Combine the following quote below from Ted Butler with the King World News interview with James Turk and you will have a clear picture of how the markets are manipulated and a better understanding why gold was just hit $100 an ounce in a week.
The biggest problem of all is that technical fund activity is often at odds with real world supply and demand fundamentals. What difference does it make if silver’s long-term fundamentals are spectacularly bullish if the technical funds go on a selling binge? If the technical funds sell aggressively and collectively, the price of any market is going lower until that selling is exhausted. This is how these markets work. Knowing that, what’s the long-term investor to do? It seems to me that, at a minimum, the long-term investor should be aware when the technical funds are in position to sell so as not to be blindsided emotionally.
The run up in gold and lesser run up in silver prices this year was entirely due to technical fund buying, as I hope I have reported all along. After such buying is concluded, the odds rise that the technical funds can or will be induced into selling by the commercials. It’s hard to predict in advance when technical fund buying will be concluded and when the funds may be induced to sell, but that is much more likely after large ownership changes, like now.
– Silver analyst Ted Butler, Butler Research, March 26, 2014
Here is the 6-month gold chart that shows you how the commercial trader-induced price decline is engineered…
Ed Steer had the following to say about the above chart and the JPM HFT price rig.
As you can deduce from the above chart, the price bounced off its 50 and 200-day moving averages yesterday, but if/when JPMorgan et al run the sell stops at this price and lower using their HFT boyz, the technical funds will dump their longs en masse—and if the price gets low enough, they may be even enticed into going short. The very act of dumping longs and buying short positions is what causes the price to fall, once JPMorgan et al get the ball rolling down the hill—and with the current chart set-up, which I’m guessing was painted to perfection, the decline, once these moving averages are broken, will be ugly.
–Casey Research, March 27, 2014
Here is the 6 month silver chart. Not a pretty sight.
Ed Steer said:
With two trading days left to roll out of the April contract—and three trading days left in the month of March and the first quarter of 2014—nothing will surprise me as the rest of this month winds down.
––Casey Research, March 27, 2014
Here are the latest data from John Williams at Shadowstats…
– Fourth-Quarter GDP Revision Was Little More than Statistical Noise; First-Quarter GDP Contraction Remains Likely
– Real Durable Goods Orders on Track for 9.0% Annualized First-Quarter Contraction
– New Deflated and Corrected Durable Goods Series Confirm No Recovery
– New Homes Sales Down Year-to-Year for Second Month, Pattern Not Seen Since Series Trough in 2011
–Shadowstats.com, March 27, 2014