At this point the Gold manipulation is outright absurd.
For years there have been rumors that Gold and Silver were being manipulated lower. For the most part these rumors were thought to be in the realm of “conspiracy theory” by most of the investing crowd.
However, at this point the evidence is clear. Someone is clearly manipulating Gold lower. This is happening almost every morning when someone dumps Gold in massive sell orders, pushing the precious metal’s price sharply lower.
The reason we know that this is a clear intervention, and not simply a large institution selling concerns the pattern of selling.
On Friday morning last week, someone staged an order to dump 5,000 futures contracts of Gold. That amounts to over $640 million in Gold. In one order. Placed all at once.
When it happened, Gold dropped $25 per ounce in a matter of two minutes. It doesn’t matter that the sell order was cancelled half way through, the damage was done and Gold continued to languish as it has (extraordinary given the systemic risks in the US and Europe today).
No one and I mean NO ONE would place an order like this. It simply doesn’t happen. Anyone who is trying to unload a position of this size would do it in chunks over a period of time in order to not push the price sharply lower.
Put it this way, if you happened to own this much Gold and were looking to unload your position, you would not want the price of Gold to be lower because that would mean you make less per ounce sold.
So you would be very careful to unload this position with as little impact on the market as possible, so that you could get the best prices. You wouldn’t just hit “sell” and dump the whole batch in one go.
Again, no one would do this. That sell order came from intervention. Someone was trying to send a message to the market. Gold futures were halted for 10 seconds as liquidity dried up.
I keep hearing how this sell order could have been a “mistake.” If that were the case, it wouldn’t keep happening because the person who made the mistake would be fired.
The “mistake” has happened repeatedly over the last few weeks. So either some institution has a whole roster of numbskulls trading Gold, or the individual numbskulls at different institutions are all making the same mistake in roughly the same time period.
The odds of this are next to none.
Which begs the question, just who is trying to push Gold lower right now? Just about any sensible investor would be buying the precious metal to hedge against the default risk/ debt ceiling risk in the US.
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