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What Is Pushing Down the Gold Price?

Monetary Metals's picture




 

It has been an increasingly brutal ride for gold and silver, beginning around late March and accelerating through April. The gold price was over $1600 and on Monday April 15, it fell below $1350, a loss of $250. Silver did even worse, falling from $29 to $22. We called for the gold:silver ratio to rise, and since the start of February, it has risen from around 52.5 to over 59 as I write this (with a few periods over 60).

Gold and Silver Prices

Everyone wants to know why. Why did this happen? Could the prices fall further? If so, how much? In this two-part article, I address these questions and put them into perspective. In the first part, I discuss the conventional theory and in the second part the Monetary Metals theory.

In this article, I refer to the “gold bug” frequently. By “gold bug” I mean the dollar-focused speculators and traders, not the people who buy gold and silver to accumulate for the long term. The latter understand, implicitly or explicitly, that gold is money and that it is good to hold money as the world moves closer towards global bankruptcy and default.

Let’s start with a question. If you knew that a casino was cheating, if you saw that there was a magnet under the roulette table, would you gamble there? Would you risk your money, hoping that on the next spin, the magnet would somehow malfunction?

It would be irrational. You would be better off going to the next casino where they obey state law and run an honest game. It is the same with the markets. If you believe that the gold and silver prices are controlled then why would you risk your capital attempting to trade them? Technical and fundamental analysis would be at best useless and at worst misleading, because there are cheaters in the game. No analysis could predict when the cheater will push the button that raises the magnet under green “00”, and take your money.

We are not aware of any gold or silver analyst that called for the crash of last Friday through Monday. There are some analysts who are generally bearish, and we ourselves have predicting the rising gold:silver price ratio, and we emphasized that we were not bullish on the silver price in dollars all the way down from $35. But no one said that the gold price would drop more than 10% in two trading days.

In this paper, I shine some light onto the conventional manipulation theory and also the very idea of holding gold waiting for a higher gold price. I present my own theory of what may be happening in the markets right now, and a different view of the use and value of gold. If you want to understand the gold market dynamics, then you must understand the gold basis and the broader credit environment.

If you are firmly committed to the belief that the gold price is suppressed, then you may want to stop reading right here or else prepare to be offended. Consider yourself warned.

What follows is a sometimes-humorous and often-irreverent and hard-hitting discussion.  I write this not out of a desire to insult anyone, but to help people see their way out of a no-win zero-sum game. I hope to offer a different perspective and expand your thinking about gold and silver. My other goal is to address those people who are holding gold and who are nervous about the near-term price volatility. I hope that in this article, you come away with a stronger understanding that you are in the right place, that selling low is never a good strategy, and the dollar is not a store of value.

The Conventional “Gold Bug” Theory

It is commonly accepted today that as the quantity of money rises, then prices must rise especially including the prices of gold and silver (throughout this article, I will use the word gold to refer to both metals unless I call one metal out explicitly). Prices in the real world do not move that way, so a convenient explanation has become very popular.

Gold Bug

In this theory, there are nefarious forces, composed of various central banks plus assorted bullion banks (often called “vampires” and/or “squids”). In some versions, this dark cabal does not care about taking losses to suppress the price of gold. Other accounts accuse them of making illicit gains by causing poor old gold investors to buy high and sell low.

They are supposed to surreptitiously dump physical metal (which is finite in its supply) onto the market, in order to push down the price.  Alternatively, they might be dumping unlimited quantities of futures to accomplish their evil end.

The reason they would want to suppress the gold price is vaguely given as trying to prop up “faith” in the paper dollar, or otherwise somehow “protect” their paper money.

In any case, when the price is rising, the gold bug treats it as right and natural. When the price falls, it is due to manipulation. Why would anyone be satisfied with this simplistic view? It won’t help in trading, though it does offer comfort after each wounding.

I have written many times to debunk these conspiracy theories, so I do not want to dwell too much on them here, except to make two observations. First, the central banks don’t have any silver. If they were dumping real metal to suppress the price, it would have to be gold only. This leads to a nagging question. Historically, the gold:silver ratio was around 16 (i.e. 1 ounce of gold could buy 16 ounces of silver). If gold is artificially cheapened—but not silver—wouldn’t one expect to see the ratio fall below 16:1? Today the ratio is near 60:1.

