Gold and silver were hit by a trailing stop boogie woogie this morning, a half feeble effort to shake out the long who are running their stop loss orders a bit close. These sorts of things do not bother us because we have an intermediate to longer term investment horizon, right? lol.
Otherwise gold and silver finished largely unchanged on the day.
Much more interesting than this lazy Summer trade is the World Cup game in progress, with Germany dominating Brazil, 5-0.  The Germans unleashed a four goal torrent in a six minute period of the first half. I thought one of the goals was a replay.  Brazil has not allowed five goals in an entire World Cup series since 1998.Â
Well you know what they say, lucky in the World Cup, unlucky in holding on to your gold reserves.
We *might* see some precious metals action in the latter part of July in the metals, based on some things the BRICs may be doing and some derivatives related events, but I am not overly excited about it yet. The Fed has the markets in hand it appears.Â
In response to a couple of emails IÂ would like to take a minute to remind you all again that the Federal Reserve system is owned by their member banks, who receive a 6% dividend for their shares from the profits that the NY Fed makes on its market operations.
It is not a government entity. It operates under the license of the law passed in 1913.  The Fed has not always existed, and the central bank in the US has an interesting and sometimes controversial history.
Although the government has some oversight, which the Fed peddles hard on their own websites, and can take measures if they have the will for it,  the Fed is a private institution with a significant amount of its market power concentrated in New York. The Fed has its own level of ‘opaqueness and independence.’  One can debate whether this is a good thing or a bad thing, or just a thing. But I did want to reiterate that popular misconception.
