Gold was lifted into the oxygen depletion zone above $1,900 overnight, and as predicted, the bear raids were launched today in force, together with nonsensical commentary from the financial demimonde.
"...the market in physical gold is tiny, and largely comprised of nutcases."
No wonder the Anglo-American financial cartel is in such decline. Blind is the arrogance of faded empire, when it can no longer succeed by telling their client states what to do.
And of course the television spokesmodels were able to cite the overnight peak and say, "Wow, strap on my seatbelt. Gold is down $60!" Better rush into the rock solid safety of equities. Here are a very nice selection of stocks for you, at recently marked down prices.
Yes, they really are that obvious.
So what next? Gold and silver will probably be subject to additional bear raids as the Comex expiration is not until Thursday the 25th, and Bernanke will be speaking from Jackson Hole on Friday the 26th.
This does not yet have the feel of the May option expiration silver smack down, with its serial margin increases by the Exchange. The gold market has a strong underlying bid now with Venezuela repatriating its gold, and strong buying by non-Western nations and their central banks.
There is a currency war underway, and the primary bone of contention is the nature of the world's reserve currency and fiat based international trading regime. There are ancillary issues of course, but the position of the US dollar, the petro-dollar if you will, as the world's reserve currency is key.
The biggest risk to Venezuela is not in transporting the gold. It is the counter party risk, of obtaining the return of their sovereign property from the Anglo-American banking cartel.
