Loading ...8:48p ET Monday, September 10, 2018
Dear Friend of GATA and Gold:
Market analysts who chart prices with a mystical belief in the predictive power of “waves” and “candlesticks” might come closer to reality by wondering whether the derivative chart is exerting more powerful magic with the help of entities authorized to create infinite money and deploy it in secret.
The quarterly report from the U.S. Office of the Comptroller of the Currency showing bank trading revenue, published today and called to GATA’s attention by our friend J.H., contains a remarkable graph showing the increase in the notional value of precious metals derivatives held by “U.S. commercial banks and savings associations” quarter by quarter since 2001.
These derivatives, according to the chart, have increased from about $2.5 billion at the end of 2001 to nearly $50 billion in the quarter ended in July this year.
The chart is excerpted from the report at GATA’s internet site here:
http://www.gata.org/files/PMDerivatives-Q2-2018.pdf
Investment houses that have put their clients’ money into the monetary metals and the companies that mine them might do well to inquire too if they ever became more interested in creating value for shareholders than mining them for management fees.