If both metals are suppressed, then it has to be done using futures. There is an equally nagging problem with this idea. If they sell futures (but not real metal, which is typically claimed to be scarce and getting scarcer), then they tear open a large spread between the price of a future and the price of real metal. For example, if both are trading around $1600, and they sell hundreds of tons worth of gold futures—enough to drive the price down $250—then there would be a $250 spread between real metal which would remain up at $1600, and futures which would be driven down to $1350.

The term for when the futures contract is cheaper than spot metal is called “backwardation”. While there is intermittent gold backwardation, the magnitude is in the cents or perhaps a dollar or so, not hundreds of dollars. Indeed, on Monday morning, April 15, the slight backwardation that had existed in the June gold contract disappeared. The Gold Basis Report (free registration required) provides weekly coverage of the gold and silver basis and other related data.

My personal opinion is that the Fed cares far less about the gold price than we do. Gold is not in the basket of goods whose prices comprise the Consumer Price Index. Dollars are not redeemable in gold, the Fed and the banks are not struggling under an obligation to deliver gold, and there is no run on the gold of the banks.

Monetary Metals Theory

Monetary Metals was founded on a single idea: gold is money, and the dollar is credit-of declining quality. One cannot profit by buying gold and waiting for the price to rise. Sure, one has more dollars, but each of them is worth less. How much less? The decline of the value of each dollar is in exact proportion to the gain in the number of them. If the amount of gold that you own has not changed, then it stands to reason that you have not gained real wealth (and in the US, you lose wealth due to the tax on capital gains).

Let me illustrate this point with an example. Imagine you have 1,000 silver coins. The silver price is about $24, so your hoard is worth about $24,000 today. What if the silver price rose 0.1% to $24.024, and you spent one coin? Your 999 remaining coins are worth … $24,000. What if the silver price rose again to $24.048, and you spent another coin? Your remaining 998 coins are still worth $24,000. You continue this process every day (while it lasts).

Is this really like living on the interest on a bond? Or, are you consuming your capital? You are certainly reducing the amount of silver you hold, even if the dollar value of it remains constant. This is the picture of capital destruction that everyone should have firmly in mind whenever a central banker or talking head uses the term “wealth effect”. Rising prices can make one feel wealthier, but it is not real wealth.

We must operate in the real world. Few people hold our unconventional view. Most Westerners think of a rising gold price as a gain, and a falling price is a loss. (attitudes are quite different in India and parts of Asia). Western gold bugs have to sell gold. They sell when the price rises, to realize their gains. They sell when the price falls, to stop their losses.

Though many call themselves investors, gold bugs are speculators. They are described aptly by John Maynard Keynes (who did not get much else right) in 1935:

“Or, to change the metaphor slightly, professional investment may be likened to those newspaper competitions in which the competitors have to pick out the six prettiest faces from a hundred photographs, the prize being awarded to the competitor whose choice most nearly corresponds to the average preferences of the competitors as a whole; so that each competitor has to pick, not those faces which he himself finds prettiest, but those which he thinks likeliest to catch the fancy of the other competitors, all of whom are looking at the problem from the same point of view. It is not a case of choosing those which, to the best of one’s judgment, are really the prettiest, nor even those which average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practise the fourth, fifth and higher degrees.”1

They play a zero-sum game, hoping to front-run the others, to buy first, and then let everyone else’s buying drive up the price so they can sell. Or, often, they are the greater fools who buy from other speculators who are selling to take profits. Then, when the price drops, they sell to avoid further losses.

Although they tell the story of the falling dollar, this is just lip service. Gold bugs measure their gains in dollars, and they sell gold for dollars as their modus operandi. When they are buying en masse, the price of gold can rise sharply. When they are selling en masse, we can see precipitous sell-offs, as over the last week.

What could have caused these people to sell en masse right now?

 

In Part II, we address the root causes (free registration required).

  • 1. The General Theory of Employment, Interest, and Money by John Maynard Keynes, p. 140 (Google Books edition)
 

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Thu, 04/18/2013 - 19:08 | 3468790 exartizo
exartizo's picture

Gee that's a really really loooong and boring article.

Frankly, I just skipped to the end for your synopsis.

The last two paragraphs were....ummmm.

Cryptic?

You must think Socrates was a great guy.

You really need someone to edit your writing.

