from Jesse’s Café Américain:
Gold was weakly capped all day, but silver was the stonewall again. It went through the option expiration without barely a wobble.
There was some stopping of contracts in the gold market again, but precious little activity in the warehouses.
There was intraday commentary here. I had received several question from readers who were wondering about the impact of the unwinding of deals in China after the discovery that collateral was missing. It seemed counterintuitive that a lack of an asset in a leverage arrangement might cause the price decline of that asset. And it can in the short term.
The much great implication for this is the unwinding of the paper leverage against gold and silver in the West.
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