The gold price fell $10 per ounce after reaching almost $1,400 for the fifth time this week in London trade Friday morning. Silver held tight around $22.50 per ounce, managing only one-third of gold's 2.0% gain for the week.
Gold exchange traded funds saw their twelfth straight week of outflows last week, implying ongoing selling of their shares by investors. The largest gold ETF, SPDR Gold Trust, saw its total gold holdings fall to a 44-month low
Investors unsure of which way to turn in this market need only watch the "smart money," says Jeb Handwerger. Billionaires like John Paulson and Carlos Slim are plucking up mining investments on the cheap.
CFTC reports continue to show that net long positions in gold are being liquidated. Nineteen tonnes were shed in the latest reporting period on Comex. Long-silver specs unloaded 210+ tonnes from their logbooks and added 110+ tonnes to short positions.
So the UK now owes – in total – more than five years' entire economic output. According to McKinsey & Co.'s new Debt and Deleveraging report, the gross sum of all loans and fixed-income debt of the UK national, corporate, household and financial sectors stood at 507% of GDP.
Did Dr. Copper, the only metal with a PhD in economics, open its wallet for hedgies this year? Nope. The copper ETF (CU) is actually down 1%. Maybe it should go back to night school for another course in macroeconomics?
A GM bailout would delay restructuring and ultimately destroy jobs. Restructuring under Chapter 11 is the best solution, but credit market conditions require the U.S. government to provide transitional, "Debtor in Possession" financing. To avoid political interference, the actual lending decisions should be made by a commercial bank with a stake in the outcome.