Thu, 04/18/2013 - 18:40 | 3468678 MrBoompi
MrBoompi's picture

When you have money to invest, and you are not given a guaranteed rate of return, you are speculating. I don't care if you buy physical things or paper things. The Powers That Be are allowing big players like JPM to naked short the paper market. Why? Who the fuck knows for sure, but Dr Paul Craig Roberts knows more than you do about it. Good and silver are tiny markets compared to the USD and its value in world trade and the financial elite preserve and maintain their wealth, which will be preserved at all costs, including violence if necessary.

Thu, 04/18/2013 - 16:32 | 3467936 Mi Naem
Mi Naem's picture

"In Part II, we address the root causes (free registration required)."

Tylers, it certainly would be a service to your readers and an enhancement to your credibility if you would begin come-on advertising posts like this one with an explanatory disclaimer. 

To get to the end and realize that I'm just being reeled in to subscription at yet another blog is annoying and cheap. 

Thu, 04/18/2013 - 16:40 | 3467971 EL INDIO
EL INDIO's picture

Especially when the guy believes he is smart and the rest are dumb asses.

For examples, Mr smart guy, you can get richer buy just buying Gold and holding it if you get it when it is severely undervalued.

You didn’t think about that, did you ?

Thu, 04/18/2013 - 16:16 | 3467859 Quantum Nucleonics
Quantum Nucleonics's picture

The reasons for the decline in metals prices should be obvious.  The macro data flow is terrible.  QE is ineffective.  Collapsing money velocity means as hard as it tries the Fed can't ignite hyperinflation.  High unemployment means that rather than cost inflation we are getting wage deflation.  Deflation is death for metals.  We are in a deflationary death spiral.  See you at the event horizon.

Thu, 04/18/2013 - 15:53 | 3467757 Cycling Fish
Cycling Fish's picture

What is happening is that the hedge funds and big banks are rotating out of paper gold and into physical. At the moment you cannot get physical gold for love or money.

There are queues outside bullion dealers in Australia. 99% are buyers and only 1% are sellers.

http://www.abc.net.au/news/2013-04-18/bargain-hunters-catch-gold-fever/4...

And in Britain

http://www.telegraph.co.uk/finance/financialcrisis/3123775/Financial-Cri...

If you are an owner of a gold ETF why would you care what the price of gold is today if you are simaltaneaously selling paper gold and buying physical? All you care is that some muppet will buy the paper and another muppet will sell you the physical.

Furthermore,the muppet market for physical gold is bigger than all the banks and hedge funds combined.

 

 

 

Thu, 04/18/2013 - 14:44 | 3467415 grulag
grulag's picture

Not a demand issue at all, it's a supply issue. The banksters shrank the supply, constricted it basically. Prices drop, and still a shortage?

The price is important, and they do control it, but the main reason for this assault on the price is to confiscate the physical.

the gold community (bugs, specualtors) traded in thier physical to settle at the comex and then began shorting it.

Thu, 04/18/2013 - 16:08 | 3467831 Solon the Destroyer
Solon the Destroyer's picture

Exactly.

I don't think people realize that "the conspiracy" is not to keep the price permanently suppressed.  That is impossible in an irreedmable currency environment as the last 15 years have proven.

"The Conspiracy" is to tease gold out of its private hoards and accumulate concentrated long positions.

If they are successful, it will mean slavery for us all... unless we stop it and that will require a very violent, and probably lengthy, revolution.

Thu, 04/18/2013 - 13:55 | 3467250 nikku
nikku's picture

No, the Fed would NEVER even consider manipulating gold prices...

"That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake."

- Paul Volcker, "Nikkei Weekly" 2004
Thu, 04/18/2013 - 13:46 | 3467207 DosZap
DosZap's picture

My Distributor just informed me ALL SILVER orders are at least 3 weeks out.And this is a HUGE company.

Folks are HOOOVERING it up at this price.

Premiums for IRA Approved Buffalo rounds , is up .30 to 1.25.

Thu, 04/18/2013 - 13:14 | 3467093 Der Wille Zur Macht
Der Wille Zur Macht's picture

I am not a rich man. However, I did take this opportunity to purchase three 2013 Silver Eagle's and a Taku online.

What is the reasoning for the different prices between the coins if both are a troy oz. of .999 silver?

