Tuesday, August 30, 2011

Tit for tat



3:51 am (Hawaii) I've been awake through the night, but ignoring the market. Can't say that's a good thing, but it's no bad thing either, not with the big questions and major uncertainty about the global economy, i.e. destruction of paper currency. It is nice, though, to see spot gold and silver up as London approaches closing time. This fluctuation in silver between 39 and 42 would be a sensible consolidation. But gold's fluctuations are not reasonable, not with the demise of the euro and dollar, not with orderly rises and declines.

Because of this morning's spike higher, it will be a matter of time before the CME imposes a third margin requirement hike soon. It's just a delaying mechanism; gold is going higher not because anyone wants it to, but out of necessity. Gold can no sooner be held down while the dollar sinks (due to inflation/mega-printing of dollars) than any living creature needs air.

Update 4:00 am Brother Turd notes that PMs are higher this morning after CNBC interviewed a Chicago Fed voting member.


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