More Manipulation on Gold and Silver
Here's a must read. CYA:SE
It was Agora Financial editor Byron King addressing its last-ever
Vancouver mega-conference yesterday who summed up the biggest mystery
of the event this week: ‘The gold price fall, well I just don’t get it!’
Yet there is always some method behind any madness. The gold price did not fall by itself. About a thousand tonnes of the stuff has been sold, mainly in the US and mainly on the Comex futures exchange. The first huge sale of 500 tonnes blew a hole in the gold price back in April.
Pure manipulation
It’s been a deliberate manipulation by the bullion banks. True they spotted a weakening bullion market. But the bear raid was a calculated collusion to make it much worse than normal market forces would have allowed.
However, that does also have an impact on the likely recoil in prices. Those who sold gold cheaply will not be able to buy it back at the same price. The Chinese who snapped up what physical gold was really sold are hoarders, not traders.
A shorter supply of gold will now send the price back up. Another Vancouver veteran Frank Holmes has just published a chart of showing how the total money supply and gold price have correlated almost exactly until the past few months. It points to a gold price of $1,728.
Talk of reducing QE has only been that. The $85 billion in new money is minted every month. Janet Yellen would be as much a money printer as Fed boss Ben Bernanke. The Japanese have only just fired up their printing presses. The new Governor of the Bank of England is playing with market sentiment and will do the same.
Nothing has really changed in the gold market except that the traders have been forced out. With a tighter gold market left behind and the very real prospect of the Comex losing its role as the price setting mechanism around the corner, precious metal prices have an excellent outlook.
Source: http://www.arabianmoney.net/gold-silver/2013/07/26/golds-price-fall-was-the-ultimate-in-manipulation-and-it-wont-stay-down/
Gold’s price fall was the ultimate in manipulation and it won’t stay down
Posted on 26 July 2013 with no comments from readers Yet there is always some method behind any madness. The gold price did not fall by itself. About a thousand tonnes of the stuff has been sold, mainly in the US and mainly on the Comex futures exchange. The first huge sale of 500 tonnes blew a hole in the gold price back in April.
Pure manipulation
It’s been a deliberate manipulation by the bullion banks. True they spotted a weakening bullion market. But the bear raid was a calculated collusion to make it much worse than normal market forces would have allowed.
However, that does also have an impact on the likely recoil in prices. Those who sold gold cheaply will not be able to buy it back at the same price. The Chinese who snapped up what physical gold was really sold are hoarders, not traders.
A shorter supply of gold will now send the price back up. Another Vancouver veteran Frank Holmes has just published a chart of showing how the total money supply and gold price have correlated almost exactly until the past few months. It points to a gold price of $1,728.
Talk of reducing QE has only been that. The $85 billion in new money is minted every month. Janet Yellen would be as much a money printer as Fed boss Ben Bernanke. The Japanese have only just fired up their printing presses. The new Governor of the Bank of England is playing with market sentiment and will do the same.
Nothing has really changed in the gold market except that the traders have been forced out. With a tighter gold market left behind and the very real prospect of the Comex losing its role as the price setting mechanism around the corner, precious metal prices have an excellent outlook.
Source: http://www.arabianmoney.net/gold-silver/2013/07/26/golds-price-fall-was-the-ultimate-in-manipulation-and-it-wont-stay-down/
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