Thu, 04/18/2013 - 12:45 | 3466957 bardot63
bardot63's picture

Has Dr. Weiner never heard of GATA?  Never read any of GATA's research which 50 feet high and is all in the public domain?  Never heard Bart Chilton say there is manipulation in the gold/silver market?  Never heard of murder target Andrew Maguire?  Never heard that central banks manipulate interest rates, Libor rates, stock markets, housing prices, inflation rates (but not gold?)? Never understood that main business media and all other main media are in government pockets?  Never read Currency Wars?  Never heard of Jim Grant, Jim Rickards, Jim Rogers, or Mr. Gold, Jim Sinclair?  Never heard Greenspan say the gold market is rigged?    What is your job, to lobby for the World Gold Council, which is about to hold classes for central banks on how best to secretly fuck over gold owners?  Or maybe you need a job at Kiitco?   Or Goldman Sachs?  Got to say, Dr. Weiner, you're full of crappola.  What is it that you do for a living at the Gold Standard Institute?  Do they pay you well for this kind of tripe? 

Thu, 04/18/2013 - 12:54 | 3466988 akak
akak's picture

CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!  CONSPIRACY THEORY!!

 

There, did I automatically shut down all further discussion and open-minded thinking sufficiently?  Isn't that how it's supposed to work?

Thu, 04/18/2013 - 12:40 | 3466939 akak
akak's picture

Reading this homage to pro-bankster Establishment 'wisdom', I was at one point wondering if Leo had been invited back to write for ZH, but Leo never used so many big words (some of them even used correctly, too).

Thu, 04/18/2013 - 11:39 | 3466669 Badabing
Badabing's picture

"My personal opinion is that the Fed cares far less about the gold price than we do. Gold is not in the basket of goods whose prices comprise the Consumer Price Index. Dollars are not redeemable in gold, the Fed and the banks are not struggling under an obligation to deliver gold, and there is no run on the gold of the banks. "

Iran oil for gold! need i say more.

 

 

i will,  your working for them you sellout!

Thu, 04/18/2013 - 12:24 | 3466862 somecallmetimmah
somecallmetimmah's picture

Which explains the 8,000+ tons of gold reserves we retain for no particular reason.

Thu, 04/18/2013 - 11:35 | 3466643 Herkimer Jerkimer
Herkimer Jerkimer's picture




Nothing smells about this take down at all.

 

Here are all the pieces of the puzzle in order.

 

---------------------------------------------------------------------------------------------------------
GOLDMAN: SHORT GOLD (April 10/2013)
http://www.businessinsider.com/goldman-short-gold-2013-4

FED FORCED TO RELEASE MINUTES EARLY AFTER LEAK – SOME FOMC MEMBERS THINK QE ENDS SOON (April 10/2013)
http://www.businessinsider.com/fomc-minutes-march-2013-4

It is announced that Cyprus will sell it’s gold.

http://www.zerohedge.com/news/2013-04-10/here-we-go-cyprus-sell-%E2%82%A...

Then Cyprus statement is contradicted.

http://www.zerohedge.com/news/2013-04-11/cyprus-denies-gold-sale

Dragi makes statements about gold and Crprus on Friday 12

http://www.zerohedge.com/news/2013-04-12/mario-draghi-orders-cyprus-sell...

Then somebody sells 400 million ounces of gold.

http://www.zerohedge.com/news/2013-04-15/gold-crush-started-400-ton-frid...

Goldman Blows Through Year-End Gold Price Target Three Days After Telling Clients To Short
http://www.businessinsider.com/goldman-wins-on-short-gold-1450-trade-2013-4

CME hikes margins on PM Monday.

http://www.zerohedge.com/news/2013-04-15/cme-hikes-gold-silver-margins-185

CBs are buying up gold massively, on Monday. 55 tons.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/15_Ma...!.html

Gold Buying Frenzy Continues: China, Japan, And Australia Scramble For Physical
http://www.zerohedge.com/news/2013-04-17/gold-buying-frenzy-continues-ch...

http://www.theblaze.com/stories/2013/04/17/gold-drop-in-paper-price-resu...

See also:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Fo...

How it was done.

http://www.zerohedge.com/news/2013-04-16/guest-post-gold-slam-massive-we...
---------------------------------------------------------------------------------------------------------

Somebody should explain this.

I’m all ears. Well, not really…

My small little holes on the side of my little green head are open as wide as they’ll go!

•?•
V-V

Thu, 04/18/2013 - 11:30 | 3466617 Badabing
Thu, 04/18/2013 - 12:44 | 3466952 SilverIsKing
SilverIsKing's picture

I'll take a stab at it.  I'll say...hmmmm...well maybe...hmmm....uhhh...the premium on a 1 oz gold coin is $2,141.  Yes, the premium.

