25 April 2013

Gold Daily and Silver Weekly Charts - Voilà, Les Jeux Sont Faits

"If you shut up truth and bury it under the ground, it will but grow, and gather to itself such explosive power that the day it bursts through it will knock down everything that stands in its way."

Émile Zola

Gold and silver rallied sharply today from their deeply oversold condition, which remained so even after several days of steady increases.

Today was option expiration on the Comex and it was quiet. After the recent bloodbath I cannot imagine it would be otherwise.  If I were of a manipulative mind I would hit the metals again hard tomorrow.

But I hear that this recent market operation has put a dent in the physical bullion under the control of one of the Fed's favorite banks, so that might be a dangerous play, and a risk of a run on the bullion banks.

GDP for Q1 tomorrow.

This seems to be a season for scandals. 

First it has been shown that the bulwark of austerity, the work of Rogoff and Reinhart, was not only mistaken in its Excel spreadsheet, but it was also highly selective in its use of data. 

So much so that an unbiased examination of the data shows that not only is their hypothesis not proven, it is proven false! And Reinhart is working for the Peterson Institute.

After all the crowing with the paper smash of gold and silver, and the widespread glee that investors were rejecting it, in fact there have been widespread shortages of actual gold and silver bullion available for sale. 

And there is still no heavy buying from the general public.  Ownership is still narrowly concentrated in those who follow money and financial matters.  That type of broader buying may be to come, but it has not happened yet. 

The open interest and other data show it was largely a bear raid driven by the manipulation of the markets in off hours using tried and true manipulative techniques of gaming the system.

What wonders and revelations will the future bring?

Intraday commentary regarding what may be behind the hysterical antagonism towards gold and silver here.