by Andrew Hoffman
Miles Franklin
It’s Monday morning, and the Yen/dollar exchange rate is unchanged from Friday’s close. Thus, gold and silver should be unchanged, too – right? Which I say facetiously, as the premise I wrote about Thursday, based on 15 years of tick-for-tick Precious Metal experience, is again proven true. Which is, the “trading relationship” between Precious Metals and the Yen/dollar – just like their fundamental relationship – is pure fiction. At least, the ridiculous notion that the Bank of Japan’s attempts to destroy the Yen – with, say, “helicopter money,” is LOL, “bearish” for gold and silver.
Frankly, it doesn’t take rocket science to see that when the Cartel has the (temporary) upper hand – which, per yesterday’s article, in which I highlighted the “commercials”’ record short position, they are in desperate seeking – they create a “whatever is down” algorithm scheme, in which paper PM prices are conveniently linked to whatever the day’s “decline du jour” might be.