Best of the Week
Most Popular
1.Stock Market Crash and Recession Indicator Warning: Extreme Danger Ahead - Harry_Dent
2. Is This How World War III Begins, In Almost Complete Silence? - Jeff_Berwick
3.Trump Wins 2nd Presidential Debate, Betfair Betting Markets Odds Bounce - Nadeem_Walayat
4.Why Krugman, Roubini, Rogoff And Buffett Dislike Gold - GoldCore
5.End of SPX Stock Market Correction Nears - Tony_Caldaro
6.Get Ready for the Future - Exponential Machine Intelligence Mega-trend towards Singularity - Nadeem_Walayat
7.US Housing Market Bubble II – It’s Happening Again! - Andy_Sutton
8.FTSE BrExit Stock Market Panic Crash Resolves towards New All Time Highs - Nadeem_Walayat
9.Can Trump Still Win Despite Opinion Polls, Bookmakers and Pundits all Saying Hillary has Won? - Nadeem_Walayat
10.Gold’s, Miners’ Stops Run - Zeal_LLC
Last 7 days
A Lot of Reasons to Stay Stock Market Short - 28th Oct 16
Gold Stocks Winter Rally - 28th Oct 16
$50 Trillion in Cash Is Sitting on the Sidelines Today - 28th Oct 16
Can Donald Trump, The Terminator Still Win the Election Despite, Pollsters, Bookies, Media and Pundits? - 28th Oct 16
How Big Is Your Gold and Silver Picture? - 28th Oct 16
Gold and Silver Connecting the Dots - 28th Oct 16
The Next Big Shoe to Drop – Student Loans - 27th Oct 16
The Twists and Turns of the Greenback - 27th Oct 16
Obamacare Is Draining Our Financial Reserves - 27th Oct 16
Brexit II: Is Donald Trump a False Flag? - 27th Oct 16
“Chindia” Buying Gold on Dips, 20% Corrections Are “Non Events” - 27th Oct 16
4 Incredible Market Forecasts You Have to See to Believe - 26th Oct 16
Silver Prices in an Exponential Financial System - 26th Oct 16
Rigged Election: Hillary and Trump Caught Partying Like BFF’s With Kissinger at Jesuit Gala - 26th Oct 16
The Current Message of Yield Curves: Inflation or Deflation? - 25th Oct 16
Broken Central Banks: 4 Quick Pix - 25th Oct 16
Government Stimulus is an Oxymoron, Debt to GDP - 25th Oct 16
Where Will Crude Oil Price Head Next? - 25th Oct 16
Diamonds in the Gold and Silver Mining Stocks - 25th Oct 16
Trump’s Gettysburg Address against the New World - 25th Oct 16
This Past Week in Gold - 24th Oct 16
Can Gold Continue To Rise, Since The Usd Is Moving Higher Too? - 24th Oct 16
Why are Americans Avoiding the Stock Markets; Fear or Lack of Money? - 24th Oct 16
The US Is NOT a Low-Tax Jurisdiction - 24th Oct 16
Stocks, Crude Oil and EURUSD Trend Forecasts - 24th Oct 16
Stock Market Another Month to Go? - 24th Oct 16
Large Sell-off in Stock Market Looming - 24th Oct 16
Ungovernability - 24th Oct 16
Stock Market Boredom Before The Storm - 24th Oct 16
Establishment Mainstream Media Elite Buys US Election for Hillary Clinton, Time Running Out for Trump - 23rd Oct 16
Inflation About To Explode Higher - 22nd Oct 16
Still waiting for SPX uptrend to kick off - 22nd Oct 16
Will a Rising US Dollar Crush Gold’s Fledgling Bull? - 22nd Oct 16
Why The Global Economy Will Disintegrate Rapidly Back to Olduvai Gorge - 22nd Oct 16
GLD Bleeds Out; Weekly Gold Update - 22nd Oct 16
Stock Market Investment Success Through the “Investment Rule of 72” - 21st Oct 16
The Final Bottom in Gold - WHEN - 21st Oct 16
Gold Green Lights Upleg - 21st Oct 16
Demand for US Mints Silver Eagles has ‘Returned with a Vengeance’ - 21st Oct 16
Central Bankers Can't Stop The Death Blow Of The Post US Election Recession - 21st Oct 16
The Fortune at the Bottom of the Pyramid: Golden Opportunity for Frontier Asia - 21st Oct 16
Have You Taken These 4 Simple Steps to Improve Your Trading? - 21st Oct 16
The Stock Market is an Accident Waiting to Happen - 20th Oct 16
It's Rally Time for Gold and Silver Equities - 20th Oct 16
Cashless Society – Risks Posed By The War On Cash - 20th Oct 16
China's insane Housing Market Will Tumble and Crash in 2017 - 20th Oct 16
Donald Trump Bounces Going into 3rd and Final US Presidential Election Debate - 20th Oct 16
Attention Please: Phase Two of the Gold and Silver Train Now leaving the Station. All Aboard? - 19th Oct 16
How to Successfully Trade a Stock Market Crash - Black Monday October 19th 1987 - 19th Oct 16
Tesla, Apple and Uber Push Lithium Prices Even Higher - 18th Oct 16
Silver, Debt, and Deficits – From an Election Year Perspective - 18th Oct 16
UK Property Market: Slow Growth Does Not Equate To Decline - 18th Oct 16
Trump Election Victory is in Your Power - 18th Oct 16
Stock Market More to Come! - 18th Oct 16
This Past Week in Gold and Silver - 17th Oct 16
A Falling Stock Market Cannot Be Allowed - Financial Repression Is Now “In-Play”! - 17th Oct 16
Commodities, Forex and Stock Market Trend Forecasts - 17th Oct 16
Stock Market Crash..or No Crash? - 17th Oct 16
A perspective on risk rally – Risks abound but Stock Market is Confident - 17th Oct 16
Bank of England Blames Brexit for Sterling Drop Inflation, Masks QE Money Printing Cause - 17th Oct 16
From Piety to Pride to Pity, America's Racial Divide - 17th Oct 16

