Today's Action

Gold

Gold sold off during London trading, not the COMEX. The selling is not physical, but gold leases. London trading has been the same for a greatly extended period of time now, meaning a central bank is leasing its gold.

Very likely the UK Central bank will eventually be obliged to report that it will sell its gold, when it has already been sold in the form of batches of gold leases of the same gold many times over.

The UK central bank will not be able to get any gold back that it has already sold, the public perception will be that the UK Central bank is vending the public trust at a discount to rich foreigners at the taxpayer's expense.

GBN.V Share Price

The majority of trades in the GBN.V share price are arbitrage trades for delta hedging strategies, meaning that when U.S. Treasury prices rise, that GBN.V sinks. Today was no exception. The majority of trades pertain to these delta hedging strategies, since GBN.V is very strongly inversely correlated with the 30-year U.S. Treasury Bond price.

-F6