colleagues attempting to get jobs for their high-achieving children. Foundation executives doing fine and noble things. Prizes, of course, and high academic achievement.

Certain industries loom large and virtuous here. Hillary’s ingratiating speeches to Wall Street are well known of course, but what is remarkable is that, in the party of Jackson and Bryan and Roosevelt, smiling financiers now seem to stand on every corner, constantly proffering advice about this and that. In one now-famous email chain, for example, the reader can watch current US trade representative Michael Froman, writing from a Citibank email address in 2008, appear to name President Obama’s cabinet even before the great hope-and-change election was decided (incidentally, an important clue to understanding why that greatest of zombie banks was never put out of its misery)...

Hillary Clinton staffed her state department with investment bankers and then did speaking engagements for investment banks as soon as she was done at the state department. Of course she appears to think that any kind of bank reform should 'come from the industry itself'. And of course no elite bankers were ever prosecuted by the Obama administration.

Read these emails and you understand, with a start, that the people at the top tier of American life all know each other. They are all engaged in promoting one another’s careers, constantly.

Everything blurs into everything else in this world. The state department, the banks, Silicon Valley, the nonprofits, the 'Global CEO Advisory Firm' that appears to have solicited donations for the Clinton Foundation. Executives here go from foundation to government to thinktank to startup. There are honors. Venture capital. Foundation grants. Endowed chairs. Advanced degrees. For them the door revolves. The friends all succeed. They break every boundary.

But the One Big Boundary remains. Yes, it’s all supposed to be a meritocracy. But if you aren’t part of this happy, prosperous in-group – if you don’t have John Podesta’s email address – you’re out."

Thomas Frank, Podesta Emails Show Who Runs America and How They Do It


"Most of them became wealthy by being well connected and crooked. And they are creating a society in which they can commit hugely damaging economic crimes with impunity, and in which only children of the wealthy have the opportunity to become successful.   That’s what I have a problem with.   And I think most people agree with me."

Charles Ferguson, Predator Nation


"Larry [Summers] leaned back in his chair and offered me some advice. I had a choice. I could be an insider or I could be an outsider. Outsiders can say whatever they want.

But people on the inside don’t listen to them. Insiders, however, get lots of access and a chance to push their ideas. People — powerful people — listen to what they have to say. But insiders also understand one unbreakable rule: they don’t criticize other insiders."

Elizabeth Warren, A Fighting Chance


"Our plutocracy, whether the hedge fund managers in Greenwich, Connecticut, or the Internet moguls in Palo Alto, now lives like the British did in colonial India: ruling the place but not of it."

Mike Lofgren, The Deep State: The Fall of the Constitution and the Rise of a Shadow Government, 5 January 2016

Related: The Bullet or the Bribe
               Changing the Culture of Wall Street Requires Ending Continuity Government in Washington



01 November 2016

Gold Daily and Silver Weekly Charts - Gold and Silver Rally on Uncertainty, Worries For the Status Quo


The VIX spiked higher today, and gold and silver rallied with the Swiss franc as the market felt a chill of Winter run up their backs.

Conventional wisdom points to the sudden rise of Donald Trump in the polls, pulling even with Hillary, at least in the popular vote.

To sharpen it down to a fine point, today was all about the fear of the unknown, for those who are so comfortable and accustomed to be winning.

The 'establishment' does not care one bit for this added uncertainty.

But we also have the central banks mucking about, and plenty of global tensions to go around that are normally pushed aside by the market mavens.

But every once in a while they pause in their exceptional giddiness, and begin to wonder, and to think about the real future may hold for them.

Let's see if gold and silver can add to the gains, or at least get past the FOMC and the NFP numbers on Friday unscathed.

Have a pleasant evening.






"Wonderful providence indeed which is so silent, yet so efficacious, so constant, so unerring. This is what baffles the power of Satan. He cannot discern the Hand of God in what goes on; and though he would fain meet it and encounter it, in his mad and blasphemous rebellion against heaven, he cannot find it.

