Thursday, November 10, 2011

Gold Price Manipulation Blatant And Disgusting...Desperate

For me to say that I am DISGUSTED with the BLATANT manipulation of the Precious Metals markets would be a gross understatement. 

Explain the following market action today...I can't.  GATA's Bill Murphy can't either.

From his Lemetropole Cafe post this afternoon at The James Joyce Table:

Behavioral Finance Report
*My commentary will be mostly about Behavioral Finance. From a Planet GATA perspective, what else is there? What would I find the markets doing this morning when I woke up after yesterday’s commotion? Huh I thought when I turned on the tube. The DOW was sharply higher and gold was crushed. Was the dollar soaring? No, it was lower. Were commodity prices getting battered? No, oil was higher. Was there some miraculous news out of Europe signifying real progress in their growing fiscal problems? None at all. Bond yields in Italy came down below the so-called critical 7% level thanks to some mysterious buying. However, bond yields in Germany and France have risen to euro level highs.

Seriously, why was "the price" of Gold down today?

Oil price rises as US supplies shrink
BusinessWeek -
Oil prices climbed above $97 per barrel Wednesday on signs that the US is consuming more fuel. The government said Wednesday that diesel ...

Snap Reactions To Italy's €5 Billion Bill Auction, Which Reeks Of Illegal ECB Intervention
From ZeroHedge
Earlier today Italy sold €3 billion in 1 year Bills at an average yield of 6.087%, the highest since September 1997, and almost 3% higher compared to a month ago, when it prices at 3.570%. Yet there was a stunning twist: the 1 Year was trading at a whopping 7.75% in the gray market minutes before the auction, or almost 200 bps wide of the auction result, something which never happens under normal conditions unless the invisible hand of the central bank has anything to say about it. Now we know already that the ECB stepped in to aggressively mop up Italian bonds in the secondary market immediately after the auction to bring 10 year yields below 7%, however briefly: the bond has since widened above that level once again. Yet what is shocking is the primary market strength for the 1 year: since the ECB is prohibited by law from intervening in the primary, auction market, we wonder just what illegal backdoor funding scheme the ECB has concocted with friendly banks in order to have the auction price where it did, and how much money was transferred by back door channels to keep Europe from imploding one more day. Considering that the EURUSD was trading below 1.35 just prior to the auction at around 3 am, and has since regained losses, just as we expected yesterday, please remind us to add this latest illegal central bank intervention feature to the list of things to uncover once Europe blows up and the ECB's secret trading records are laid out for all to see. In the meantime, here is the Wall Street snap reaction to the Bill auction.

Does it really matter that the price of Gold was down today, despite every reason for it to be up?  HELL NO!  It's just noise...  Gold IS going higher.  Silver IS going higher.  Oil IS going higher.  You name it, it IS going to go higher in price.  There have been many head scratching days like this in our 10-year long Gold Bull hunch is there will NOT be very many more.

From UBS:

"The amount of gold shipped from Hong Kong to the mainland jumped to 56.9 tonnes during the month, from an average monthly flow of 18 tonnes to August. The September figure is nearly 500% higher than in the same month last year and lifts total shipments for the first three quarters of 2011 by 128% y/y."

"In the three months July, August and September, China imported around 140 tonnes of gold compared to 120 tonnes in the whole of 2010."

Global demand for physical Gold makes the "paper price"of Gold look silly.

And if you think the "paper price"of Silver is even sillier, consider this demand stat:

From Mark W. Kellstrom, CFA
Strategic Energy Research and Capital, LLC:

Silver Eagle Bullion Sales Hit New Record In 2011. The correction in silver prices has not shaken investor confidence. In fact, bullion investors have stepped up their purchases this year. With just under two months still remaining in 2011, sales of the American Silver Eagle have already surpassed the record level of 2010 with sales of 36,375,500 ounces. If sales of the Silver Eagle for November and December match the levels of 2010, total sales for 2011 should total over 42 million ounces or more than 20% above the record breaking sales level of 2010. Investors also appear to be wising up to the manipulation in the silver market as weak hands strengthen. This is evidenced by the fact that some of the strongest sales months during 2011 were during the sharp sell offs. Rather than panic, sell silver positions or move into cash, investors stepped up their purchases of silver eagles coins to take advantage of the depressed prices.

Considering the physical demand for Gold AND Silver, and couple it with the FACT that the banks have no choice but to PRINT PRINT PRINT money to pay for their debts, prices can only rise from here no matter what shenanigans the CRIMEX banking cartel comes up with.

Secret gold price suppression won't last much longer
Geopolitical analyst James G. Rickards, who spoke at GATA's Gold Rush 2011 conference in London in August, today tells King World News that a second but secret London Gold Pool is being operated by Western central banks to suppress gold's price and that he doesn't expect it to surive more than two more years. An excerpt from the interview has been posted at the King World News blog here:

The CRIMEX Banking Cartel is desperate to halt the recent breakout in the price of Gold.  Just look at The Big Picture posted below.  It is worth a thousand words of support for the Gold market.

Gold could not be better poised for an assault on $2000.  F*#$ the CRIMEX!

ECB Preparing Italy Bailout, Massive Inflation ComingWednesday, November 9, 2011
read article...

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