Most markets closed today in observance of Good Friday, although crypto never
closes for anything, and how would you even know if FX were open or not the
action is so pathetic? … in addition most of the world, excluding the Banana
Republic, will observe Easter Monday as well and be closed for that … all in all
a happy occasion for world traders as many will take a 4 or 5 day vacation
… some will take off all of next week.
As you would expect with most everything closed, and no earth shattering
headlines outside of P. Diddy and his budding troubles, crypto is relatively
quiet … but it is crypto, and as everyone should know, the only rule in crypto
is there are no rules for crypto, so anything can happen when volumes and
liquidity are somewhat light.
That was some close yesterday in gold … approximate $48 daily range, and a
final NY session range of about $33 … this is exactly what I’ve been saying we
should be roughly seeing for gold in NY [8 AM EST - 4 PM EST] given it’s price
of over $2200 per OZ. … SOMEWHERE IN THE 1.25% - 1.75%+ price movement
is a rough historical norm … give it a few more months / years, and with the
Dipshits the Banana Republic calls “leaders”, gold will continue to climb while
the ranges expand, and it probably won’t be that long before gold surpasses
the price of Ethereum [ETHUSD] and we get routine daily / NY ranges easily
above $100 per OZ. … “that mi amigos will be quite the shitshow circus
watching the FED / COMEX / LBMA / BIS gold cartel try and micromanage the
price as other exchanges in other countries take over the biz of trading
… especially physical spot trading we are seeing growing by leaps and
bounds in Shanghai, Moscow, and Dubai to name just a few”.
Many of you, especially those who live in the U.S., think the CME micro gold
futures contract [10 OZ. = 1 lot volume] is a good alternative to the LBMA
XAUUSD spot market … IMHO, I COULDN’T DISAGREE MORE! … depending on
the day and how active gold is, the LBMA consistently does 50X - 100X larger
per OZ. volumes than the CME … you aren’t gonna get any “deals” at the CME, I
can assure you of that! … and who is it that are the major players doing “arb” biz
between the LBMA and COMEX? … that’s right, the LBMA members … the CME
is 10 OZ. per 1 lot … LBMA can be traded in 1 OZ. increments … margins at the
CME are a helluva lot higher to boot! … but perhaps, depending on your
perspective, the most important detail is ZERO 1099 REPORTS TO THE U.S.
IRS ON ALL OF YOUR TRADES AT OFFSHORE BROKERAGE HOUSES THAT
SUPPORT LBMA GOLD TRADING … THERE IS NO REPORTING OF ANYTHING
TO GOVERNMENT AGENCIES, simply cuz the jurisdiction the brokerage house
operates in has no requirements for doing so, and the local government could
care less … you won’t find any U.S. domiciled brokerage house trading XAUUSD,
CUZ THEY CAN’T OFFER IT TO ANYBODY WHO RESIDES IN THE U.S. OR IS A
U.S. CITIZEN … which is fine, fuck ‘em who needs ‘em? … plenty of places
offshore to go and trade XAUUSD.
The biggest factor, IMHO, as to the bullish sentiment going forward are the
ChiComs … 1) we all know the ChiComs want [and will at some point] fully back
the Yuan with gold convertibility, and thus the need for ever increasing amounts
of physical gold to do just that … 2) already, China has cozied up to both the
Ruskies and Saudi Arabia, and is actively paying for crude oil with gold through
Shanghai settlement … they use the Comex to buy futures and swap via the EFP
[Exchange For Physical] portal and take delivery, and then convert that gold for
settlement for oil, thus receiving in the end more Yuan … and 3) the ChiComs
are enthusiastically extolling their billions of people to buy gold as an investment
… I guarantee you, every ounce of gold that hits China, from Swiss refiners or
wherever, will never see it leave the borders! … if the Chinese people want to sell
their gold, they’ll have to do it through a state owned bank and receive Yuan … it
ain’t leaving the country … and so it begs the question of why would the ChiCom
leadership stiff their own people and get them into gold ownership and then stiff
them? … they may be ChiCom thugs and murderers, but they ain’t stupid! … and
that means gold price corrections, when they come, should be shallow cuz of
the solid support from the PBOC and other central banks … the FED can play
all the games it wants on this side of the pond in attempting to suppress price,
even using the BIS to borrow gold to sell … but that gets gobbled up “el mucho
quicko”, and now what? … “hey Spicoli, got anymore of that there gold to sell?”
… and don’t forget, the Banana Republic is borrowing $1 TRILLION DOLLARS
EVERY 100 DAYS!, and supposedly the economy is humming along just fine
[sure it is] … imagine the level of borrowing if a deep recession or depression
comes along, which it surely will!
Interest rate cut expectations since the start of 2024 have been almost 100 bps
… under historical normal circumstances, that would be sending gold lower in
price … Whoops!, curve ball time! … it’s almost impossible for the Lounge
Lizards to raise rates, cuz doing so brings the end game of the “house of cards”
crashing down into a depression, where rates would then have to be cut quickly
and drastically … where does crypto and gold go then? … it sure as Hell won’t
be lower … at some point the U.S. population panics “bigly & yuge”, and the
rush to preserve and protect wealth will see gains never before seen on both metals
and crypto … one look at the Uniparty in “The Swamp”, and it’s about as close
to a guaranteed event as you can get … just remember what I have said before
… “It’s better to be 10 years too early, than 1 day too late!” … if you can’t see
the hurricane clouds on the horizon, you are either blind or delusional.
With gold closed today, I turned my attention to ETH … it had one chance today
to break higher and blew it … out of the NYSE gate for the first 15 minutes came
the small rally … that opening m15 high never got broken to the upside … after
75 minutes of chop, it broke down and the ZLMA, period 15 turned from white to
hot pink, signaling weakness in price … and down goes Frazier! … now into the
New York afternoon ahead of a Holiday weekend, I want no part of this thin
volume zero liquidity playground … blog update on Easter Sunday, and yes
Sparky the wonder dog got his deli roast beef for posing for an Easter Good
Friday pic ... he's now a happy camper!
… OUTTA HERE … “The future’s so bright I need 2 pairs of sunglasses 😎😎,
and my own Brinks armored truck” 💓!! … Onward & Upward!!
-vegas
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