Thu, 04/18/2013 - 11:26 | 3466594 Badabing
Badabing's picture

"If you are firmly committed to the belief that the gold price is suppressed, then you may want to stop reading right here or else prepare to be offended. Consider yourself warned." dick

"In any case, when the price is rising, the gold bug treats it as right and natural. When the price falls, it is due to manipulation."

Pull your head out of your ass look around and see the trouble the world is in. Why would gold go down? 

Thu, 04/18/2013 - 11:00 | 3466463 rwe2late
rwe2late's picture

And then there is this explanation:

 The Fed and Goldman Sachs collude and operate in concert.

Goldman Sachs was behind the 400 ton dump which triggered the price fall of gold.

The gold price is being manipulated to prevent the Petrodollar from being abandoned for being less secure and stable than gold., or for depreciating relative to gold.

 

http://www.321gold.com/editorials/schoon/schoon041813.html    

 

http://www.globalresearch.ca/fed-orchestrated-smash-in-gold/5331174  

Thu, 04/18/2013 - 12:31 | 3466898 StarTedStackin'
StarTedStackin''s picture

Are you suggesting that Goldman Sachs is in Cahoots with the OBowel Movement?

 

 

That's

 

 

 

Raaaaaaaaaaycessssssssssssssssssssssssssssssssssssssssssssssssss

Thu, 04/18/2013 - 10:58 | 3466449 Payne
Payne's picture

No silver available for sale in SoCal at this price.  Dealers will not take orders.  Something doesn't fit the story !

Thu, 04/18/2013 - 11:10 | 3466517 edifice
edifice's picture

There is PLENTY of metal available; I would argue dealers are flooded with metal and that they are simply holding inventories.  Look to their buyback prices, for the clue.

Thu, 04/18/2013 - 10:58 | 3466409 macroeconomist
macroeconomist's picture

Turkish Mint has annouced today that there has never been such a high demand in its history, and they will not be able to deliver physical gold until 22 April. This happened for the first time ever in Turkey, where there is never any premium on physical gold price, and you can (or rather you could) purchase gold coins and bars at the paper price. In my lifetime, I have never ever heard there is shortage of gold in Turkey, but the last few days jewelry shops have run out of coins, there are no bars available on the spot market and the mint cannot deliver... 

Thu, 04/18/2013 - 10:32 | 3466279 Payne
Payne's picture

Tried to buy Gold here in CA yesterday, 2-3 weeks to get delivery.  Silver ? they will not take orders, there is no silver available.  Rational markets ??  Normally I can go into the shop and get Gold or Silver within a day.  The Precious metal dealers say that production cannot keep up with demand.

Thu, 04/18/2013 - 10:52 | 3466411 somecallmetimmah
somecallmetimmah's picture

This market is a fraud.  I don't know of anyone finding silver anywhere NEAR spot.  Junk, if you can find it, is as expensive as it ever was.

Thu, 04/18/2013 - 10:06 | 3466165 strannick
strannick's picture

Nothing new or eye opening about this. Same old John Nadler-esque crap.

Wiener says to be open minded, yer his argument ignores the 500 ton paper gold sale gorilla in the room. Whose the ignoramous?

Thu, 04/18/2013 - 13:58 | 3467265 nope-1004
nope-1004's picture

Jim Willie states that physical orders in large sums are going for $2,000+ per ounce.  What that means then, is that this article is ignorant of what may be truly happening in the market - huge backwardation!  Of course, your little coin shop is not at the same level as sovereigns buying, so the MSM info and "pricing" are all broken when it comes to the truth.

I know the swings in PM's have not been due to 100% manipulation, however, Volcker admitted that not selling gold to suppress it's price back in the 80's may have been a mistake.  So that's a free market?  LOL.

 

Thu, 04/18/2013 - 09:52 | 3466127 AT
AT's picture

We are not aware of any gold or silver analyst that called for the crash of last Friday through Monday. There are some analysts who are generally bearish, and we ourselves have predicting the rising gold:silver price ratio, and we emphasized that we were not bullish on the silver price in dollars all the way down from $35. But no one said that the gold price would drop more than 10% in two trading days.

FOFOA has been predicting this for years as part of the end game: http://fofoa.blogspot.com/

You should widen your reading scope.

