Gold and Silver, Fed Will Backstop a Run On the Exchange
Commodities / Gold and Silver 2012 May 26, 2012 - 11:11 AM GMTBy: Jesse
Gold and Silver, Fed Will Backstop a Run On the Exchange
The situation remains rather volatile and open to an exogenous event.
Gold has not yet broken its downtrend. We do have the option expiration under our belts at least and are entering a heavy delivery season.
I thought it was interesting that the US government has directed the Fed to backstop the Comex and ICE in the case of a liquidity event or a run on the exchange.
In that event be ready to accept a forced settlement in paper, and to possibly forsake any metal held in custody at an exchange depository to a soft confiscation, ie it was not there in the first place and will be lost in a wave of defaults.
By Jesse
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