Observations on the market action and the implications of the gold and silver markets.
Friday, January 18, 2008
Silver Outside Reversal
This Friday, in New York, silver made an outside reversal day.
It traded lower than Thursday's intraday low, higher than Thursday's intraday high, and closed up from Thursday's close.
Maybe it has something to do with the negative silver lease rates. Who in their right mind would lease silver at a loss, and why?
"It is my idea," said Galt, "that the financial institutions of the
country, - I mean the insurance companies and the banks, - instead of
lending them selves out of funds in times of high prosperity ought then
to build up great reserves of capital to be loaned out in hard times.
That would keep people from going crazy with prosperity at one time and
committing suicide at another time. But they won't do it by themselves.
Somebody has to see to it, - some body who knows not only how not to
spend money when everybody is wild to buy, but how to spend it
courageously when there is a surplus of things that nobody else wants.
Every financial institution that I have anything to do with will be
governed by that idea, and the Great Midwestern properties, while I run
them, will decrease their capital expenditures as prices rise and
increase them as prices fall. When we show them the whole trick and how
it pays everybody will do it. We won't have any more unemployment. In a
country like this unemployment is economic lunacy." - The Driver, Garet
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