There are reports of shortages in both gold and silver bullion lately.

Anyone here buying physical lately and not able to get delivery?

Dealers may be sitting on inventory waiting for a recovery. Why sell below cost if you believe the current situation is an aberration, and that the eventual opposite reaction will be just as powerful?

Expect more of this in the months and years ahead. Engineers among us will recognize this as harmonic oscillation with a positive feedback component. The Tacoma Narrows Bridge disaster is a completely appropriate analogy.

Here is a fundamental truth: The market cannot hedge itself. You can lay off risk from one part to another, but you cannot hedge the whole thing. Someone is always left holding the bag. Someone always takes a loss.

I'm reminded of an old truism from the Soviet era - I forget who said it. "Communism attempts to prevent profits, and Capitalism attempts to prevent losses."

Both systems stand in the way of natural market forces, and for this reason, both will fail.

ebear