Gold has spiked higher in the overnight markets, now above $1535. Copper continues to weaken. That combination says that gold is not sniffing out an inflationary burst from some future burst of economic growth.
If that were the case, copper wouldn’t be tanking here.
Take a peek at these two charts. Let’s your eyes wander from one to the other.
Gold up, copper down. That’s a sign of financial and/or economic stress, not a sign that rapid global growth is on the way.
Comes Failures Coming?
Anybody short gold here is eating some losses.
The concern here would be what happens if there’s a big run on Comex supplies and there’s a default of some sort?
Actually, that’s not a concern for me, but will be a moment infused with delicious schadenfreude and high fives with anybody nearby.
Why? Because I have been vexed by the games and manipulations played over the many years by the hedgies and bullion banks. They have been treating paper gold and silver contracts as their personal playground without any regard for the producers, the legitimate investors, or anybody besides their own narrow ends. If those efforts end in tears for them, then good.
It will be a rare moment of actions and consequences landing in the right spot.
Okay, it’s too early to start the victory jig, but you need to be aware there’s a real chance now of the price of gold shooting the moon from here.
by adam-taggart-2 
