On a quiet, pre-holiday Friday morning – with nearly the entire world on holiday, and ALL markets down except, of course, the “DOW JONES PROPAGANDA AVERAGE” – What better time to tie together what I have written this week? In other words, a primer on “Gold Cartel Strategy 101.” On Wednesday, I wrote of how the metals had a rare options expiration day (Tuesday) in which the prices were in the money for many great contracts; and also, how very few contracts are ever redeemed for metal on the nearly PAPER-only CRIMEX – er, COMEX. Yesterday, I wrote of how the real Cartel target is not Expiration Day, but “First Delivery Day” – i.e., today – as said option holders have until the close of today’s COMEX trading to exercise their right to PHYSICAL delivery. And thus – per today’s topic, the Cartel is far more worried about being swamped with delivery requests – for the little actual metal that still exists – than losing a few PAPER dollars (that the Fed can print up for them at will) in the options markets.
And hence, despite imminent WAR, plunging global currencies, rising interest rates, cratering economic data, next week’s potentially historic, dollar-killing G-20 meeting, and oh yeah, a likely long-term, debilitating South African gold mining strike, the Cartel went on a MASSIVE, week-long, PAPER PM “attack-fest” – utilizing every possible tactic – from “THE 2:15 AM” (seen EVERY DAY this week), to yesterday’s 8:20 AM EST (COMEX open), 10:00 AM EST (PM Fix), and even 2:00 PM EST “CRYBABY ATTACKs” to make sure the $1,400 and $1,420 gold calls are out-of-the-money by the time the delivery decisions are made this afternoon (as traders typically wait until the last second to make such decisions) – as well as the $24.00 and $24.50 silver calls.
In fact, the desperation to avoid losing the inevitable, MASSIVE run on the remaining COMEX PHYSICAL inventories has become so desperate, the Cartel naked shorted the recently awakened mining stocks with a vengeance – taking the HUI down a whopping 12 points Tuesday (with gold and silver up!) and eight points Wednesday (with gold and silver flat!) to demoralize potential “momentum buyers” into “going elsewhere.” And notice how yesterday, when they finally succeeded in ATTACKING PAPER PMs, the HUI was up as they quietly covered shorts. FYI, for those that still own mining shares, keep in mind what I have always said, as eloquently put yesterday by James Turk…
But remember, owning bullion or the mining shares are two entirely different things. Physical gold and silver are safe havens. They are money outside of the banking system, and do not have counterparty risk. In contrast, the mining shares are not money — they are an investment.
–King World News, August 28, 2013
In the big picture, said lack of PHYSICAL gold and silver to continue the dying game of PM suppression may well be the catalyst that destroys the entire, ill-fated global fiat currency regime; and even if it’s not, it WILL rear its ugly head and swamp the game of “PAPER musical chairs” that has allowed evil bankers and politicians to ruin the world with debt and inflation. Per Keith Barron’s quote below, it is these issues behind the inexorable growth of PHYSICAL PM demand – which will only grow more intense with each “currency unit”, PRINTED; and not “one-off” events like Syria, although they certainly don’t help the Cartel’s case…
The mainstream media is trying to paint this rise in the gold price as related to the conflict in the Middle-East. That’s bullsh*t. The Middle-East hasn’t significantly moved the gold market in decades. But this is the job of the mainstream media — to lie and deceive the public about why the price of gold is really rising.
–King World News, August 29, 2013
We are now in the FINAL stages of history’s most heinous, citizen-killing financial experiment of all time; and if you don’t PROTECT your assets while you still can, you may wake up (shortly) without any. Enjoy your holiday weekend.