Crafty and penetrating as he is, yet his thousand eyes and his many instruments avail him nothing against the majestic serene silence, the holy imperturbable calm which reigns through the providences of God. Crafty and experienced as he is, he appears like a child or a fool, like one made sport of, whose daily bread is but failure and mockery, before the deep and secret wisdom of the Divine Counsels.

He makes a guess here, or does a bold act there, but all in the dark. He knew not of Gabriel's coming, and the miraculous conception of the Virgin, or what was meant by that Holy Thing which was to be born, being called the Son of God. He tried to kill him, and he made martyrs of the innocent children; he tempted the Lord of all with hunger and with ambitious prospects; he sifted the Apostles, and got none but one who already bore his own name, and had been already given over as a devil.

He brought into the world the very salvation which he feared and hated. He accomplished the Atonement of that world, whose misery he was plotting. Wonderfully silent, yet resistless course of God's providence! 'Verily, Thou art a God that hidest Thyself, O God of Israel, the Saviour;' and if even devils, sagacious as they are, spirits by nature and experienced in evil, cannot detect His hand, while He works, how can we hope to see it except by that way which the devils cannot take, by loving faith?"

John Henry Newman, PS 17

SP 500 and NDX Futures Daily Charts - Risk Off


Today was a 'risk off' day for whatever reasons one wishes to cite.

But it was a risk averse day. Take a look at the VIX.

It could be the uncertainty of the FOMC meeting and the Non-Farm Payrolls number coming out.

But it could also be Donald Trump's rise in the polling to have an even to slight edge chance against Hillary in the 'popular vote.'

So, as I said, the punters were pulling in their lines a bit, although stocks certainly came off the afternoon lows.

Have a pleasant evening.



31 October 2016

Gold Daily and Silver Weekly Charts - All Tricks and No Treats


I heard an interesting data point today from the public pollsters, that those who are very confident and comfortable in how things are going now are flocking to Hillary, while those who are very uncomfortable and lacking in confidence about the system as it is are flocking to Trump.

These are the two extremes. The broad middle seems to be struggling with a choice while they hold their noses, because the disapproval ratings of both candidates are historically high.

What this tends to imply is a great deal of dissatisfaction with either outcome, no matter who wins the election next week.

The dollar tried to rally today but faded into the close, along with stocks.

Gold and silver went out on their highs for the day, pushed up against near term overhead resistance.

We are now into the November delivery reporting for the Comex, which is really just the accounting for IOUs since little gold is actually delivered as can be seen from the actual warehouse report.

But at least silver should start showing a bit more 'spark' now.

Three central Banks, the US, the UK, and Japan, will pause from contemplating their navels and say/do something this week with regard to key interest rates.

I strongly doubt that the US will do anything because of the imminent presidential election.

Valeant Pharmaceutical is under criminal investigation for accounting fraud we hear today.  I would call it a good start, with quite a few more dodgy corporate crime families to go.

The World Series moves to Cleveland tomorrow, with hope springing eternal, or at least a reasonable approximation of it, in the long-suffering fans of both clubs.

Gold and silver are facing a real test this week, with the Non-Farm Payrolls and the FOMC.  Let's see how we come out of it.

Happy Halloween.

Have a pleasant evening.








SP 500 and NDX Futures Daily Charts - Banks and Criminal Culture and the Intersection Thereof


Stocks were weak today despite some attempts to rally them up.

The overhang of three major central bank meetings this week and the US Non-Farms Payroll had the punters sitting on the sidelines.

OPEC failed to agree on production cuts, so the price of oil slumped a bit today as well.

Two Ex-execs of Valeant Pharmaceuticals are being probed for fraud. I believe the stock has lost something like 80+% of its value since Bill Ackman pledged his fund's money to it.

Oh well, tomorrow is another day.

Have a pleasant evening.