“The years from 1929 to 1933 were, for America, a succession of breaking idols and abandoned faiths, some of them the notions of willful children, some deeply ingrained in the character of the nation … By agreement with the Government, Banks placed an artificial value upon certain securities they held. Those who did not know of the agreement assumed that the values were actual.” Gilbert Vivian Seldes, The Years of the Locust: America 1929-1932, Little, Brown, and Co (1933)
A determined bear raid on silver took it down hard. I was grateful that I had taken profits and fully hedged my positions into Friday close because I was concerned about another sneak attack by the trapped princes of paper.
What next? I think the metals are correlated with equities here, despite the shenanigans. So we will have to see if this will continue or just resume as the important June delivery period draws closer.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained recovery.
