Before I get to today’s titled topic, we have several very important matters to discuss. To start, it appears another of our long-time competitors is closing its doors, just as Tulving did last year. We cast no aspersions on our competition, but remind readers that in the essentially unregulated bullion business, one must be very careful who one deals with. There’s a reason we’ve been around 25 years with an A+ Better Business Bureau rating and zero registered complaints. Competitive pricing is certainly a mainstay of our “skill set,” but experienced brokers, honest dealing and industry-leading customer service are what have distinguished us in this highly commoditized business. And oh yeah, perhaps the internet’s best free economic blog and newsletter!
By now I must have written scores of columns on gold and silver price suppression. Many of these columns have posited on events that might change these anti-free market tactics. What I haven’t written about, however, is the group that is most adversely affected by the price suppression and, arguably, could do the most to change the status quo.
Another week passed and another week closer to the end of history’s most destructive financial experiment. This weekend alone, we witnessed further escalation of the “new Cold War,” China accusing a “sick” America of being a “disgusting, spying thief,” the largest Chinese supply-chain management company warning of “ongoing global macroeconomic weakness”; Secretary of Defense Hagel warning ISIS is more dangerous than al Qaeda, whilst UK Parliamentary leaders call for America to work with Syria’s Assad – you know, the guy we wanted to bomb last year – to destroy it; Francois Hollande dissolving the French government amidst expanding political and economic turmoil; Iran shooting down an Israeli drone, whilst the latest Gaza “cease fire” collapsed; expanded violence between India and Pakistan; and major San Francisco earthquake; and an Icelandic volcanic eruption that will likely be blamed for future economic weakness.
The advent of computer generated trading algorithms heralded a quantum leap forward in the quest for 24/7 control of markets. No longer were humans beings required to do such unseemly things as man trading desks or worry a whit if free markets were, if even infrequently, attempting to function. Algo precision has made even the blackest of black swan events seem to turn lily white in their utter non-eventfulness. No more significant Dow or bond crashes, and best of all, no gold rallies exceeding (exactly) 1.00%, or the occasional 2.00%
What shook the markets and economies this week?
How does it affect gold, silver and platinum prices?
Join us for our weekly wrap up with Eric Sprott to get his insights on how recent events in the market affect you!
COT Silver Report - August 22, 2014
Louis James, Casey Research's Chief Metals & Mining Investment Strategist, chats with Cambridge House Live anchor Vanessa Collette at the Sprott Natural Resource Symposium in Vancouver. Their discussion touches on Louis' global travel in search of investment opportunities, and the new incredible tax advantages for individuals in Puerto Rico, his new home.
The further markets become detached from reality, the greater the need for distraction. Justice is displaced by a rash of propaganda. The methods may be absurd, but they are effective. Over the summer, the big news in the world of silver has been the official end to the old (London fix) and the beginning of the new (electronic) fixing.
In last month’s “Most Resolute Precious Metals Bulls,” we wrote of how whether a certain technical analyst’s prediction that a major PM attack was forthcoming, we wouldn’t need the slightest bit of “resolve” to maintain our physical gold and silver savings – which insure us against the inevitable fiat crash, and don’t become less “valuable” when attacked by naked shorting. Regarding his reasoning, we disagree completely; as in our view, markets have been so distorted by government intervention, short-term technical analysis has become utterly useless.
Gold drifted lower this week, with the price undermined by lack of interest on low volume and a slightly more hawkish tone in the FOMC minutes released on Wednesday. The chart below, of gold and open interest on Comex, shows how the price has declined while open interest has hardly budged from its historically low level.