End of the Line - The Big Gold Bullion Short Overhanging the Market

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Published : February 24th, 2019
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Category : Market Analysis

"Time is coming when markets search frantically for physical collateral to find that paper far exceeds underlying collateral for several metals and other resources.   I am warning that when markets fall in sustained negative response to bursting bubbles, widespread deleveraging will reveal insufficient hard collateral underlying traded asset-backed securities. 

The words rehypothecation and hyper-rehypothecation may be rediscovered or remembered again, forgotten somehow during much of decade since the Great Financial Crisis."

Harald Malmgren

"Those who run Washington generally trust the inhabitants of think tanks of their political bent to provide the intellectual foundations upon which much of public policy is built.  At least in some cases, however, that trust couldn’t be more deeply misplaced, since cornerstones of the ever-expanding think-tank universe turn out to be for sale.

In other words, those experts you regularly read or see on screen, whose scholarship and advice Washington’s politicians and other officials often use, are in some cases being paid, directly or indirectly, by the very countries [corporations, and oligarchs] on which they are offering advice and analysis.  And here’s the catch: they can do so without ever having to tell you about it."

Ben Freeman

Although not exclusively, think tanks seem to be spin factories in service to some faction of the global political powers and/or the moneyed interests.

There was some news from Washington in the afternoon that the US and China had reached an agreement in principle on currency, and are going to be toddling along with the other, more difficult trade issues.

Gold took its correction from a short term overbought condition reasonably well, as did silver. Let's see how it can do next week.

There is a largely undisclosed 'short' position on gold bullion, that exists almost without regard to the paper shorts that ebb and flow in the trading markets.   As Harald Malmgren notes above, when that short gets called, it will leave a mark.

There will be a significant amount of economic data next week, some of which may be market moving.   I have included the calendar for next week below.

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

Have a pleasant weekend.

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