08 May 2012

Gold Daily and Silver Weekly Chart - World Markets Decouple from US Prices in Oil

With regard to gold and silver, the premiums on the trusts and funds, which I put out earlier today, smell more like capitulation and a forming bottom than anything else. That is, unless the markets in general 'fall out of bed' as they did in 2008 in a panic selloff seeking liquidity.

Below is an interview which Max Keiser has with Leah McGrath Goodman about the speculation in the oil markets.  Goodman is the author of a recent book, The Asylum: The Renegades Who Hijacked the World's Oil Markets."

One of the more interesting facts to come out is that producers became so disenchanted with the wild speculative swings in the US oil markets, affectionately known by trader as 'The Asylum, due largely to paper speculation, that key producers rejected it for other non-US benchmarks.

I suspect strongly that other commodity markets will follow, and the US will lose its role as the world's price setting leader in many markets because of its tolerance for fraud and manipulation.

Source: Max Keiser