Remember this table? It shows the Options expiration dates for gold and silver, and I wrote about it last month on June 24th. On that day, gold and silver had once again been taken down just prior to their options expiration date. And I told you that if you were looking to make purchases yet this year, the few days leading up to these expiration dates would most likely prove to be a good opportunity.
Gold futures expired today, June 27th and predictably, as the precious metals expirations grew closer, the paper shorts increased their short positions in order to manipulate the gold and silver price downward.
This redundant process allows the bullion banks to profit, as the contracts they sold expire worthless. More dastardly, it also allows those bullion banks an orderly retreat from their huge short positions, as the investing public is convinced gold has lost its role as a safe haven in these troubling times.
This happens time and time again and it is so important to realize that the manufactured, sharp sell-offs just prior to expiration dates, are almost always short lived. These dips are now being met with worldwide demand for physical product, as investors and now central banks quietly diversify out of fiat paper.
Hold on to your precious metals and stay the course. See the dips for exactly the buying opportunities that they are and get longer gold.