Gold’s Fall Has Been Manipulated For Another Quick Fix

March 6, 2012 | By | Reply More

According to a strong rumour that we are inclined to believe, an “instant” sell order for nearly thirty metric tonnes of gold was traded on New York’s Comex exchange last Wednesday.

Around the same time “Helicopter” Ben Bernanke in his latest statement on the US economy, announced, in essence, that there were no (imminent) plans to introduce another round of quantitative easing.

The result was that we have been led to believe that this latest statement resulted in the $90 an oz gold swoon. Gold’s fall has been manipulated for another quick fix. No mention has yet been made of the remarkable coincidence that 30 tonnes of gold hitting the market might have made a significant contribution to the fall.

It is no secret that the political junta in Washington and in the other so called developed western economies along with their acolytes hate the yellow metal with all the vigour that fear encourages. The reliance on the printing press to produce enough currencies to keep the masses quiescent and the politicos in power says it all.

No matter what the longer term consequences are, the aim is to produce a series of quick fixes to keep  recession at bay for as long as possible. It is hard to think of any scenario that will avert the whole house of cards collapsing in the chaos of runaway inflation.

That would leave gold, along with silver, in the situation of being the unchallengeable hardest of assets, reverting back to their historical positions as the truest stores of value until undermined by the US under President Nixon in 1971.

Large Gold Sell Order For Immediate Execution Was Not Professional

This brings us to the sale of thirty tonnes of gold on Wednesday. With the exception of Gordon Brown, the British Chancellor of the Exchequer, who famously announced to all the world that he was selling 200 tonnes of the country’s gold reserves and then could not understand why the price went down and down until the lot was sold, we know of no other occasion when a large sell order of any stock or commodity was put on the market in one lump with such a lack of subtleness and basic professionalism.

Any ordinary street trader would know better and just feed the market quietly in smaller lots over a period of time. The conclusion we draw is that it was a deliberate double hit to hurt the gold price by  shaking out the weak hands and undermining the confidence of the major players.

Manipulation Working As Gold continues To Fall

Did it work? Well yes and no. A drop of around $100 is no big deal bearing in mind the extended bull run that gold has enjoyed over the last five years. Add to that the strength of the fundamentals supporting a continuance of the price rise for the foreseeable future then it has little likelihood of being anything than a short term blip.

However the downside is that we do not know when Ben and his boys will come up with yet another scheme to hurt gold. Do it often enough and confidence will take a battering that will take time to regain.

Is another big tonnage of gold from a source under control of the Fed about to be dumped on the market? Again doing it often enough will sustain the hurt.

A year or two ago there was another rumour going the rounds that Fort Knox simply did not have much in the way of US owned gold left in its vaults. No official audit has been published for years to tell us what gold reserves the US has.

If there was any truth or even part truth then it becomes another strong reason for our political masters to suppress the price of gold by any means they can, and however obvious.

A further rumour that we have just heard puts the amount of gold involved in the “instant” sell order at nearer ninety metric tonnes and apparently this is not the first time that such an unusual sell gold order has been placed for immediate execution.

One way or the other it has done trick as gold has fallen through support at $1705 and now $1695.

Coincidence Piled On Coincidence

If you are unsure whether to believe the rumours that our political masters and the Fed are manipulating the gold and silver markets perhaps this further coincidence may help you decide.

The  gold market earlier in the day before Bernanke’s address was showing strong signs of renewing its upward momentum into $1800 and more, last reached in early November.

Three coincidences within a very few hours of each other on the same day is a little to hard to swallow don’t you think!

 

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