Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
Sheffield Local Elections 2018 Forecast Results - 22nd Apr 18
How Long Does it take for a 10%+ Stock Market Correction to Make New Highs - 21st Apr 18
Sheffield Ruling Labour Party Could Lose 10 Council Seats at May Local Elections - 21st Apr 18
Crude Oil Price Trend Forecast - Saudi Arabia $80 ARAMCO Stock IPO Target - 21st Apr 18
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

Gold and Silver More 'Flight To Safety' Active February

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

By: Jesse

Commodities

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

http://jessescrossroadscafe.blogspot.com

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.


© 2005-2018 http://www.MarketOracle.co.uk - 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

6 Critical Money Making Rules