Wednesday, November 20, 2013

Signs of Desperation from the Gold Cartel

Someone dumped 1,500 Dec gold contracts on the COMEX this morning that smacked-down the price and caused a 20 second market halt.  This is the third time in about 2 months that large sell orders have triggered stop logic on the COMEX.
http://www.zerohedge.com/news/2013-11-20/furious-gold-slamdown-leads-third-consecutive-20-second-gold-market-halt

Reading from the charts that Zerohedge provided gold prices fell about $12 per ounce and have since recovered about have of the drop.

Hopefully, these are signs of desperation on behalf of a gold cartel that is clearly, actively suppressing market prices:
- the front month (December) contracts were attacked.  
- increasing frequency of the attacks
- gold price recovered quickly after the smackdown

1,500 gold contracts * 100 ounce/contract * $1,270/ounce = $190.5M.  Suppressing gold prices discourages an alternative to debt and equity markets.  $190M is a small price to pay/invest for a cartel that has been spending $85B per month to maintain confidence in those markets.  

I am getting tired of lying against the ropes and taking these punches.  Let's hope they have almost punched themselves out so that we can 'rope these dopes'.
http://en.wikipedia.org/wiki/Rope-a-dope

"You have no power.  You can't hit.  You swing like a sissy."  Muhammad Ali said to George Foreman before their famous rumble in the jungle boxing match.

3 comments:

  1. A comment on ZH quoted Sprott as predicting $2500 gold by 2Q 2014.

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    Replies
    1. I have a lot of respect for Eric Sprott and have followed him and his funds for many years. If I remember correctly, this summer he forecast gold to be back to all time highs (>$1,900) by the end of 2013. Additionally, his earlier forecasts did not call for gold prices to drop. Sprott's forecast accuracy or lack thereof show how difficult and illogical the market has been. He even enjoys market information gained as a major buyer of bullion and miners for his funds. Timing the rigged precious metals markets is futile. Keep stacking physical.

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  2. Suzlon Energy Ltd is currently trading at Rs 14.85, up by Rs 0.7 or 4.95% from its previous closing of Rs 14.15 on the BSE. The scrip opened at Rs 14.2 and has touched a high and low of Rs 14.85 and Rs 14.15 respectively.
    Stock Tips

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