Jesse’s Café Américain: Gold Daily and Silver Weekly Charts – Fed Will Backstop a Run On the Excha nge

If you are investing in paper gold you are not investing in gold. Its paper people. It has an a never ending supply. When the Comex runs out of available physical supply to satisfy demand, they simply will terminate the delivery option and hand you dollars, fresh from the Bernank’s printing press. Get you wealth in physical gold before it is too late.

Jesse’s Café Américain

“He who makes a beast of himself gets rid of the pain of being a man.” Samuel Johnson

25 May 2012

Gold Daily and Silver Weekly Charts – Fed Will Backstop a Run On the Exchange

The situation remains rather volatile and open to an exogenous event.

Gold has not yet broken its downtrend. We do have the option expiration under our belts at least and are entering a heavy delivery season.

I thought it was interesting that the US government has directed the Fed to backstop the Comex and ICE in the case of a liquidity event or a run on the exchange.

In that event be ready to accept a forced settlement in paper, and to possibly forsake any metal held in custody at an exchange depository to a soft confiscation, ie it was not there in the first place and will be lost in a wave of defaults.



Jesse at 4:08 PM

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