¤ The WrapI think it is absolutely crazy that we have allowed our markets to evolve into such a state where a small (less than 100) group of specialized trading entities (mostly not trading their own money) are determining prices for the rest of the world. Some will be quick to say that the COMEX or CBOT are not the only markets in the world, but that’s naïve. These markets set the price of metals and grains, period. Everything is based off these exchanges. This creates problems, since the traders setting the price (the technical funds) are completely distinct and separate from the real producers and consumers of commodities.
What makes technical funds technical is that they are only concerned with price change and not anything else; this is what separates them from the real producers and consumers who must contend with mining costs and profit margins. The technical funds only consider the price and not the underlying fundamentals. This is what makes the stories about pending economic weakness being signaled by lower copper prices ironic, because those who are creating the lower prices (the technical funds) don’t consider economic activity at all. - Silver analyst Ted Butler: 26 March 2014Today's pop "blast from the past" is one I've posted before, but it's been a few years. It's a tribute to George Harrison of the Beatles. He was no longer with us when this tribute was performed---but his son Dhani was---and he looks just like his dad! The tune is a classic---as are the all-star musicians. Prince is awesome---and the link is here---and it's definitely worth the trip! Today's classical "blast from the past" is a composition by little-known composer and piano virtuoso Henry Charles Litolff. He was born in London in 1818---and died near Paris in 1891. About the only music of his that still survives to this day is the Scherzo from his Concerto Symphonique No. 4 for piano and orchestra in D minor, Op. 102. It's a virtuoso piece that shows up mostly on recordings these days---and hardly ever in the concert hall. Too bad, as it's extraordinary---and the crowd just eats it up. The link to this 8:21 minute 2006 recording posted over at the youtube.com Internet site, is here. Enjoy. Another day with not much happening from a price perspective anywhere on Planet Earth yesterday. I've already discussed my COT/price concerns at length in my commentary on the Commitment of Trader Report at the top of today's column, so I shall not revisit the issue here at any length. Once again I'll post the 6-month gold and silver charts to indicate how this engineered price decline is proceeding. Can we go lower in price from here? You betcha---but that's entirely up to JPMorgan et al. Can we rally strongly from here? You betcha---that's also entirely up to JPMorgan et al. Forget supply---and forget demand. As Ted Butler has been saying for decades---and I happily agree---it's the technical funds being run up and down through buy and sell stops that sets the price---and when when JPMorgan wills it, the engineered price decline begins and they ring the cash register for fun, profit---and price management purposes. That's not just for all four precious metals and copper, it's all Comex-traded commodities that "da boyz" have hijacked. How did it come to this? But that's only part of the attempt by the powers that be to keep the whole world's economic, financial and monetary system from coming unglued---and they can't keep it up forever. But when the end comes, it will probably be ugly. At that time the precious metal will shine, but the world we live in after that will probably leave a lot to be desired. And on that happy note, I'm done for the day---and the week. Enjoy what's left of your weekend---and I'll see you here on Tuesday.