“This is an orchestration (the smash in gold). It’s been going on now from the beginning of April. Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance.
Then, a couple of days ago, Goldman Sachs announced there would be further departures from gold. So what they are trying to do is scare the individual investor out of bullion. Clearly there is something desperate going on....
I have assumed from the beginning that it is the Fed’s concern with the dollar because the dollar is being printed in huge quantities at the same time that other countries are abandoning the use of the dollar as international payment.
The exchange value of the dollar is (being) threatened, and if that collapses the Fed loses control over interest rates. Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail.
So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.
And to help protect this policy they have convinced or pressured the Japanese to inflate their own currency. The Japanese are now going to print money like the Fed. They are lobbying the ECB to print more. So I see this as a dollar protection policy.
...I know where the gold is coming from in the market, it’s just paper. It’s naked shorts, there is no gold there. If somebody wanted to take delivery on those contracts nobody would be able to provide it. I don’t know what the source of the (physical) gold is. Some people are saying that the actual stocks available for possession are rapidly declining...”
Paul Craig Roberts, Fed Orchestrated Smash in Gold
I am not so sure that Paul Craig Roberts is right in manner of degree. But it does make some sense, certainly more sense than the theories being put forward by the mouthpieces of the status quo.
I am sure this metals action was a lively point of discussion at Jim Sinclair's talk in Toronto today.
I do not see anything related to option expiration. The next stock option expiration is next week on the 19th, and the next Comex expiration is the Thursday after that on 25 April.
Personally I think the wheels are falling off the economies of the West, and the financial engineers are hitting the panic button in advance. The BRICs are going to be in open rebellion if the rest of the G7 joins Japan in massive printing.
The Anglo-American banking cartel is doing what they do best: engaging in opaque market operations to shift the pain to the broad mass of innocent people when their schemes start to fall apart. They have used their usual resources to spread the word in advance.
The kind of mass selling we saw today was not designed to be profit maximizing. It was designed to flatten price to affect market sentiment and provoke additional selling. I would imagine we will see some more activity along those lines before this is done.
Andrew Maguire says that there is no physical gold for sale at these prices. I did check a few websites that post decent amounts of gold and silver for sale and the premiums over spot are widening.
This assault on property and savings is not all that different that what is occurring in Europe, except it is happening on a global scale. Time for a grand bail-in, and the mechanism will be the yen, pound, euro and dollar. The banks must be saved and all must pay.
All we can do is be on our watch, and remember who we are, what we know, and what we believe.