Thu, 04/18/2013 - 09:51 | 3466126 MrMorden
MrMorden's picture

I guess we're just ignoring that Greenspan openly stated the Fed is ready to sell as much gold as necessary to keep the price down?

Thu, 04/18/2013 - 10:59 | 3466455 Alpha Monkey
Alpha Monkey's picture

Yes.  Ooh dancing with the stars is on!

Thu, 04/18/2013 - 09:14 | 3465919 orangegeek
orangegeek's picture

US Dollar has been climbing for some time.  Gold, priced in US Dollars, us just catching up.

 

Overlay chart of USD and Gold.

 

http://bullandbearmash.com/chart/gold-falls-dollar-climbs-vice-versa/

Thu, 04/18/2013 - 10:03 | 3466158 strannick
strannick's picture

Keith  Wieners mind is made up, dont confuse him with facts. 500 tons of Comex paper gold was.sold within hours to drive down the price. If you point to this fact, Weiner says your a conspiracy theorist. 

Thu, 04/18/2013 - 21:05 | 3469247 akak
akak's picture

And here I thought Kitco shitcanning that bankster shill Nadler was going to eliminate most of the absurd anti-gold propaganda out there.  I was wrong.

Thu, 04/18/2013 - 09:09 | 3465899 Kiss My Iceland...
Kiss My Icelandic Ass's picture

I for one appreciate reading different points of view on the gold market.

Thu, 04/18/2013 - 10:06 | 3466167 strannick
strannick's picture

Even when the different view is dumb?

Thu, 04/18/2013 - 10:34 | 3466307 DeadFred
DeadFred's picture

You would be surprised at how much information can be gleaned from stupidity. The science of genetics was deduced long before DNA was discovered by examining mutations, the cases where genes stop working. 

Thu, 04/18/2013 - 09:03 | 3465870 Stuck on Zero
Stuck on Zero's picture

Was there a message buried in here somewhere?

 

Thu, 04/18/2013 - 21:00 | 3469237 IamtheREALmario
IamtheREALmario's picture

No, you are supposed to believe that there is something more valuable in part two and subscribe.... lol, not.

Thu, 04/18/2013 - 08:59 | 3465839 Shevva
Shevva's picture

Pretty pointless really I learnt more from

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/10001937/Fed-and-Bank-of-Japan-caused-gold-crash.html

and he's just pointing out whats happened in the last few months.

Thu, 04/18/2013 - 08:58 | 3465838 aka Gil
aka Gil's picture

I've read some sensible articles from this author previously, but this one seems to be an attempt to re-write an established version of facts and events. I should have known what was coming as soon as the author defined a "Gold Bug" in his/her own terms. I'll pass on Part II, thank you very much.

Thu, 04/18/2013 - 09:04 | 3465828 ebworthen
ebworthen's picture

So isn't "Goldbug" just another generalization, like picking the prettiest face?

Also - what capital gains?

Thu, 04/18/2013 - 08:55 | 3465820 Peter Pan
Peter Pan's picture

"One cannot profit by buying gold and waiting for the price to rise."

The author lost credibility with this point and this can easily be proven.

1. If I can buy more oil or other commodities after a rise in the price of gold, then his statement makes no sense.

2. If I can pay off more of my fiat debt with less gold after a rise in the price of gold, how can he say that I have not profited?

Enough said.

Thu, 04/18/2013 - 08:30 | 3465717 blindman
blindman's picture

A Chemist Explains Why Gold Beat Out Lithium, Osmium, Einsteinium …
http://www.npr.org/blogs/money/2011/02/15/131430755/a-chemist-explains-w...

Thu, 04/18/2013 - 09:05 | 3465878 tip e. canoe
tip e. canoe's picture

hmmm, a very deep & interesting subject that gets diluted down to zero in the piece to scuttle the implications.

hey look over there, it's a brown guy in green scrubs and pink glasses!

Thu, 04/18/2013 - 17:15 | 3468173 blindman
blindman's picture

not only does he have cool glasses he knows something
relevant about chemistry and physics ! I say give him
a listen.

Thu, 04/18/2013 - 08:19 | 3465680 StarTedStackin'
StarTedStackin''s picture

What a dumbfuck stupid article.

 

 

 

WHO had 400 tons of GLD to drop on the market at one time?

 

I know the lying coward who wrote this article will never respond.

 

Educate yourself, douchebag........,.,

http://www.paulcraigroberts.org/

 

Do NOT follow this link or you will be banned from the site!