Thoughts From GATA: Is Gold Manipulation At Its End Game
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Some Sunday afternoon thoughts.
First off, Avery Goodman is a must read at The Kiki Table, if you have not already done so. He is a very bright younger man who comes across as if he grew up in GATA world. His explanation of what is going on right now is top notch. Most importantly, it provides additional concrete insight into a reasoned potential of a Gold Cartel End Game scenario discussed here this week.
Some points to keep in mind:
*Who is this guy?
Avery B. Goodman is a licensed attorney and the author of the action-packed Wall Street thriller "The Synod".
He holds a B.A. from Emory University, where he concentrated on history and economics. He also holds a Juris Doctorate degree from the University of California at Los Angeles Law School and is a member of the Bar, licensed to practice law in several jurisdictions. Mr. Goodman serves on the roster of neutral arbitrators of the National Futures Association (NFA) and the Financial Industry Regulatory Authority (FINRA)
*There has never been any direct communication between GATA and this young/brilliant Mr. Goodman (most everyone is young compared to me.) And yet he comes across with the GATA "rap" as if he has followed what we have had to say since our inception.
*Been doing this close to 19 years now and reporting on the activities of The Gold Cartel almost all that time. The intensity of their suppression activity has never been more intense on a daily basis over the past few weeks than at ANY time over all those years. A caveman could see it (course, most of the gold/silver pundits are of such mental midget status, they don’t qualify for caveman status).
*Their operations have created the most bearish technical situation imaginable, a bear’s dream scenario.
*A general comment from me this past week that this is SO bad that maybe it is good in the sense that it is FINALLY setting up an End Game scenario in which the bad guys have made a calculated (possibly forced) decision to retreat in a major league way.
*The fact that two flash crashes were put into play this past week is beyond extraordinary, especially since they were enacted following less explicit, but so blatant, Gold Cartel price suppression maneuvers.
*This strongly suggests a sign of desperation in terms of getting the deed done on the downside quickly. Many of us have used that word "desperation" in the past, so that observation may sound hollow. At the moment there are a number in our camp who are desperate, not them on the surface. And yet, if the jig is about up, FINALLY, then this is exactly the sort of histrionic End Game tactics that one might expect from the rich and powerful … meaning if they are dealing with potential time constraints, then they need to extricate themselves from their enormous short positions ASAP. This is just what these hideous back to back flash crashes insinuate.
*The situation in the silver open interest, as discussed here ad nauseam, is beyond mindboggling, as it remains far above its historic highs prior to last year … despite the price collapse. The norm would be for it to decrease sharply with the silver prices falling apart. Not happening and this just does not occur EVER in traditional free markets, especially at cost of production prices. Could it be what the JPM forces have engineered has the specs now selling like crazy while their forces cover? The COT report (whatever that is worth) suggests this could be the case. If so, THIS has never happened before, meaning a shift of bullion bank positions (commercials) at such high OI levels.
*That would be extraordinary, which, if so, could set up an extraordinary bullish price explosion with so many in the investment world in the bearish camp.
*What has bothered Billy The Kid here for some time is that there are a number in our camp out there, like myself, which have been looking for the price of silver to make a historic move the upside. Meanwhile, the silver price action is about the worst these past years as any market I have ever observed in 45 years.
It hasn’t made any sense to those of us who are so bullish. What makes total sense is this is the last JPM hurrah on the downside to press their case to cover their short positions before the price of silver does what we have been waiting for, for SO long now. It sure appears that JPM has been waiting for the right time to execute a FINAL exit plan. If one were to have drawn it up for them way back when, THIS would be it.
*In a big picture sense The Silver Signal has been in play BIG TIME. The price of silver has collapsed and it has taken the price of gold down with it. As brought to our attention by James Mc some time ago, silver is the cabal’s kryptonite. THEY know that when THAT cat escapes from its bag, the gold price suppression scheme is history for the short term, and maybe forever.
*This is all just food for Café thought, so much more of which could be brought your way, but you have heard it long enough … EXCEPT to finish up with…
These past years have been a nightmare for our camp, thanks to the bums. Other assets have soared under a low interest environment. It is ludicrous for the prices of gold and silver to have collapsed the way they have, but So Be It.
That said, it is SO clear that the gold/silver prices have been FORCED to incredibly low artificial prices, especially relative to other assets and very low interest rates. It is all due to the constant operations of the heinous Gold Cartel, which the clueless in the mainstream pundit world refuse to acknowledge, no matter how obvious their operations get, as per this past week.
THAT is never going to change UNTIL an explosion in the gold/silver prices, accompanied by financial market chaos takes hold … which is only a matter of time. When it does, we will have an Enron/Madoff situation times 100.
At some point in the not too distant future, the gold/silver prices, especially silver, are going to explode out of nowhere. Those of you who hang in there, or are still buying these dips, are going to be the happiest of campers.
And this is KEY: if we are getting to that game changing Tipping Point, there will be few sellers when the prices of gold and silver begin to surge AFTER a modest rally. The specs will initially sell, but when, and if, the prices keep going, they will begin to cover, as always. IF, we really are at that long awaited for End Game, who is going to sell outside of some reasonable hedgers?
Bottom line: the sellers will be few and far between and the prices of gold and silver will go inexplicably bonkers, except to our crowd.
Hopefully, SO BE IT!