by Theodore Butler
Silver Seek
I know I may be dating myself, but that was the title of a popular children’s song (circa 1953) by the comedian Red Buttons that came to mind as I contemplated the truly strange events occurring currently in gold and silver. Perhaps intended to demonstrate that my musical tastes have evolved, another question arises – what business does a 73 year old have in listening nonstop to the Red Hot Chili Peppers? https://www.youtube.com/watch?v=gm-vvSfBsbA
There truly are strange things occurring in gold and silver, things I not only have never observed previously, but also nearly impossible to explain in rational terms. The two main things most strange are the extremely wide discounts of spot gold and silver to the most active COMEX futures months and the sudden large inflow of physical gold deposited in the COMEX gold warehouses. There is little question in my mind that the two strange occurrences are very much related, although it has taken me a bit of time to come up with an explanation.