I asked my friend Trader David R where the bottom is, after today’s mauling. He replied:
Technically it looks like we could test $1,555.00. That is my level where I will sell my kids, my house, my wife and buy as much gold as I can! I think we are going to soon see the levels of a lifetime to buy….. as Bill Gross said yesterday, ‘THE FED IS PLAYING A GAME WITH US.’
Nothing has changed except the perception! This is a healthy move to get a much higher price later this year! That is my view for now.
If you are a fan of “technical analysis,” $1,555 is the number to follow. If you believe that TA doesn’t work in a manipulated market, then disregard his comments. Mind you, the fall in gold (and silver) is a COMEX event and has nothing to do with the buying of physical metals from India, China, Russia and savvy international investors. It can turn up at any time and need not continue to drop.
Ted Butler has always maintained that days like today are not a result of leveraged long speculators starting the selling. These are orchestrated events (by JPMorgan and friends) that are designed to entice the longs to liquidate. This is a result of High Frequency Trading, during thinly traded periods. It is illegal under US commodity law, but the CFTC does nothing to prevent it. The commercials are always “buyers” on these takedowns and cover their massive short positions as the foolish longs puke their contracts.
Bill Murphy (LeMetropole Café) had the following to say about today’s antics:
Where does one start on a day like this? Gold and silver are being sent into oblivion by The Gold Cartel … PERIOD! They made their intentions known a week ago after their murderous assault on the precious metals following the Bernanke bunk of last Wednesday. And now we clearly know the stagnant action of the gold/silver shares of late surely was a Gold Cartel signal to their allies of what was coming. BINGO!
This blatant mugging by the bums is adding further insult to injury, as to the way the GATA camp views the financial landscape. Gold was denigrated down to $1638 at one point. Silver was bombed backed to $31.95.
The gold open interest rose 1771 contracts to 442,319, while the silver open interest dropped 92 contracts to 111,730.
Back to the norm … the AM Fix fell to $1662, but the PM Fix was brutalized down to $1644.25.
What else is there to say today except to note The Gold Cartel is taking a bow in front of their sycophant rah rah supporters? It is ALL about them, their power, and their money. They WIN short term. By the end of the year, it will be an entirely different story.
If you haven’t read Gold Investment Explosion from our very own Ranting Andy, it is very well done, and you should read it.
Be sure to read Jim Sinclair’s comments. And be sure and take his excellent advice, “Don’t concern yourself over today’s drop in gold. Pull the rock over your hole or go for a long walk. As always avoid margin like a disease.”
Also, I love what Bill Holter has to say about today’s takedown.
Bob Chapman warns, “This theft is going to be a way of life for all bankers and politicians. They are all going to steal your retirement, so get ready for it.” His comments on Europe and the Greek default are first-rate.
John Williams (Shadowstats.com) wrote, “U.S. Hyperinflationary Great Depression Moves Ever Closer. U.S. Government and the Federal Reserve Effectively Have Destroyed Global Confidence in the U.S. Dollar. Systemic-Solvency and Economic Crises Have Not Abated.” This is reality, not the baloney you get from the mainstream, bought-and-paid-for media.
Today is proof-positive that you must ignore the day-to-day “noise” and hunker down for the payoff, which is coming by 2015. Do not worry about the price – in fact, you must force yourself to take advantage of these illegal bullion bank orchestrations and buy the dips. Let the stupid black-box driven hedge funds take their losses. You should be going long on days like today, just as JPMorgan and friends are.