Precious metals flush out continues this morning, new lows in silver, looks like just a matter of time before the stops under the lows in gold get cleaned out too.
Interesting that given that I am totally open to all conspiracy theories I'm not really red hot on the gold manipulation thing, at least not big M type.
That would be despite the fact that I 100% believe what I wrote above- that I expect markets to get ever more phony and rigged going forward becasue that is implicit in the choices we've made, particularly about deciding that it is more expedient to just patch things together and keep the system running as it is rather than reassert the rule of law. Which might indeed have resulted in some temporary bad data prints.
But actually I'd have to admit that if I were king and could wave my wand I might like this- liquidity injections being channelled into "good" equities and homes, not bad commodities.
But there could be more, too. Intermarket relationships do evolve and break down over time so it could be that we're just seeing a fracturing of the All One Market where everything goes up on expanding liquidity.
What I do know, or at least believe is that charts tend to top ideology. You may be 100% certain that gold has to go up, for instance, but the chart was really bringing that into question going all the way back to when silver fell out of a parabola in June 2011 and then gold failed on a second run to the highs on very high volume and OI.
There is also the fact that there is a large amount of gold in some very weak hands- i.e. some of the one hit wonder hedge funders like Paulson who made massive fortunes shorting stuff into the crash (in Paulson's case he even had to have Goldman rig it for him) and then are regarded as geniuses, at least by themselves.
Much better that when you happen to hit the hillbilly lottery you repair to a private island with a bevy of hookers and a brick of cocaine.
