20 December 2012

Gold Daily and Silver Weekly Charts - Audacious Oligarchy

"But there is a sort of 'Ok guys, you're mad, but how are you going to stop me' mentality at the top."

Robert Johnson, Audacious Oligarchy

Intraday commentary about the December smackdowns in the precious metals and why they might be happening, Same Time Last Year.

The cup and handle formation is now inactive and off the charts. It looks more like a trading range from here. It could be reactivated, but in a different form.

There is no reasonable doubt in my mind that this is not price manipulation. There may be some legitimate selling in this pile of manure, but what we are seeing is pretty brazen. The only questions are the details, of who and why exactly.

I think it is not a currency thing so much as a 'gaming the end of year' thing, and an 'buying some valuable mining properties on the cheap' thing.

Last year silver was smacked down quite hard into the end of December, for example, but was back up to its original level and even a little higher by the end of January.

Maguire: Physical Silver and Paper Markets Diverged to Extreme.

Maguire: Who's Buying and Who's Selling

Maybe it is the government driving this. But if the price decline turns around and goes back up after year end and the fiscal cliff passes, then we have to ask, 'Why would the government do this?' Why would they have done it last December when we saw almost exactly the same thing, and the price of silver had fully recovered by the end of January?

No matter which way you wish to account for it, it looks like audacious oligarchy, a partnership of elites in both the public and private sectors.