Loading ...James Mc…
Familiar patterns
Bill,
While gold struggles higher- 1% at a time- to escape its cartel dungeon it is doing so with all the signature cartel interference. Pressure on the Comex open, pressure at the NYSE open, mostly lower PM fixes, and of course the ubiquitous 1% rule are all evident. Just as evident is the pattern of lower silver access trade opens, now sitting at 120 out of the past 125. The RSI and MACD are now in overbought territory; potentially a sign that newly-leveraged spec longs are approaching the shearing phase of the sting. Gold open interest has also risen steadily since the last CME margin reduction, which historically has shown a cartel willing to supply endless paper in an effort to quell any and all rational exuberance. With India and China’s physical gold buyers showing extreme rational exuberance it will be hard to keep the dungeon door shut. The peculiar nature of the extreme measures being imposed on silver leads me to conclude it will ultimately lead gold higher. The nature of black swans is such as to be totally invisible, until it is painfully obvious. Some day the words “silver” and “black swan” will be indelibly linked.
If/when QE4 is announced gold should behave the exact opposite of what it did after the past 2 QE’s- in other words UP, not DOWN. After 6 years of stimulus QE4 will be the clearest sign yet that QEfinity, rather than tapering, will be the reality.
JMc