Gold Daily and Silver Weekly Charts - Tottering Into Year End

"Oh what a tangled web we weave,
When first we practise to deceive!"

Sir Walter Scott, Marmion

When governments intervene in markets, other than currency and interest rate markets, I do not see how they can expect investors to maintain the confidence in their policies and actions.

It is understandable that such actions in commodity markets may be occasionally necessary to help to manage the impact of some exogenous crisis.  This is the right and proper of a government in responding to natural disasters, wars, and other secular events to smooth the impact on the people.

But when interventions become a routine and necessary component of central bank policy, there should be no question that the economy is being maintained in an unstable and untenable equilibrium, and that forces are being allowed to accumulate that will result eventually in a market dislocation and a further crisis, that often will be worse. 

When the temporary becomes permanent, and the discretionary becomes required, then the winds of great change will begin to blow, and what has been hidden, however long, will be revealed.