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

The Power of the Wave Principle

Gold and Silver More 'Flight To Safety' Active February

Commodities / Gold and Silver 2016 Feb 03, 2016 - 06:55 PM GMT

By: Jesse


Gold showed some strength today in an add on to the flight to safety trade, even though there was a midday hit on price that was pure antics. The dollar moved lower and silver wallowed.

I posted an update to the NAV of Precious Metals Funds and Trusts today. Sprott has successfully absorbed the Central Gold Trust. It raised some cash and added substantially to their bullion and shares under management, so its a good deal for them. Let's see if time shows if it is a good deal for the trust unit holders.

But that NAV report shows the gold/silver price ratio around 78, which is historically very high. This is I think one indication that this is a 'flight to safety' into gold for the moment.

And February is an 'active month' for gold and that shows in the delivery report from The Bucket Shop which has seen 62,800 ounces of gold 'delivered' on the February contract so far.

Silver has seen not nearly as much action, and the amount of registered for delivery silver bullion is now shockingly low as silver goes. I have high hopes for silver this year, but not while the precious metals are rallying as a safe haven.

But I would say that if I happened to hold any gold or silver bullion as a longer term holding, I would not have it in any unallocated form, or in storage associated with the Western metals trade. I can definitely see a short squeeze as a possibility, and as we learned from MF Global, possession is nine-tenths of the law.

The 'cup and handle' formation for gold remains viable but not formed or activated.

As an aside, just by way of setting the level and not being too cryptic or misleading, my wife of 38 years has a stage IV colo-rectal cancer that at least for now has no cure. But they can control it, manage it somewhat, through surgery and chemotherapy, and they have been doing so for about five years. I have gotten to know the US healthcare system quite well. We have an excellent oncologist whom we just adore and a first class hospital in a large metropolitan area. This is why we are still here.

So on occasion I may be out of pocket, and there is no mystery to it. This is our life now. It is something we do, bearing up with the good and the ill, thanking all for His tender mercies. And I am with her every step of the way. I told her that I would be the day we first found out on a routine colonoscopy and they thought it was discovered early enough, but it was not.

What doctors do not understand about cancer even now is often a surprise to many. It is much better now than when my mother and father passed away from it some years ago, but it is still heavy on treatments which are expensive and non-specifically destructive.

And there are many different forms of cancer and they are not all the same. And each cancer can act differently and peculiarly from patient to patient, ebbing and flowing in their appearances, so many can get attracted to certain 'cures' that are correlated to a particular situation, a remission, but without genuine causation. The key factor seems to be to find a very good doctor in a very good and forward looking, patient oriented setting.

I also learned quite a bit more about prostate cancer lately, in addition to watching my father pass away from it ten years ago, but thankfully need to learn no more as it was good news. I will say that the biopsy for prostate cancer is surprisingly uncomfortable. And some of the misinformation floating about is also surprising, even among otherwise informed and intelligent people who again confuse anecdotal 'cures' with scientific cause and effect.

And this is just my impression, but too often research is being driven by private grants and money, and commercial incentives. I think the government is missing a huge opportunity here and for all the worst reasons.

I just wanted to put that issue on the table so you will understand my absences going forward as they occur. I don't need any real help on this, but your prayers are always welcome, always, as I remember you all, and I do.

By Jesse

Welcome to Jesse's Café Américain - These are personal observations about the economy and the markets. In providing information, we hope this allows you to make your own decisions in an informed manner, even if it is from learning by our mistakes, which are many.

© 2016 Copyright  Jesse's Café Américain - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2016 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife