Thursday, December 11, 2014


Comex/Nymex memorandum S-7258 is an effort to maintain stability in the paper "gold derivatives" futures pricing mechanism as the physical markets for gold move Eastward (along with real world free market pricing credibility).

It is an artificial intervention (as are ALL derivative markets by their very nature) to suppress the volatility of a breakout in physical demand pressure that could affect the manageability of expectations / perceptions - as the physical plane overwhelms the financial.

This also helps to control the wind-down of the COMEX default by limiting dollar exposure as COMEX collapses and paper-only settlement ensues.

In essence, this measure is not as desperate as it seems, since it is only an insult to the intelligence of those too smart to gun the market anyway, and for the rest it serves as a "technicality" to factor into their TA and trading strategy.

For those of us who understand the changes taking place, it is quite predictable and makes perfect sense. From a "kick the can as far and as long as one can" standpoint it is the only play left - one does sacrifice a pawn or two, even in checkmate, just to try and prolong stalemate.

After all, what time buys is the opportunity, however unlikely, to hatch one more scheme to delay and deny the inevitable. And even 1 chance in a billion to defy fate is better than no chance at all. It's called human nature, and being human, we live and die by it.

We wait. Time proves all.

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