Dan Norcini at Jim Sinclair's MineSet commenting on Tuesday's Gold market reaction to Monday's CRIMEX attempt to paint Gold as a bad investment:
In one of the more marvelous market displays I have seen in many years, gold was able to shrug off a major technical reversal sign and actually attract enough buying to not only minimize downside movement but actually bounce higher. Considering the extent of speculative long side exposure, and the nature of today’s computer algorithms, its ability to remain firm is astonishing and probably says more about the overall psychology towards the metal than any comments I could make. Investors and traders at the Comex are not panicking out of gold in spite of the formidable technical resistance that surfaced yesterday.
While the record high of yesterday’s session is serving as our new upside technical resistance level and holding price in check for right now, the fact is gold did not fall apart – that alone has to have unnerved those dwelling in their bear dens which is why we saw them begin covering when gold held yesterday’s session lows and refused to break down any further. One day does not a market trend make but for the sheer audacious of the bulls’ performance, you have to tip your hat to their gritty determination to stand firm and refusal to run.
As far as open interest readings go – yesterday’s sell off was accompanied by a rather mediocre drop of a bit under 2,200 contracts bringing the overall number down to 600,895. Considering the extent of the volume of contracts traded yesterday, it is evident that there was a determined selling cap shoved in place even as some of the weaker shorts were forced out on the initial spike into a new record high price. I am a bit surprised that volume yesterday came in where it did; I had expected to see something closer to 200,000. Perhaps that is also why we are seeing gold holding up so well today. Fear by the long side did not apparently materialize during the plunge. As a matter of fact, volume in today’s session is actually more impressive. This is an interesting development which bears further scrutiny over the next couple of trading sessions. If this is the best that the bears can do with all the technicals in their favor, they are in trouble. They will need to take the market down below yesterday’s low on better volume to tip the market convincingly in their favor. I still cannot get over the amazing resiliency being displayed by gold today. This is definitely not the same gold market as back in 2008.
It would appear that Gold traders AND investors are no longer falling for the dirty tricks of the CRIMEX goons. The numbers are not adding up for the goons...they don't have the metals to back up their short positions on the CRIMEX and as each day passes, more traders and investors are coming to that realization. The CRIMEX is a paper fraud, and this is no longer just conjecture, it is a FACT.
Harvey Organ of The Golden Truth comments on Monday's now obvious criminal activity at the CRIMEX:I remarked yesterday that if the open interest on the gold comex remained above 600,000 you could make funeral arrangements for our banking cartel.
The OI for the gold comex closed marginally down by 2199 contracts to 600,895.
No wonder gold catapulted higher at 8:20 this morning (the comex opening time) as the bankers get the OI number last night. We must wait until 1:30.
What must alarm them even more is the OI on the silver comex. It closed HIGHER yesterday despite the massive drop in silver price. The silver OI closed yesterday at 141,062 rising by 1852 contracts.
In other words, the huge downdraft of gold and silver pricing was only paper induced. This has increased the risk to our bankers.
Expect another raid tomorrow and Thursday as the bankers have to get this monkey off their backs.
Gold rose overnight to 1246, the Asians and Europeans taking advantage of the CRIMEX's misguided sales prices of the Precious Metals. But wonder of wonders, as the 8:20 CRIMEX opening bell rang this morning, the prices of Gold and Silver begin to fall quickly as the CRIMEX crooks work their criminal trade in Precious Metals they create out of thin air.
Between 8:20AM and 9:20AM, in just the first hour of CRIMEX trading, the price of Gold fell $10 an ounce. This instantly wiped out all overnight gains in Asia and Europe, AND pushed prices below yesterday's close. In just ONE HOUR!
Over the same span of time the price of Silver fell 30 cents.
Two thirds of the world sees the Precious Metals as an opportunity, and the bullion banks in America see them as a bust? I guess if two thirds of the world wanted your precious metals, it would be a great idea to sell them. What a joke. American bullion banks are little more than poster children for the now flat broke American Government. That TRUTH can only be thwarted by the never ending efforts of the American Banking Cartel to diminish the value of the Precious Metals with their CRIMEX scheme of fraud and misdirection.
And let's not forget that today is FOMC interest rate day. The US Federal Reserve will once again come forward with doublespeak about the "growing" US economy, but the need to maintain interest rates near zero. This Precious Metals positive stance by the Fed cannot be allowed to blossom in the public psyche, so the bullion banks must give the illusion through weakness in "price", that the Fed is "doing the right thing", and Precious Metals are a bad investment.
This illusion is now time worn, and few are falling for it any longer. The bullion banks are out of bullets. Successfully shooting down the "price" of Precious Metals is no longer possible because now "demand" for the Precious Metals is no longer determined by price, but by availability. Precious Metals investors smell blood in these markets now. Supply can no longer satisfy demand. In fact, because of the CRIMEX, supply is now negative...and demand is grossly positive. An explosion in the prices of the Precious Metals may be only weeks away now.
As I type this "prices" have fallen further to retest Monday's lows in Gold, and to new lows in Silver. Has this fabricated drop in prices diminished demand for the Precious Metals. Not likely. As a matter of fact, falling prices will only increase demand for the metals. This is being proven out by the Open Interest numbers reported above by Dan Norcicni and Harvey Oragan. If demand were falling with price, Open Interest would be falling with price. So far it has not been. This shows that demand remains firm, and this firming demand poses the biggest threat to the bullion banks survival.
Revel in this absurd activity by the bullion banks at the CRIMEX, they are slitting their own throats by continuing to sell Precious Metals they do not own. Take advantage of their gift, and thank them for their pompous preening. Seriously, if Gold was such a bad investment, why does it NEVER go down in price $10-20 at a time in Asia and London? Only on the CRIMEX does Gold fall victim to these violent and manufactured swings in price. Use them to your advantage.