Firstly, regarding gold, we continue to stand aside, fearful of the long term bear market in the US dollar and the long term bullish trend for gold over the course of the past several years and fearful too of the fact that gold has “someone, or something” selling it in size and with near abandon whenever spot gold trades to 980-$1000. Yes, we fear both bullish and bearish news, for we can make both bearish and bullish cases for gold and are thus left to stand upon the sidelines watching. We are like Rosencrantz and Guildenstern then; watching great forces at work and wondering what is happening. At least, unlike them, we know we are powerless.

We do find the frenzy with which the gold bulls are pushing various conspiratorial theories these days interesting. We’ve been sent countless copies of reports suggesting that there is no gold in the NY vaults to deliver against the Comex futures; we’ve been sent countless copies of reports suggesting that there are efforts to remove the gold from those vaults; we been in receipt of dozens of reports telling the public that the gold pledged against GLD is not there and cannot be found, or if found is insufficient to meet the ETF’s demands; we’ve been sent reports telling us that bank holidays are only days or weeks away… and we could go on and on and on. The point here is that the conspiratorialists are out en masse, and they own gold in size and they are losing money.